You are interested in a couple of franchise opportunities. You go to a franchise expo, then you ask around and get pitched by franchisors about the prospects of their franchise business and franchising as a whole. You read advertorials, reviews and almost anything about franchising. You think you are ready.
From my own entrepreneurial journey, I have seen entrepreneurs trapped in a business they don’t like and eventually they need to exit – simply because they think they are ready. Listen, you will never be ready, unless you are sure about the business prospects, in this case, franchising prospects. Unless you consult with an expert franchise consultant, you will only see the tip of the Iceberg. You’ll hear the typical “historically, franchising has 92 percent success rate…” and such. The cold hard truth: Franchising has similar rate of success (or rate of failure, if you will) as any other types of business.
I was jumping into franchising pitched by the same pitch: Franchising has better chance for success. Well, in my case, it’s not. I followed every single detail in the operational manual – and my franchisor knew it. I get proper support. My location proposal was approved. I was playing by the rule book – something that is highly recommended when you are buying a franchise – follow guidelines well.
My failure was due to various reasons, mainly false expectations (although my franchisors didn’t promise me anything,) mismanagement (we hired the wrong employees,) and… the tipping point.
The tipping point?
Yep. When I started two franchise units, franchise industry in my country is growing well. But it’s approaching the tipping point. The “tipper”? The global economic recession. Then like roller coasters, my franchise units went down the slope rapidly – and went out of business.
Yes, I follow the wrong advice and was not spending enough time on understanding the cycles in the franchising trends (there is business life cycle on every single business niche.)
So, you must not do what I did: Trust everything to my franchisor. What you should do is to do your due diligence – find out the prospects. Read trends well – is the bubble going to burst? Is it a long-term trend? Is the ups and downs in the business life cycle extreme? Is it seasonal? Is it a fad?
So many questions you need to answer, so little resources to help you find the right answers.
There are white papers and research reports, but those are not for every entrepreneur. But fear not, while those are often difficult to discern, there’s a new trend that can be beneficial for the rest of us: Data visualization. White papers, reports and infographics – those are enough to get you started!
Free franchising white papers, reports and infographics for you!
To help clearing the mist for you, I would like to recommend these resources to help you educate yourself about franchising, the pros and cons if it and the future trends…
- Franchise Research and White Papers from FranchiseDirect
- FranConnect white papers
- IFA’s Linking Franchise Success with Economic Growth and Net Job Creation white paper
- FranchiseInc white paper on Slideshare
The Franchise Revolution
This infographic from Liberty Tax takes a look a the growing business model of franchises and why they are important to our economy
Choosing a Franchise Flowchart
Find out how to choose a franchise that is right for you with our nifty flowchart!
The Evolution of Franchising
Sonus has used their expertise to dissect the evolution of franchising in an infographic, which gives a breakdown of franchising statistics.
Franchising in America
Franchising in America, an informative infographic developed by MDG Advertising, illustrates the road to economic recovery, spots the top trends and keys to new growth, charts the common challenges franchising faces today, and adds insight for the future.
Franchises and the Economy
Few people realize how critical franchising is to our economy, but as the infographic illustrates, some of the most celebrated brands in the U.S. today were launched during times of deep recession.
Any resources to add? Please share yours by leaving a comment below!