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The Secret of Monster Franchise Success as a Franchisee: Move Deliberately and With Patience

by Michel Leconte

The great news about a franchise business opportunity: Franchises which are well-considered and conceived by the correct parent franchiser are tailor made for easier, bigger, and more sustainable success than a non-franchise opportunity. That advantage isn’t to be taken lightly.

Business can be two different things to two different people. To the ill-prepared or ill-informed, it can be failure waiting to happen. To the properly instructed and fully apprised, it stands a super chance of being the greatest investment you could ever make. Where there once was drudgery and uncertainties working for someone for less then you are worth, there is now freedom, opportunity for limitless growth, passive income, and the control you always lacked in a traditional job.

The key to remember is that a franchise opportunity particularly has an upside for the achievement of those positives faster and to a much more prosperous level. If you take nothing else from this article just remember that the myriad of great advantages in having a franchise are the function of a successful franchise, not from simply buying into a franchise.

The comforting news is that in a franchise this build-up process to success is much more die cast and paint by numbers. A good franchiser will understand the pitfalls that could bedevil you as a franchisee and will have a tested and proven path laid out to better insure success. On your end, consider exercising some of these basic approaches and strategies to maximize your franchise opportunity.

1. There is a contract which often contains a long disclosure document where it is spelled out what you as franchisee and the franchiser must do to make this work. This document is usually quite detailed and voluminous (aka many pages). You must understand it front to back, and top to bottom. The mindset to be avoided is one of excitement to get started getting in the way of being fully-informed. There are a lot of similarities between a house closing and a franchise agreement in this regard. Don’t rush and definitely ask any and every question that springs to mind. Seek clarifications in writing. If it isn’t in writing, it didn’t happen.

2. Make sure you have a lawyer with a business contracts specialty, preferably one that has worked on franchise agreements. This is money you can’t afford not to spend.

3. This one seems obvious and is easy to do: contact multiple current franchisees. Here’s a good rule of thumb: When you think you are satisfied: contact 3 beyond that. The more people you talk to, the better feel you will get for this franchise opportunity and events you aren’t currently contemplating. Consider both short and long-term franchisees, ones that have multiple locations and ones that have a single franchise, and seek input from struggling as well as successful franchisees.

4. Setting aside reserve money for the early days and unforeseen expenses is a must. Ask other franchisees how much they recommend and then consider having minimum 25% more than what they tell you for use in the business and to maintain your personal expenses while the franchise gets up to profitability.

5. Be a master of your market and the marketing side of your business. Take the extra time to fully understand your market demographics, population trends, competition, and benefits/drawbacks of your location. This is a great place to ask the successful franchisees in your potential franchise what exactly they did to feel comfortable with their potential market prior to buying in. The successful franchisees will very likely love playing the role of expert. Franchise marketing also means having a full understanding of the franchisor’s rights and responsibilities in marketing. Make sure you are fully comfortable with what they will be contributing as it is laid out in writing.