Franchising 101

Do You Have aFranchisee Mindset?

Owning a small business was once the exclusive domain of the risk-takers of the business world. The true entrepreneur had a distinct flair for creativity, innovation, and vision. This individual knew how to operate outside-the-box and how to make things happen.

Many times, there was little choice as from an early age he would be responsible for shaping his future and for making it on his own. Formal education was usually limited and often just a far-fetched dream. Corporate life was not even an option. Besides, he couldn’t be told what to do, how to do it, and when to do it.

CHANGING WITH THE TIMES

Well, times have changed. These days, people change jobs more often than in the past. A new job—or even career—is the norm rather than the exception. An advanced degree isn’t necessarily a fast track to success. Many professionals seek work-life balance. Money is no longer the sole source of gratification. So many people who want to control their own destinies are increasingly choosing small-business ownership, as opposed to leaving their futures in the hands of Corporate America.

WEIGHING THE OPTIONS

This is where the road gets tricky: There are many ways to go out on your own. You can start your own venture and assume total risk, or you can limit your risk by investing in a franchise and be in business for yourself but not by yourself. Many potential business owners ask themselves, “Can I achieve my goals and objectives as part of a franchise system?” “Do I have what it takes to be a franchisee?” “Am I willing to follow and adhere to a franchisor’s business system?”

These questions are usually easy to answer. Beyond realizing the viability of a franchise brand, as addressed in due diligence of the franchise concept itself, the answers lie in understanding the mindset required to be a franchisee. A franchise is almost definitely not the right choice for a business maverick or renegade. Certainly, there is an important place in business for these unique innovators—without them we wouldn’t know Apple or Dell Computers. Even McDonald’s, as probably the greatest franchise of all time, which stormed through the country under the leadership and direction of a true maverick, Ray Kroc. But even he would not have been successful without franchisees who were required to strictly follow McDonald’s system without fail. No questions asked and no room for negotiation. Does that sound like you? Then you may have the franchise mindset, after all.

Paul Segreto is a recognized entrepreneur, franchise and small business professional. His expertise includes startups and turnarounds, strategic planning, business and franchise development, branding, social media and digital marketing with primary focus on restaurants and service-driven businesses.

Segreto founded Franchise Today podcast in 2009 and Franchising & You podcast in 2018. He is CEO of the Franchise Foundry. Contact Segreto at paul@franchisefoundry.com or visit www.franchisefoundry.com