Franchising Myth #1
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by: squonk17
This is the first in a series of 7 articles about the myths of franchising. These myths are the things that some franchisors would like you to believe, because it makes it easier for them to sell you a franchise. When you understand these myths, you'll be in a far more powerful position to take control in any franchise research or negotiation.
The phrase "a turnkey business" makes it sound as easy as jumping into your car, putting in the key and starting the engine. In fact, most franchises will deliver your franchise materials, give you some training and then you're largely on your own. There's a huge amount of work that you'll have to put in – early mornings, late nights and hard days to earn your way into successful business ownership.
But worse than this, if the franchise has not invested over a long period to develop great training, operational systems and marketing materials, you will find that it is more of a turkey than a turnkey.
It's our opinion that probably only some 10-20% of franchises available today can truly be described as a turnkey business. The rest range from being pretty good right down to downright terrible businesses that are so bad, they should be illegal. Unfortunately when you're talking to franchise associations, consultants, professional advisors like bank managers and so on, they will all repeat the same old rubbish that a franchise is a turnkey business.
To understand the truth behind this, let's just take a look at what a franchise really is, to take away some of the mystery so that you can understand it for yourself. We'll do this by explaining how a franchisor might go into business. Simply put, they write down what they do in their business every day to find new customers and service them effectively.
This is great right up until you come to do it for yourself. Then you discover that the franchisor has an outgoing personality and a background in door to door sales. While it worked for the franchisor and would be ideal for others just like him, most people find it really tough to go selling door to door and so would crumble in this franchise. Is it any less of a turnkey business though?
And that's precisely what's so difficult about the concept of a turnkey business -- you have to personally "turn the key" to make it work. And if turning that key is something you find uncomfortable or even totally abhorrant, then no matter how well the franchisor did, you will struggle to make any money at all. It's at this point that the dream of a turnkey business becomes your worst nightmare, because you've invested a lot of money into something that doesn't fit you right.
The trick to buying a good franchise is to figure out what you personally are willing to do and to find some franchises that fit that model and suit you properly. If you fail to do this, you could be in for a very rough ride indeed.
The Bottom Line…
Expect to work very hard to get your new business going, whether you buy a franchise or not, it's going to be tough!
About the Author
The Franchise Opportunity Guru is a website run by former franchisees to help people who want to buy a franchise. You will find unbiased information about all kinds of franchise opportunities there, including an article with 5 simple steps to choose the best business franchise for you.
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