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Franchise opportunity concerns and considerations:

franchise opportunitySome have found franchise opportunities to be the answer to their liberating dream of owning and running their own small business. Kevin Cushing (Small Business Opportunity Magazine, Winter, 2006) has identified four areas that you absolutely must consider when thinking about a franchise opportunity for your small business success. 

1. Research 

When you begin considering franchise opportunities, you should take advantage of the “discovery days” that many of the networks offer.  These are frequently excellent opportunities to make sure that the franchise is a good fit between the network and franchisee.  Discovery days are usually one-day events which provide extensive background information about the network and the franchise opportunity. 

Once you've identified the franchise opportunity that seems to be the best fit, you should then speak with at least 20 franchisees in the network.  Speaking to a range of franchise owners from the most successful to those operating at below average locations, should then provide significant insight into the business from a variety of perspectives.  You should always beware of networks that claim that all of the franchise opportunities are above average. 

2. Training 

Choosing the correct franchise opportunity also means completely understanding the training programs offered by the network as they will be the tools that position you for success.  Also, the corporate office should demonstrate a commitment to maintaining both initial and ongoing training. 

The ideal franchise opportunity would include a corporate office that provides online seminars and fully develop training programs for all positions within the business.  This will help prospective franchisees to understand the complete workflow of the business, how it operates and what the roles of each prospective employee will entail. 

3. Corporate Support 

Ongoing support from the corporate office is an incredibly important piece of the franchise opportunity puzzle.  The corporate office should be very responsive to the needs of their franchisees.  At the very least, new franchisees should be able to expect weekly calls and bimonthly visits by regional sales and marketing managers as well as toll-free telephone support from dedicated help desk experts. 

4. Challenges to starting your new franchise opportunity 

You should be prepared and expect many challenges in the beginning stages of your new franchise opportunity.  The integrated support system is a major benefit to franchisees.  You should allow yourself a learning curve and understand that it will take you some time to learn the finer points of running your new franchise opportunity. 

As the owner of a new business you may fall in the trap of relying too heavily upon the experience of your employees.  You should rely upon the same evaluative skills that helped you to assess and purchase your new franchise opportunity in choosing the right employees and making the correct strategic decisions for your new business.  A former owner of the same type of franchise opportunity you have purchased can have great value in assisting in your decision-making, but you should not allow their judgment to replace your own. 

Based upon information from Franchise Wise Purchase Pointers by Kevin Cushing: Small Business Opportunities Magazine, Winter, 2006 

Additional information by Paul Susic M.A. Licensed Psychologist Ph.D. Candidate CEO/President Susic Psychological Consulting P.C.


 

 
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