Before tackling this fully self-questioning, a few basics need to be covered first:
- What is a franchise?
- What is your strength?
- Have you ever used a behavioral assessment tool such as the DISC Profile or the Meyers-Briggs Personality Test?
- Do you have clear written goals for your personal and professional success in the next 10 years?
- Do you publicize your values and know what will happen to support their behavior?
- Have you reached your local SBDC (Small Business Development Center) or SCRE (Retired Executives Service Corps) class?
Let’s start by explaining what privilege is.
Have you seen the famous TV series “Breaking Bad”? Did you see an accident? If so, then all you need to know about the franchise, Walt explains in the opening episode where he argues with Jesse – “I’m getting ready, you’re parting.”
Yes, I tell you everything you need to know about the franchise for sale industry that you can learn from a drug dealer.
My colleagues may close their eyes and laugh at me from the building, but let’s keep it simple.
A franchise model is just a form of distribution. One way to grow is one way to grow your business. Some of the other popular growth strategies are:
Use bank loans or other foreign investment capital to fund additional accommodation and staff
Partnerships, mergers, or acquisitions with strategic partners or competitors
It’s not scary that once you receive this information, right? It’s not as complicated as some people would like it to be. There are also federal and state definitions that you will need to acknowledge.
Federal Law: Under the FTC Franchising, there are 3 elements of Franchising:
Brand franchisors are granted the right to distribute goods and services that contain the franchisor’s trademarks, service marks, trade names, logos, or other trademarks.
Mission control or support. The franchisor has great control over the franchise process. Examples of essential controls or utilities include:
- Site approval
- Website design requirements or views
- Specified business time
- Special production technique
- The required accounting method
- It is necessary to participate in an advertising campaign
- training program
- Provides manual operation
Payment Required Franchisors must pay at least 500 Americans (or within 6 months) before the franchisor (or affiliate) opens a business. The required payment includes any payment for the franchisor’s right to become the franchisor. This includes royalties, royalties, training fees, payments for services, and payments from the sale of products (unless an appropriate amount is sold at a fair price at wholesale prices).
If all three elements are present, the relationship will become a “franchise” for the FTC franchise role.
State law: State law definitions for which concessions vary, but general topics include:
Marketing plan The franchisor has the right to participate in the business of offering, selling, and distributing goods or services under a marketing plan or system that is strictly determined by the franchisor.
Interest class. Franchisors and franchisees are interested in marketing goods or services.
Moving on … I live in the San Francisco Bay Area and everyone loves talking about their new startup.
I have news for you: Stop talking about startups and build your own business. Likewise, stop talking about starting a franchise or joining a franchise. Accept the idea of starting a small business with predefined rules, regulations, processes, and procedures.
Keep that in mind when deciding whether you are a good fit for the franchise business model. But past experiences are a good sign for future success.
What do you think about the following questions?
Are you happy to be part of a team?
Do you enjoy following an established system?
Have you ever managed people?
How would you feel if you had to pay?
Do you follow a set of applicable rules? How about strict or military details?
Do you need to acknowledge your creative ideas and individual contributions?
Can’t you pay your wages for at least 12-18 months?
Are you ready to invest your hard-earned money of 25K – 45K before the bank, bank loans to make room on the team?
Have you ever developed a business plan? If not, are you ready for advice?
Do your family and friends support your decision to buy the franchise?
Have you ever worked for yourself?
Here is a shortlist of things to remember. Your mentor, coach, or excellence advisor can help you reduce your focus and help determine if you are a particular fit.
It is important to know that as a business owner you will get many titles. Manager, customer service, finance, sales … you use it on many levels. You don’t have to be an expert in every field, but you do need to know when and where you need help