Here is why:
- Investment. Be prepared to invest a lot of money in your Franchise system. This is critical, because if you hope to one day collect a franchise fee you had better have something worth paying for.
- Experience. If you don’t know someone that has done franchising you need to find someone fast. Franchising is not just about royalties, and franchise fees, it is about creating value, creating a brand, and being a good partner. This is critical, and I can’t express enough how important this piece of the puzzle is. Unfortunately there are some systems out there who are only interested in the fees they collect. If you are in business for the long haul, and I would recommend that you should be, you need to have someone who understands the relationship between franchisee and franchisor and can help you execute on making that relationship come off the way it should.
- Not everything should be franchised. I have often used, and heard the express “you can’t franchise mediocracy” and it is true. Before you start franchising your business be sure you have some worth franchising.
- I hope you don’t need sleep. Like anything worth having, a franchise company is going to take a lot of work, mind time, dedication and difficult moments. Nothing was more exciting than adding our first franchisee to our system, and nothing was more difficult than losing our first franchisee.
Posts
