13 Reasons Franchisees Are In Business and More...

The IFA (International Franchise Association) did a study back in 2006 asking several hundred first-time franchisee's what were the reasons they decided to get into franchising as opposed to other business models. Here is their list in order of priority:

* Reduced risk of failure
* Turnkey operation
* Proven products/service offering and systems
* Standardized financial and accounting systems
* Collective buying power
* Supervision and consulting within the business system
* National and local advertising programs promotes branding
* Uniform packaging, branding and recognition
* Ongoing research and development
* Financial assistance
* Site selection guidance
* Operations systems and manuals previously developed
* Sales and marketing assistance

When pressed to discuss if these were the reasons they continued in operations 80% said no. Virtually everyone said they realized other benefits and had re-prioritized the initial value they put on these 13 items. Almost everyone realized after the fact the value of being involved in a system that united not just brands across geography but also the value of having a "comrades in arms" mentality of the franchisee system. Many valued this hidden factor as the most significant value of their franchise system.

The second significant factor takes into account several of the aforementioned specific values; a franchise expert organization that provided a look both at the industry on a perpetual basis and had a more universal view of trends in the market place they would otherwise miss simply because they are so locally involved in day-to-day operations.

There should never be a singular factor that creates the proverbial straw and tilts one over into franchise business ownership. But finding a franchise that meets your needs and fulfills your business ownership priorities would include many of the listed items. Just remember to get to know some of the franchisees to get a sense of the culture. It can be the most valuable reason of all.

John is a 26-year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates and can be reached at docfranchise@gmail.com.