Maybe you have heard numbers about the success of franchised businesses compared to starting your own business. The problem with most numbers is that they typically come from one study and are not repeated year after year to see if they hold true.
So why believe in the franchise model? Why pay a franchise fee and ongoing royalty if there is no guarantee of success?
It really depends on your personality and what you are trying to accomplish. That upfront franchise fee may be minimal compared to the investment of figuring out a brand concept, operating tools, training tools, website development, a marketing plan, and more. I think we can all agree that the franchise fee is probably worth the amount of time and energy it would take to start a business from scratch.
But what about the ongoing fees? How do those benefit a business? There are two types of business owners, the Lone Wolf and the Pack Member. The Lone Wolf would benefit from the start-up materials and even some of the ongoing support. However, they may feel disconnected and not utilize the tools much as they are using their lone wolf tendencies of figuring out and navigating things alone.
Then you have the Pack Member. They also enjoy the start-up materials and that everything is ready to go, but they also thrive in an environment where there are other franchisees to communicate with. They use the forums, intranet, training materials, and networking to help grow the business . . . and even more importantly to LIVE THE BRAND.
In our experience of working with both Lone Wolves and Pack Members, the longest lasting and most satisfied franchises are the pack members. Some Lone Wolves have enjoyed the franchise for a certain amount of time, and then sold their business when they achieved what they wanted.
So it is really up to you. What do you want to achieve in your journey of business ownership? Either way, a franchise may be a great starting point. You will definitely learn more about your personality as you venture into business ownership. Do you want to do it alone or with support? Your choice.
Photo by Ray Hennessy on Unsplash