July 29, 2009
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Business Forecasting 2012
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I am on the hunt. I would like to find a franchise that:
1. Has an investment of $50k
2. Doesn’t require too much sales ability
3. Doesn’t require any inventory
4. Is open Monday Thru Friday from 9:30AM - 4:00PM
5. Has no more than two skilled employees
6. Has a completely automated money collection system
7. Only charges a 2% royalty
8. Will buy the franchise back if things don’t quite work out
9. Insists on financing my start-up costs, and offers a no-interest line of credit for my working capital
10. Is totally turn-key
11. Exists
Would you care to join me?
So, where do you think we should start our little expedition
How about the franchise directories?
The world of internet franchise and business opportunity portals is vast.
We’ll find “Turn-key” franchises that supply specialty gloves to the industrial market, a service franchise that wreaks havoc on local mosquito populations, a specialty vending machine opportunity that has seemingly cornered the market in energy mints, and a “sports marketing” opportunity for local school systems.
If we take our search to some of the more “official” looking websites, we can check out opportunities that run the gamut from multi-unit restaurant and retail offerings, to franchises that offer services for pets, seniors, or children. {Not all at once!}
There are also more personal ways to find out about opportunities. Like when you are entertaining out of town friends or relatives, and one of them says;
“Back in Philly, there is this pizza place that just started to franchise. It is amazing. I know the owner, and his pizza is really special. You should buy one, and bring it here.”
Of course, there are numerous franchise and business opportunity magazines, expos, and even seminars on franchising, most designed to get you interested in specific franchise concepts.
I searched through all of the resources above. I did not find any that matched the list up above. {Did you think I would}
Now, let’s search for a perfect franchise based on the franchise model itself.
When I think of a perfect franchise, I think of the following things;
- Major brand power
- Constant innovation from management
- Uniformity
- Solid training program
- Extremely profitable franchisees
- Engaged in social media*
{* This is a new, but required part of franchise success}
Now that you have seen my criteria, out of the 3,000+ franchise concepts offered in the US, do you have any franchise organizations that come to mind? I have one.
The franchise standard is McDonald’s. They certainly have serious brand power, are very innovative, their stores are uniform, they have their own university for training purposes, are extremely profitable, according the this article, and McDonalds certainly believes in the power of social media.
Now, to purchase this franchise standard, one needs up to $300,000 of non-borrowed money, plus the ability to borrow significantly more from a lending institution. McDonalds is very choosy about awarding franchises, and a significant net worth may not be enough. You have to willing to work in the business, not be a semi-absentee owner.
So, is McDonald’s possibly the perfect franchise? Based on my criteria they are, but the real question you need to ask yourself is this one;
“Is it the perfect franchise for me?”
In other words, is the franchise you are thinking of buying perfect for you? Will it meet your criteria? Have you defined your criteria? Your criteria should include things like investment comfort level, hours and days of the week required, growth opportunity, and an exit strategy that will let you enjoy the fruits of your labor- the monetary equity you have built.
In summation, if you can find an opportunity that meets all or most of the criteria I listed above, and your own criteria, you may find yourself in a perfect franchise. And that would be the perfect situation.
* * * * *
About The Author: Joel Libava is a Cleveland, Ohio franchise consultant and marketer. He blogs at The Franchise King blog. His website is The Franchise King.
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Joel Libava 2 years 5 months and 30 days ago
Martin, If one can "sell.,"