Posted on Sep 23rd 2018
Contemplating owning a franchise is a decision that should be made with your eyes wide open.
At Romp n’ Roll, we spend time speaking and sharing information with potential franchisees to get to know each other. Together, we discover if our goals are in alignment, and if we are well-matched professionally.
Romp n' Roll's Director of Franchise Development, Rachel Stender, advises, "It's all about the fit between franchisor and franchisee." Rachel knows how important this professional compatibility is for "mutual, long-term success."
Our dialogue also prepares candidates for the realities of operating and owning a franchise.
Sometimes, emotions and excitement can cloud one's vision. We love when franchisees get excited about our business! We just need to make sure their enthusiasm doesn't cloud their vision.
You, too, may be attracted to the idea of owning a franchise, or a particular business concept. That's great. Still, it's critical to exercise due diligence to debunk any misconceptions you may have about owning a franchise.
Here are the most common franchising myths I have heard over the years:
All franchisors have basic guidelines and systems to follow. These help their franchisees successfully sustain and grow the business model. However, this does not mean that the franchisor will make every single decision.
Franchisees are responsible for making many decisions on a day-to-day business regarding daily operations, personnel, management, and promotion.
Franchisees receive support and training from their franchisor. However, they have the independence to make decisions that directly affect the success and profitability of their small businesses.
With a proven business model and the support of an established franchise, entrepreneurs have a head start towards achieving success.
However, it is naïve for potential franchisees to believe these advantages are some sort of a “get rich quick” scheme.
It’s important to do your homework. When analyzing a franchise’s financials, don’t look at top line revenue figures only. Factor in liabilities such as operational and franchising expenses, loan payments, and insurance premiums to get the whole picture.
When potential franchisees express this misconception, I am always happy to allay their fears.
At Romp n’ Roll, we give entrepreneurs the framework and protocols that have made our brand profitable. Yet, it’s totally up to them to create their own success.
Our most successful franchisees are those that have enhanced our brand with their own creative ideas. In fact, we have even implemented some of our franchisee’s ideas into our marketing, sales and programming initiatives.
This type of entrepreneurial spirit is just what we look for in a potential franchisee. While we encourage following our proven method for success, there are opportunities for creative thinking.
Thinking outside the box helps build our brand and brings personal satisfaction to our most inspired franchisees.
The details of terminating your relationship is probably the last thing you would think about before entering into it!
Still, it’s important to know—and be comfortable with—your exit options, along with any state statutes regarding termination.
Here are some areas you should investigate:
Franchisors have invested so much in creating and building their brand, they rightfully want to protect it. Your franchise agreement should stipulate how and when you can work in the industry should you leave the franchise network.
There are several reasons a franchise agreement can be terminated, according to the law. These “good causes” may be a failure by either party to uphold obligations set forth in the agreement.
“There is no substitute for hard work.”
— Thomas A. Edison
Being actively engaged and working hard for your own business seems like it should be a no-brainer. Yet, sometimes when that business is a franchise, people think differently.
I have come across some candidates who don’t fully understand that they need to work at making their franchise successful.
These folks mistakenly believe the business is a simple “plug-and-play” operation. While we do give our franchisees many “keys” to success, it’s up to them to drive themselves there.
As a small business owner, remember that you are in it for more than just a paycheck. You must be prepared to work hard at growing your business every day to sustain profitability and build equity.
Don’t let misunderstandings or myths about franchising stop you from achieving your goals. Do your research, talk to current franchisees, and consult with franchising advisers to get the facts about franchising.
Michael Barnett is the Co-Founder and CEO of Romp n' Roll. In addition to leading the Romp n' Roll management team, Michael is an active member of the International Franchise Association, the National Association for the Education of Young Children, and serves on the Board of Directors for Connor's Heroes and Juniata College Center for Entrepreneurial Leadership. He and his wife, Babz, were featured on the first season of ABC-TV's Shark Tank.