The Beauty of Franchising
By Gina Petrone

Several years ago, while vacationing in Cancun, I had to decide where to go to dinner one evening. There was a wide variety of restaurants to choose from but I finally chose Pat O'Brien's for two reasons: 1) I recognized the name immediately and 2) I had eaten at Pat O'Brien's once before in New Orleans and had a wonderful meal. Anyone who has ever been in strange surroundings will understand how comforting it is to find a name you recognize. You know what to expect from the service or product and that's the beauty of franchising.

Franchises are all around us&emdash;homes are bought and sold through franchises. Our cars are purchased, tuned, and washed through franchises. We can have our hair cut, clothes cleaned, pets cared for all in franchised businesses. We can travel from one area of the world to another through franchised businesses.

Franchising is a system for teaching people how to succeed in business. It is a method of marketing a product and/or service which has been proven successful and used in a wide variety of industries. The word "franchise" literally means to be free. In this sense, franchising offers people the freedom to own, manage and direct their own business. However, as with any freedom, there are responsibilities.

The first responsibility for franchise ownership is to assess your reasons for going into business. If you're bored and feel you need a change or you're tired of having other people tell you what to do, then you should think twice before investing your time, money and energy. Operating a franchise requires more than just a need for change or the desire to do as you please. A franchise requires a total commitment of your time, energy and financial resources.

Start by listing every reason why you want to purchase a franchise, no matter how absurd it might seem. Maybe you just want to be a billionaire. There are no right or wrong answers but some are better than others. However, be aware of trade-offs. For example, if you're looking to break out of the 9-5 daily routine, a franchise may replace it with a 6am to 10pm routine.

Next, look at your own personal characteristics. There are many sources to help determine if you have what it takes to be a successful franchisee but some questions you might want to ask yourself include: Are you a leader? Do you like to make your own decisions? Are you willing to comply with the provisions outlined in the franchise contract? Do you like competition? Are you prepared to work 12-16 hours a day, six days a week and maybe even on Sundays and holidays? Do you have the physical stamina to handle the workload and schedule? Do you have the emotional strength to withstand the strain? Is your family willing to go along with the strains that they, too, will inevitably bear?

If you answered "no" to any of these, don't despair. It doesn't mean you wouldn't make a good franchisee but only that you may have to acquire these skills or hire personnel to supply them.

Certain skills and experience are critical to the success of any business&emdash;primarily basic managerial or supervisory skills. Will you be able to determine an applicant's skills when hiring personnel? Have you had any business training? Have you ever worked in a business similar to the franchise you're considering? Are you willing to delay your plans until you acquire the necessary skills?

There's more to running a Mrs. Fields' Cookie franchise than baking cookies or changing oil for a Valvoline franchise. Once you've conducted a self-analysis, discuss your results with your family and friends. Their feedback can help you make the right decision. If you all agree that you have most of the skills needed to operate a successful franchise, then you should feel comfortable preceding with your plans. Otherwise, consider delaying your plans until you are better prepared. However, it's important to be honest and objective with yourself. After all, it is your future.

Remember that a franchise company is only as good as its franchisees. If the franchisees don't make money, the franchisor won't either. To become a good franchisee, it's important to understand your reasons for going into business and to determine if owning a business is right for you.