FRANCHISING
Overview
Have you ever considered working for yourself? One way to do this is to
purchase the rights to use a franchise, or, in other words, to become a
franchisee. Many military veterans have become successful franchisees for
a variety of reasons, but mainly because you work hard and follow the rules. For in the end, a franchise is nothing more
than a business model whose rules and procedures have been trademarked so that others
can duplicate them to provide that same product or service again and again.
Today, franchising in the U.S. alone is a trillion dollar business!
But is franchising the right opportunity for you?
Is Franchising Right For Me?
While there is no magic wand you can wave to get the correct answer, there are
indicators that you should find helpful. Successful franchisees share some common
traits. . . namely, a willingness to work hard, take prudent risks, have an aptitude for the service or product
being offered through the franchise, and the discipline to carefully follow ALL of the franchise rules.
The International Franchise Association (IFA)
recommends that you carefully and thoughtfully answer the questions in its Franchise
Interest Questionnaire. Two excellent sites
for gathering more information about franchising can be found at
Entrpreneur.com and
FranchiseSolutions.com.
As you do your homework to determine whether franchising would be a good
fit for you, it's very important that you talk with current franchisees --
especially those who are military veterans -- to get their first-hand insights
into franchising as an employment option.
Which Franchise?
Assuming that you have done your "due diligence" (i.e., research) and come to the conclusion
that franchising is right for you, the next question you will need to answer is which franchise? There are literally thousands to chose from. Some require a
relatively small investment and a modest amount of operating capital; others
cost in excess of a million dollars! Some franchises are service based; others
are product based. Who can help you decide which one is best for you?
You might start by contacting The Entrepreneur's Source
or the Franchise Network (FranNet). Their
consultants will work with you on a 1-on-1 basis to help you select a franchise
that best meets your needs. As a military veteran, you should also be
aware of the
VetFran Program, which stands for Veterans Transition Franchise Initiative.
Under the IFA's VetFran Program, there are scores of franchisors that have
agreed to provide qualified veterans with financial incentives not otherwise
available to franchise investors.Financing
Once you have winnowed down your choices and selected a franchise, the
next question that you will need to answer is how will I pay for it? As you
think through your answer, remember to include both the cost of the initial investment and
the operating capital you will need to keep the business running on a day-to-day
basis. Where should you turn for assistance?
Small Business Administration
The Veterans Corporation
Which Location?
Depending on the franchise selected, the location could have a significant impact on how well it
performs. For example, if you were purchasing a pizza franchise, your chances
for success would be better if your store were in a bustling city
near a college campus than in a rural farming community. Not to fear. . .you will
not be alone in this decision. The franchisor (your "parent company")
will want you to succeed and should
be motivated to help you thoroughly research the area and make a smart decision
regarding location. In some instances, your location will be affected by the
presence of other franchises in your area.
Training!
As with any military operation, training is critically important to the success
of your business. A good
franchise will have a well-developed training program.
Make sure that you participate in the training, take good notes, and follow the program to the "T".
Conclusion
This material is intended to provide you with an overview of franchising. The listed organizations are provided for
informational purposes only. Some
franchisees are wildly successful; some are not. Ultimately, it is your responsibility to determine whether franchising is right
for you. If you do decide to become a franchisee, we wish you every
success! |
