Franchise options abound in today's economy. However, close examination reveals that not all franchises are created equal.
There are several advantages to entering this industry, including resistance to recessions, fewer start-up expenses, little overhead, a greater quality of life, and the option to work your own hours.
Many of the franchisees I have worked with have found their way to success, and I'd like to tell you about one of them. Kevin S. is someone I'd like to introduce to you. His thoughts are included below.
Question: What were the top three things (characteristics) you were looking for in a business?
Answer: A good business model with achievable positive cash flow in less than six months from the grand opening.
A franchisor that offers lots of support and has a track record of success.
Question: Did you experience fear/hesitation/anxiety at some point? When? How did you deal with it?
Answer: I experienced hesitation throughout the entire process for a variety of reasons. I dealt with it by keeping a running list of questions. During validation calls, I would ask the same questions to each franchisee (or Franchisor). This often led to more questions and the need for more validation calls. Essentially, I found that there can be a wide variety of answers to the same question and the success of each franchise really depends on the owner’s due diligence, organizational skills, ability to execute a plan and drive.
Regarding fear and anxiety, I really didn’t experience much of this until it came time to make a decision. Do I write the largest check of my life? Do I have enough capital to see this through? Have I planned for the worst-case scenario? What is the worst-case scenario? Could I lose everything? Did I forget to ask an important question that would change my mind? Am I taking way too big of a risk? Then it hit me,I just spent two months asking 50 million questions that helped me develop some conservative but acceptable projections. Did I miss something? Probably. But I made enough connections to get any question answered or any problem solved. Regarding that huge check, I didn’t want to part with, once I paid it, the fear and anxiety disappeared. It was replaced by a drive to be successful (I hope anyway).
Question: How valuable did you find talking with franchise owners? Anything especially surprising or interesting?
Answer: Talking with as many franchise owners is without question the most important part of the process. Not only does it help you with your decision, but if you decide to move forward, you have also made a useful connection.
Question: Did you feel well equipped at the start of the validation process? If not, what could you have known before?
Answer: When I started the validation process, I thought I had to contact the owners directly to get them to speak with me. I was not aware there were biweekly group validation calls set up by the Franchisor. However, I would still recommend that a franchisee not only participate in the group validation calls but all reach out to owners directly for one on one calls. Again, this helps to form a useful connection if you decide to move forward.
Question: When did you know that this was the right franchise for you?
Answer: It took a while for me (about two months). I thought I knew before the discovery day. Then, I was almost talked out of it by other potential franchisees from discovery day. A few days after discovery day and after a few more validation calls, I realized that the other potential franchisees had not done the same amount of homework as I had.
Question: Do you think you would have found this business without my help/guidance?
Answer: Probably not.
Question: What did you think about the unique perspective I gave to you being an experienced multiple-unit franchisee?
Answer: It was helpful to know that you have gone through the same process. It was also helpful to know that you own a multi-unit franchise.
Question: Now that you have gone thru my process, what advice would you have for someone that is thinking about owning a franchise?
Answer: Do your homework.
Call as many franchise owners as possible.
Ask a lot of detailed questions.
Ask yourself if you plan and/want to stay in your corporate job for the rest of your life.
Use Ryan Perry to help find a franchise that fits your situation.
Let me help you find your path to franchise ownership. Please schedule a call here.