Your Franchise Choice and Risk

If you were to ask a franchise candidate, "Why do you want to start a business?" You are first going to hear such things as...

I want more control
More flexibility
More time with the family,
Better work/life balance
...and I want to keep more of what I work so hard to generate

Or, put another way, many people enter franchising because they believe the effort they expend to create riches for others would be best spent in generating wealth for themselves...or, at least MORE wealth than they are currently accumulating from their efforts in their chosen and current career.

But I do want to point out that in my experience in speaking with thousands of potential franchisee's over the last twenty-six years it is rare that wealth is among the top three reasons. Why? Because it is the things about life they value more than the aggregation of monetary gain that has fascinated them and has them enthralled. Typically moolah isn't the reason people invest in franchises.

My wife hates tools and especially electric tools. My wife however has the fanciest glue gun you could imagine. Why? Because she is a crafts person and loves creating things. If she could do it without the glue gun she would. She isn't in love with it. She is in love with the results she gets from it.

Money is not the end result. How do we know this? In previous economic times we watched franchisees walk away from high paying jobs everyday and walk into business which may throw off negative cash flow for six months, a year, two years and yes, even three years! To those who will NEVER go into business; who will window shop until the second coming, yes, they do in fact pay to go to work. They do it because it provides for them something else. They do it because the work provides different incentives.

One set of skeptics will tell you they were foolish and just didn't know better. And that is true of a very few. Guys, come on now, geez...information dissemination about experiences and expectations in a franchise business are a few mouse clicks and a few phone calls away. No, that's not it for the masses. Others, will say they were deluded into thinking somehow they would succeed.

It's called hope. It's called a positive attitude. It's called believing if you do the right things you will get the right results. But, it is also called, "It was worth it to me and I'd do it again if given half the chance!"

What appears to be the biggest key is the lifestyle they learn many entrepreneurs do in fact live. This has caused some to take a lateral move in terms of dollars and sense and for a few a pay cut. They all hope to be doing better. Yes, of course, they want to earn more. However, the almighty dollar isn't the motivation. A different Lifestyle drives the decision.

When the experts on the various forums trash franchising based on their financial genius and on purely economic investment criteria, they exhibit an incredible level of ignorance regarding the human condition. They want to objectivize franchising as a comparative economic proposition. It isn't. It never can be nor should any human endeavor. Franchisees understand this. The geniuses of investment strategy appear not to.

Whatever your profession or job or enterprise you enjoin in order to keep body and soul, home and hearth together needs to generate a living for you. But money won't hold your attention and keep you motivated at any level without a significant degree of personal satisfaction, passion, personal success (however you individually evaluate that) and the opportunity to use your time and talents in a way that suits your vision of a life well lived!

A well-known franchise expert, Joe Matthews says it likes this, "Franchisors need to be skilled at identifying the "Total Quality Life" franchisees were designing when they purchased their franchise in the first place, and helping franchisees structure their businesses to deliver this life."

Amen Joe - that work needs to be front-loaded into the development of the concept and needs to be checked off along with the rest of the elements that the franchise company uses to define "success" in the process of supporting the franchisee's endeavors.

For me, living the way I desire to live; the way I imagine the use of my time and the flexibility I envision would be "living rich" (though truthfully it wouldn't change my house, my car, my toys or other accouterments nary one iota!) It is true that many (perhaps most) franchise opportunities will not create long term fabulous wealth. Though I also guarantee that is a function of imagination, determination and resolve more-so than a financial expert cares to account for when providing their analysis. However, that usually isn't the franchise buyers' goal.

"I wish for you a good life - more than this what could I wish? I pray you peace and joy and love and laughter served by the dish - and may this life well-lived reflect back as an image in the mirror to the one who lived it as my friend I will cheer both him and her"

You can make significant money in franchising or many other forms of endeavor. It's just that if this is your goal you miss the point of doing it at all - IMHO

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. or direct office 480.838.1641