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Could Franchise Businesses Start Invading Your Small Town

By Becky McCray

Guest post by Joel Libava, the Franchise King

Can you imagine what your main drag would look like with a myriad of franchised sub shops, pizza joints, frozen yogurt shops, and convenient stores, all lined up and ready to gladly accept your credit cards?

Oklahoma 020I really don’t think it will happen quite like that in a small town near you, but franchises and their franchisees (which may turn out to be neighbors of yours) could open up shop, right down the street from your local hardware store. And if so, would that be a bad thing?

Franchisees are people too, you know. They’ve decided that they’d like to be in business for themselves and they’re taking their shot at The American Dream. They’ve chosen the business model of franchising as their path.

Here’s what a franchise provides;

  • An operating system
  • Formal training
  • Support
  • Purchasing power
  • Branding
  • Marketing plans
  • Site selection assistance
  • Franchisee network

That’s a pretty impressive list, and those are just a few of the reasons that I’m so focused and passionate about franchising.

In my role as a franchise consultant, I’ve helped lots of people make the right choice in a franchise, (as long as they’re the right type of person for a franchise to begin with) and have taught them the proper franchise research techniques to help them lower their risk.

Lots of people think that buying a franchise is a lot less risky that starting their own business from scratch, but it’s not necessarily true. One of the reasons for this common misconception has to do with two full decades of franchise success rates being bandied about by all sorts of franchise industry folks.

The IFA, (International Franchise Association) even had to put out a letter to its members.

“Dear Friends:

It has come to our attention that some IFA-member companies may be providing information about franchising that is long out of date and no longer presents an accurate picture of the sector. Of particular concern is information claiming that the success rate of franchised establishments is much greater than that of independent small businesses.”

Read more about those out of date franchise success rates  at OPEN Forum By American Express.

Here are some examples of franchises that can be found in small towns:

  • BP ampm stores
  • Aim Mail Centers
  • Country Place Living
  • Tim Hortons
  • Sonic
  • Line-X

That’s not a complete list. To find more, go to a franchise website like Franchise Direct, or Franchise.com.
I really don’t think that your town will be overrun with franchises, anytime soon. Heck, you probably have a franchise or two in your area right now. Do you know who owns them?

I guess that my point in all this is to make sure you do know who may be bringing a franchise into your town. It’s not coming from a huge conglomerate like Best Buy, or Staples. The next franchise business that opens up in your town will probably be opened by one of your neighbors. This neighbor is putting a sizeable amount of his or her own money into this new business, hoping and possibly even praying, for its massive success.

That’s not a bad thing, right?

The Franchise King®, Joel Libava, is a Cleveland, Ohio based franchise consultant and marketer. His main blog, The Franchise King Blog, is well known in small business/franchise circles, and his newest project, Franchise Online University.com has some great eBook style guides on franchise ownership, including one that’s free.

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  • About the Author
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Becky McCray

Becky started Small Biz Survival in 2006 to share rural business and community building stories and ideas with other small town business people. She and her husband have a small cattle ranch and are lifelong entrepreneurs. Becky is an international speaker on small business and rural topics.

www.beckymccray.com
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July 21, 2010 Filed Under: entrepreneurship

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Comments

  1. Ray Melissa says

    July 22, 2010 at 5:17 pm

    I am a sentimental person, so when I found out our historic burger shop was shutting down this summer I was crushed. Even more so when I found out the property was being taken over by Sonic and another restaurant. The locals, who still reside there are so pumped as my old favorite was falling apart and losing business. They are ready for change and excitement in their dwindling town.

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  2. The Franchise King says

    July 23, 2010 at 11:15 am

    Ray,

    Thanks for reading my post, and also, thanks a lot for commenting.

    If a franchise business can help turn thin gs around in any town, of any size, I’m all for it.

    Change is inevitable, right?

    The Franchise King®

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  3. Doug Stewart says

    July 23, 2010 at 8:11 pm

    My girlfriend’s brother recently opened a Mazzios franchise in Stigler, OK. During a parade through downtown, I drove the Mazzios float — a truck pulling a flatbed full of kids throwing goodies into the crowd. I was surprised when people shouted, “thank you Mazzios for coming to Stigler.” Franchises can be a welcome sight in a small town.

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