Good Prospects do Their Due Diligence

Moneybags121708[1]Franchises cost money--there I have said it.  You pay a franchise fee, and usually a royalty of about 5% and an ad fund fee of 2%.  There is a reason this--you are "buying" a name, a brand, or the opportunity to get in on the ground floor of a coming brand--if, and only if, you help the system grow.  The training, the tools. the outsourced vendors like ad agencies, PR firms, the baker! This is what you are buying.  If you are a new franchisee still struggling go to your franchisor for help and guidance.

Too often about 1/3 of the franchisees in a system (we don't know why but it seems this number is pretty consistent) complain and blame their franchisor for all their problems.  Sometimes it was just a case of poor due diligence on the part of the franchisee.  They didn't get enough info before they bought--they didn't really see and "feel" the company and the concept--was it something they knew they could do for many years to come?  Sometimes not.

A good franchise prospect does their due diligence on the company and with the zees--and now I suggest they should do this on themselves too!!  See the lifestyle that might lie before you for 10-20 years. Is this the real you?  Your family on board with it?  Just because the pretzels look and smell delish doesn't mean you should be selling them after smelling them!!  Think things over carefully. Like a marriage, you and your franchisor are in for the long haul--hopefully.

For franchisors who have a lot of these 30%--look into Franchise Rescue Team.  Started by attorney Anthony Calamunci, this is a group comprised of several long time franchise experts that will come in for a flat fee and get these franchisees moving up or moving out!