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?
I 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
- Purchasing power
- 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.
It has come to our attention that some IFA-member companies may be providing information about franchising that is long out of date and no longer presents an accurate picture of the sector.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Read more about those out of date franchise success rates at OPEN Forum By American Express.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:
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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