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Time after time franchisors comment on how difficult it is to find good franchisees.
Surprise! As you look for a good franchise business you have just as many concerns and challenges.
For you it’s compounded by:
In many ways, it’s easier to select a family pet than it is a franchise business. With a pet, if it’s a thoroughbred, you can check its papers for lineage, bloodlines, etc. The breed will be known for its personality and mannerisms. In some cases you’ll have an assurance or even satisfaction guarantee from the breeder or pet shop. Often your spouse and children will be a vital part of deciding and why not? It’s going to live in your world and home.
So how do you explore, investigate and analyze a franchisor?
Fortunately with the Arthur Wishart Act in Ontario you’re able to do this more easily. If you live in a province other than Ontario, you can still ask for and receive the franchisor’s Ontario Disclosure Document. In this you will find the franchisor’s:
Now it’s time for you to look at, taste and smell the franchisor’s system and personality.
What has been your past risk experience?
Look at your net worth
-cash -real estate
-credit card balance -loans (type and term)
Of all factors, your past performance in taking risks may be the most important. If you’ve never been through any of these changes, maybe it’s best not to jump in. Alternatively – maybe a partner will reduce your risk. With good franchisor support, you’ll still have lots of challenges in the day-by-day operation of your new franchise business so you won’t need to second guess yourself.
Now, let’s get back to choosing a franchisor. First – decide on the “breed”.
Many factors will go into this choice. It’s a very important decision since everything else flows from it.
Take a look at your own background.
Proceed with caution if you are investing more than 50% of your net worth, especially if you’ve avoided risks in the past.
After everything else has been reviewed, one important ingredient remains. What will you enjoy?
Regardless of these or other personal traits or preferences, keep in mind that you must be the prophet. Day after day you need to enjoy working your business. If you don’t, you’ll resent its demands and challenges and you won’t do as well as you could.
All of this is presented to prompt you to start to analyze yourself. Many franchisors rely on psychological testing to give them an added insight into you.
I’m amazed and even shocked at how many people go into a franchise business without professional advice and/or self-analysis. Do so at your peril – then, truly, it’s buyer beware!
Years ago I went to a testing group to help me analyze myself. Their reports and comments confirmed many things I already knew yet surprised me in some areas.
Spend money for professional advice and contact us if you’d like to use a personal success analysis form. It adds up as help in making your choice.
By doing all of the above, it will mean you’ll have a much better chance of choosing a good franchisor and having a happy, healthy business.
Written by C. John Woodburn
John can be contacted at:
Woodburn & Associates
4034 Mainway Drive – Suite 202
Fax: (905) 335-4649