As someone interested in working with a Franchise model, you've undoubtedly come across the terms Franchise Disclosure or Franchise Disclosure Document before. Look on any Franchising website and you'll see it as one of their 10-step 'own your own location' processes, or ask any Franchising team member the question 'how much money can I make' and FDD will undoubtedly come up in their long and winding answer.
Many people interested in opening their own business quickly come to a crossroads, to do it by themselves and start something new or to join a Franchise. But how do you know Franchising is more advantageous than opening your own business?
You've likely heard the term before, but do you really understand what 'Franchising' means? On top of that, what do all of the other related terms mean; who's the Franchisor, who's the Franchisee, what's a royalty, etc.? Don't feel bad if you're not up to speed on the lingo, most people aren't. In fact, although Franchising can be an incredible opportunity for people, most people don't really know much about this model other than that some pretty big restaurant brands use it. That's why in this article we're going to boil it right down for you. Regardless of what level of understanding you're starting from, this guide will give you the understanding you need to identify if the franchising model is one you should be taking a closer look at.
The Franchise model offers a unique split of responsibilities between two groups - the Franchisor and the Franchisee - to create and develop a brand/system, and to use that system to grow businesses across various markets. This model can create a best-of-both-worlds scenario for a Franchisee, which has driven thousands of people to join Franchise models all over the world over the last century.
As a Franchisor, I try my best to be as open and honest with people as possible on all aspects of running their own Franchise. Our company, Pizza Hotline, has been franchising for decades and is extremely proud of the success we’ve had with our long-term Franchise Partners. We attribute that success to one thing above all else – transparency. Simply put, people need to understand what they’re signing up for, and actually want what their signing up for. While this might sound simple, you would be shocked if I told you how many people I speak to about Franchising who simply don’t understand the process and haven’t really figured out if it’s something that they want to do. When we meet people like this, our company always takes the same approach: we share the truth, we tell them what we think the pros and cons may be (based on what the person has shared with us), and we always advise them to go back to the drawing board and take some time to reflect. We do this because we want to bring people into our organization that we really believe we will be able to share in long-term success with. But different people do better in different environments. Workloads, industry, size and complexity of the concept, level of direct customer interaction, even daily drive time or noise level in the business’ offices and more can all have huge impacts on the quality of life and ultimate success of a Franchisee. In the end, it all comes back to the simple question: what do you want? The answer, however, might be harder to identify.
If you're like most people, at one point or another you've dreamed about owning your own business. You may have even figured out what kind of business you want to open. But now what? Do you start from scratch, or do you join a Franchise? Do you do it by yourself, or do you find a partner? Chances are someone you know has talked about Franchises before, and told you with 100% confidence that they're cash cows. Just look at McDonald's, Burger King, etc. After all, you yourself have purchased from a Franchise in one way or another countless times. It has to be profitable, right?
Many people find themselves in the frustrating situation of wanting to open a Franchise, but not having enough money. While this might seem like a unsolvable problem, we're going to give you a few tips and strategies that you can use to boost your odds in landing the Franchise of your dreams, regardless of how much money you have right now.
Almost everyone who considers Franchising asks themselves the question at one point or another, should I join a Franchise or should I make my own brand? While the true answer to that question involves both looking inwards as well as out to what's available, in this article we'll highlight a list of some of the top external factors that make Franchises attractive for Franchisees.
