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Practical, Pragmatic Preparation
By Mike Banks Valentine, Wed Dec 7th
Franchising 101: The Complete Guide to Evaluating, Buying andGrowing Your Franchise Business Edited by Ann Dugan, Published by the Association of SmallBusiness Development Centers (ASBDC) Cooked up by CPA's, Attorneys and Insurance Brokers, with a dashof disgruntled franchisee and a pinch of fatherly advice from afranchisor, this utilitarian dish is nothing if not healthy.With a steady diet of this recipe, potential franchisees willleave the table full and satisfied and yearning for a VERY richdesert to make up for all the pragmatic, reasonable andintelligent ingredients used to prepare this three course meal.
Course 1: "Choosing Your Franchise" opens with a light salad offranchising history explaining how Singer Sewing Centers werethe first franchisor in 1858. There are tales of earlyautomobile dealership franchises, oil company and servicestation franchises, and motel chain successes that lead to theexplosion of the franchise phenomenon in the 1950's and 60's.The bulk of the color is made up of tart slices of Ray Croc'sestablishment of the Franchise staple, McDonald's. With somedressing made up of a bit of "Good News Future" discussing theestablishment in 1992 of the American Association of Franchiseesand Dealers or AAFD, (the equivalent of a Franchisees union) totilt the flavor toward sweet. There are croutons here to add texture and variety, warning thatyou must be very clear that there is a large difference betweenan entrepreneur and a franchisee. It is simply stated that ifyou spend more time thinking about how things "could or shouldbe" then it is likely you are an entrepreneur and thatfranchising is definitely not for you. Predefined trade dress,business practices and required equipment, signage, etc., areeach carefully chosen and non-negotiable by the franchisee. Onceagain, the AAFD proudly spices this ingredient defining newlynegotiable items of contracts and leases while clearly statingthat the Franchisor maintains the upper hand in all cases. >From the initial colorful history right into the bland body of"how-to" information through helping the potential franchisee todetermine the selection, research, pricing, purchasing afranchise and choosing location and leasing details. Finallythere is the tart flavor added by a none too happy franchiseewho thought long and hard but ignored danger signs in acquiringa business she had decided on before her research told her thatthis
was a sour deal. Course 2: "Acquiring your Franchise" is the main course andwhile definitely healthy and well prepared, it is something youread because it is good for you, not because you like it. Thiscourse is made up of a discussion of another acronym, the UFOCor Uniform Franchise Offering Circular. This is a federallymandated document outlining 23 precise ingredients that must gointo this course of the meal. If you are purchasing a franchise, then this will always be themain course and will always have these ingredients. Twoattorneys walk you through the preparation of the franchiseagreement, lease negotiation, incorporation, cash flow, banking,loans and business plans. You know you must finish this blandcourse, but yearn for some spicy condiments that just aren'tavailable in this healthy, well-balanced meal. Course 3: "Managing your Franchise" is a natural side dishdiscussing the managing, motivating, hiring and firing ofemployees. The body of this dish is made up of more healthyrequirements of market research, taxes, insurance, accounting,marketing and business management practices. This course isspiced a bit with the fatherly advice of a franchisor whobasically suggests that franchisees should respect their eldersand be good kids and they will be rewarded with favoritism. Altogether I'd have this meal if the only other choice were thebland bread and water of a nine-to-five work-a-day routine, butwhat it all comes down to is that operating a franchise isserious business, that it takes money to make money, and that itwill clearly be very hard work. There are the benefits such asmanaging your own time, doing what you enjoy, scheduling yourown vacations and making major decisions without a boss hoveringover you. This hearty meal will be very good for you if you've decidedthat is the career path you wish to follow. Nothingis left out of the recipe and there will be plenty of goodinformation to fill your financial plate. After you clean thedishes and make your decisions you'll definitely want to goelsewhere for desert because 101 offers up onlypragmatic, practical fare with no coffee or desert on the menu.This is the hard work without discussing any of the rewards totantalize you and only a sad tale of one unhappy franchisee tofeed your appetite for possible self-fulfilling careers. About the author:Mike Banks Valentine WebSite101 "Reading List" WeeklyNetrepreneur Tip Sheet Weekly Ezine emphasizing small businesson the Internet Subscribe by e-mailto:WebSite101-subscribe@listbot.com
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