Variety Is The Spice Of Life!
By Geoffrey Stebbins

 "I don't want to buy a franchise", said the mid-management executive. John Doe was just released from his 10-year position with a major corporation. "I don't want to be told what to do and when to do it". "If I have my own business I want to be the boss".

Misconceptions, misconceptions, misconceptions, so many people think that all franchise companies fit the same mold and all opportunities in franchising have the same structure.

John Doe, now out of work was looking for alternative employment and was presented with the option of self-employment in addition to looking at re-employment. The first misconception of "I don't want to spend the rest of my life flipping greasy hamburgers", was overcome with the convincing argument that the owners of most businesses are required to manage and market the business; not necessarily doing the actual manual work.

The next objection of not being your own boss was overcome as a direct outcome of the idea that the owner was not necessarily involved in the direct operation.

There are many varied opportunities within the franchise industry to fulfill the personal needs of most people. The options provide variety as being the spice of life.

We will discuss some examples of some of these opportunities.

1) Investment only opportunity

2) Part-time opportunity

3) Hands-on with a single unit

4) Multiple units opportunity
a. With a single brand item
b. With dual brand items
c. Multiple brand item

5) Regional opportunity

6) Master franchise opportunity

The range of various possibilities by computing the possibilities of the above with

a. home-based businesses
b. retail outlets
c. office environments
d. industrial areas
e. distribution networks

And further the combinations using different industries such as

I. service

II. product

In areas such as,

q. automotive
r. fast-food
s. employment agencies
t. home improvement
u. business services
v. medical
w. etc., etc.

We see with the large number of variations of options that it is not necessary to think of franchising as a singular structured system.

There are some franchisors which provide a management program for absentee owners who wish to utilize franchising as a form of investment. These franchisors will normally charge a management fee for such a service. The objective of such an investment would be,

1. equity appreciation
2. the possibility of a greater return on investment than would be available through other investment means
3. greater and more personal control on their investment

Absentee ownership will normally produce a lower return than what's normally available if a owner were operating his own business. For however motivated an employee may be and for however many incentives given to motivate an employee; nothing motivates better than operating your own business.

An entrepreneur may invest in a franchise with a franchisor that does not have such management programs by hiring his own manager. However, many franchisors will not permit such a practice. Many franchisors insists upon owner operated businesses. There are still other franchisors that will permit absentee owners provided the franchisor maintains the right to train and/or supervise the manager.

This group of absentee owned franchises is a very favored option for the executive who does not want to give up his job in the corporate world, but would like a little insurance of something behind him in case he does lose his job.

There are a number of franchises that can be operated on a part-time basis providing an alternative for the enterprising hard working individual who may wish to keep his job, part-time, while developing his own business. This part-time opportunity also fits the needs of many retirees who wish for a little extra income to supplement their retirement, while at the same time providing them the flexibility of hours to work when convenient and still have plenty of time to enjoy their retirement.

All franchises are not suitable for such part-time operations and many franchisors will refuse to sell their franchise to anyone not wishing to put in full time on the job. Many home-based businesses do fall into this category and can be operated on a part-time basis, as well as some other categories such as retail, which can be managed by a manager during the day while the owner manages the business in the evening.

Certainly the largest percentage of franchisees fall into the category of hands-on operations with a single unit. The amount of control the franchisee has in his own business is wholly dependent upon the type of franchise company he chooses. There are some franchisors who exercise extreme control allowing for very little freedom for independent thought within the operation. They have a successful formula and they wish their franchisees to follow this formula without any deviation. There are other franchise companies who believe ideas and concepts of the individual entrepreneur only add to their own expertise to provide for a highly successful operation. These latter companies provide many channels for free expression, provided the franchisee follows the basic formula.

Hands-on a single unit could mean that the franchisee is a one person business where the franchisee operates, manages and markets the franchise. One man operations are most prevalent in home-based businesses. They could have a more than one man operation, where the franchisee hires employees using the concept - making money off of other people's labor. Single unit operators can remain as such and be successful, or they may grow and develop into multiple unit operators.

Franchisees may start as single-unit operators and grow into multiple-unit operators. However, many highly ambicious entrepreneurs successfully negotiate a multiple store program at the initiation of the negotiation with the franchisor. Some franchisors even have a multiple store program written into their contract which offers significant discounts for franchisees wanting to make an early commitment.

Multiple stores however do not always have to be the same franchise company. We are seeing a trend today where two complimentary franchises are opened within the same location by the same franchisee. This trend is called dual branding. Where three or more franchises are combined together, is multiple branding. Each franchise exhibits its own identity and each compliments the other and provides the benefit of shared expenses and lower cost of operations.