I love my industry. Having gotten my start in franchising 40 years ago, selling McDonald’s franchises for Mr. Ray Kroc, I have to admit I still feel the same exhilaration when I speak with a new or potential franchise owner that I did so long ago. And the reason for this “exhilaration” is that franchising offers these individuals such marvelous opportunities to succeed – and I get excited FOR THEM. To me, franchising is a cornerstone of the original “American Dream.”
And the “Dream” has certainly been there for me…throughout my career, I’ve been a franchise owner, a franchise concept developer, a franchise operations manager, a franchise sales leader – and today I work as a franchise consultant, assisting people through the process of finding and buying the right franchise for them and their family.
People ask me every day why my role is relevant to a prospective franchise buyer. And I usually start to answer them with all of the usual rhetoric: “because the work we do saves you from making costly mistakes” and “you don’t know what you don’t know – and need someone to HELP you know.” And there is nothing wrong with these answers – they are accurate. But they don’t quite “hit the target.”
The real answer is that business (and franchising, of course) is all about people – and unless you have the right kind of access to people, where you can learn who they are, and what they are all about – then you, quite simply, don’t have the ability to find out what you need — and want — to know. And, believe me, you want to be able to tell “the good guys from the bad guys” so that your hard-earned savings are well invested. THIS is what good franchise consultants help you do.
The franchise industry, like all industries, has its percentage of less than reputable characters who will try to sell you a franchise – despite the fact you are not remotely qualified to operate it. Or those who will let you believe you can make a far greater return on your investment than what is normally feasible. And, yes, even those who sell you something – that can’t live up to its promises or provides them the highest commission.
Not the franchise companies we work directly with at The YOU Network, but they ARE out there.
And even more alarming, the industry has lately experienced a surge of wholly uncredentialed “franchise consultants” who have no industry experience, very little or inappropriate business experience – and can really perform no real service other than attempting to “match” a prospective buyer to a franchise – which usually ends up being the franchise that is going to pay them the highest referral fee.
This kind of misleading (and often harmful) activity continues to alarm me, as I believe it is causing severe damage to my beloved industry.
The “good news” is that these companies are in a minority – and our legal system and “industry police” continue to try to rid us of these charlatans.
But, the “bad news” is that the charlatans are still out there – and possibly in even greater numbers during recent tougher economic times, as they prey on the inexperienced and needy. As a result, anyone considering the purchase of a franchise needs to use more caution – and check the credentials (their work history, whether they have at least 10+ years in franchising, and held management roles) of the franchise consultant they are considering – before they begin their franchise search. The fact is, franchising is new to most people. And there are certain things about it that can be different from corporate world (or other) experience that no one can anticipate right away. It just can’t hurt to have experienced counsel at your side.
When we (The YOU Network consultants) work for a client, we pre-screen franchise companies on their behalf. Those of us that have been affiliated with franchising for a number of years know that there are certain elements that make a franchise “tick,” and we look for these elements when we pre-screen franchises for our private clients group. We call them “pulse points” – and they are usually indicators of a business’ health – beyond just “the performance numbers.” (If you would like to know more about these criteria, check out the “Avoiding Windmills and Scams” white paper posted on this website.)
There are over 3500 franchise companies in the U.S. – most of whom are solid, well-managed companies. Don’t let the nonsense get in the way of your desire to own your own business. Be serious in your approach to finding the right franchise for you – and use good counsel – and you’ll be heading toward your chunk of the American Dream.
Chris Wright
President
The YOU Network
