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Page 140 GO IT ALONE!
- Franchisors provide valuable training and support structures.
Despite these benefits, I almost never answer a question about purchasing a franchise by saying “Yes, that’s a terrific idea.” Here’s why: - Franchises are inherently all about following someone else’s business ideas and rules. Franchisees lose out on the most valuable element of a go-it-alone business—leveraging their unique talents—though there are rare exeptions.
- The many rules associated with franchises generally mean that franchisees have simply traded one boss for another. The Wall Street Journal chronicled the difficulties of one franchisee, in his relations with the franchisor, with the headline “Be Your Own Boss with a Franchise—Not Quite.”
- Franchises inherently have little flexibility. Franchisees are betting that a “proven” business will, in today’s ultracompetitive world, remain a success. Franchisors typically allow franchisees only limited creativity in building their businesses.
- Franchises, like typical businesses, often require more upfront capital (for the purchase of the franchise license and to get the business started) than ought to be necessary, long hours working at a physical location, and multiple employees. The go-it-alone approach generally turns out to be a far better use of your time, energy, and capital.
- The psychic rewards associated with operating a franchise can be limited. In the article “10 Things Every Franchise Owner Should Know,” Entrepreneur magazine listed this question first: “How much intellectual stimulation do I need in my work?” The article went on to say that “the vast majority of franchises involve basic retail and service businesses
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GO IT ALONE! Copyright 2004 by Bruce Judson. Reprinted by permission of HarperCollins Publishers. All rights reserved.
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