Franchise Concern?

When I talk to someone who is considering buying a franchise I have many questions that will determine if they will be happy even being a franchise owner. For some people the right franchise will be a wonderful investment but for others starting their own business is a better choice. One big concern I have with selecting a franchise to own is whether they have corporate stores or offices. That means that every unit is not franchised and some are operated by the franchisor. I believe this is always a good thing and will help franchisees be more successful.

Having company owned units will allow the franchisor to see the day-to-day happenings and sometimes problems that occur in a unit. Without company units they can take aurveys or listen to input from franchisees but won't have that first hand experience in operating their original business. Some franchisees won't give honest input and some won't respond at all and suffer the outcome of something that could be improved. I suggest that if you are considering a franchise choose one in the industry you enjoy that has at least 2 company units, preferrably more.

One of the biggest franchises SUBWAY has "zero" company stores, how can this be? They don't know what goes on in a Subway store from early morning to late night (or think they do). If they had a few company units they would understand what's going on all the time and be able to improve or add new ideas they can test themselves (they are welcome to respond). Others I see with NO company units are house & carpet cleaning businesses. Maybe they don't like the work but will sell you a franchise? It's just my opinion but if a corporation can't operate a unit in their own business, why should you?

Other franchises with NO company units:

  Jiffy Lube                           Dunkin' Donuts
  Servpro                               Servicemaster
  Super 8 Motels                   Days Inn
  Jan-Pro Cleaning                Great Clips
  Ace Hardware                    The UPS Store
  Matco Tools                       Sign-a-Rama
  Minuteman Press                Molly Maid
  Chem-Dry Carpet               Fast Signs
  Heaven's Best Carpet         Weed Man
  Dryclean USA                    Marble Slab Creamery

By Barry Thomsen, business and franchise coach  www.idealetter.com