Joel Libava's Blog: The Franchise King Blog, page 91

Why Do You Want to Buy a Hot Franchise?

 

It never fails. Whenever I do one of my rather unique presentations on franchise ownership (like the one I just did in New York City), I get asked this question;

 

"Joel, what's the hottest franchise?"

 

I was able to convince my publisher to send me a few of my about to be released franchise books to the NYXPO For Business, last week. While I was signing a few books, a couple of the attendees asked me what I thought the, "Hottest franchises" were.  Since it's in the top 5 most common questions asked of me, I know how to answer it. (But usually not to the questioner's satisfaction.) Here's my answer;

 

"There's really not one hot franchise. There are certainly hot categories in franchising, and they tend to vary from year to year. In other words, there are certain franchise trends that you may want to investigate, and maybe even capitalize on, after doing careful research."

 

There's usually a look of disappointment in the eyes of those who asked the question, but my answer is truthful.

 

For example, I happen to like the Spring-Green Lawn Care franchise business opportunity. For one, I helped them set-up their franchise blog, and help them with some of their content. (Full disclosure; I got paid to set-up their blog, and I get paid to provide content.) If you've been following me for more than a minute, you know how picky I am. I don't just work with anyone. Also, I've known the folks at Spring-Green for several years.

 

Now that I got that out of the way, let me tell you why I like their business model-actually, their two very different models.

 

1. It's truly a seasonal business. If you'd like to have a portion of the winter months off, you can.

 

2. There's a real potential for significant numbers of repeat customers, year after year.

 

3. You can start the business slowly-they have a Flex-Start program to help people transition into the business.

 

4. They're super-friendly to our Military Veterans, and want them as franchisees. (The CEO is a Veteran.)

 

5. Spring-Green Lawn Care offers two ways to become franchise owners. Find out what they are.

 

______________________________________________________________________________________________________

 

To me, Spring-Green Lawn Care is a hot franchise. The 5 reasons above are why.

 

But, just because I think that it's a hot franchise business opportunity doesn't necessarily mean that you do. I happen to know a lot about how their lawn care business operates. I've been to their headquarters. I know the executives. I like them and trust them. I happen to think that way too many prospective franchise owners pass this opportunity by, because of pre-conceived notions. (One of them being that they'll be stuck behind some type of machine…some type of lawn-food spreader.)

 

If more would-be franchise owners would go further than a cursory one-minute website look-through, some of them could be moving a lot closer to a business that they would actually like being in. But, most don't. They don't dig in enough. It's too bad.

 

That's just one example. There are other, "hot franchises" around. But, "hot" to me, and "hot" to you, will almost always be a different.

 

One more thing; if a franchise business has been getting a lot of publicity, and happens to be selling a large number of franchises, that franchise business is usually perceived to be, "hot."

 

If you buy a "hot franchise" like that, is it possible that you're buying it too late?

 

Can you think of any, "hot franchises" that aren't anymore? 

 

Franchise Buyers; Please Get Rid of Your Big, Fat EGO

 

All of us have an ego; there's nothing wrong with it, because it helps us navigate through our wild and woolly world. We need to have self-esteem. (We all have it. Sometimes it just doesn't feel like we do.)

 

There are times when we need our egos more, like when we're trying to impress someone. There are also times in our lives when it's better to be a bit more humble; like when we really don't know as much as we profess to about a certain subject. Some of us use our egos as a kind of defense mechanism; we don't want others to know how much we don't know. Does that make sense? Have you ever been in a situation in which you, "acted as if" you knew more than you did, hoping like heck that you wouldn't be found out? I know I have!

 

Most of us don't like to admit that they we don't know something. It's uncomfortable. But, sometimes a simple little admission like, "I don't really know all that much about _____" can go a long way. Especially if it involves a major decision. Like buying a $250,000 start-up franchise business.

 

It's Hard to be Humble

 

 

 

It can be hard to be humble….

 

Here's the deal;

 

If you've never invested your own money in a business-a franchise business, you have absolutely no idea what you're doing.

 

It doesn't matter if ;

 

You've just been downsized from your $250,000 a year position as VP of Operations

 

You're the current owner of busy pizza shop

 

You're currently are or used to be in the franchise industry

 

You own a chain of hotels in the Bahamas   

  

(Club Peace and Plenty, Great Exuma, Bahamas)

Just the fact that there are over 3,000 different franchises to choose from should be enough to make you think twice about tying to figure everything out by yourself. Buying a franchise involves several different steps, and the first step has nothing to do with what franchises you're interested in.

 

As a matter of fact, the second step in the franchise exploration process has nothing to do with the franchises that you're interested in learning more about.

 

If you're already knee-deep in the franchise buying process, and would like to know if you're on the right track, please contact me. A simple 10 minute phone call could change everything.

"Joel, isn't that statement a little dramatic?"

Read what George and Regina wrote;

 

"We want to thank Joel Libava for helping us slow down, take a breather, and truly understand what is best for us. Joel was so right when he said buying a franchise is not for everyone. We thought it was a shoe-in for us until we learned more and decided to say 'hold on bobalouie,' this may not be for us after all. Our destination is yet to be determined, but I can say for sure we are much more informed today. Anyone thinking about buying a franchise needs to realize there is more to this than just wanting to own a franchise. Talk with ,'The Franchise King' way before you make ANY decisions, as he knows his stuff and helps you know yours, too. Joel truly is 'The Franchise King' and wears his crown well!!!" — George and Regina | Lexington, Kentucky 

 

 

The reason that you don't know how to buy and research a franchise properly has nothing to do with your lack of business sense, or your intelligence. It has to do with the fact that you've never done it before.  That's all.

 

 

Work with me; I can make things so much easier for you….

Here's What You Gain by Becoming The Owner of a Franchise Business

 

According to my friend, Ivan Walsh, this is what you gain;

"When you enter into their business, you gain by seeing at first hand how a successful business in run. Compare this with all the mistakes you are likely to make when starting your own business. When you learn how the franchise model works, you can use this to develop all types of products, courses, education products based on what you've learnt there. You can then go one further and setup your own franchise and use all the knowledge you've gathered. Again, compare this to starting a business with no previous experience."

 

Ivan wrote that as part of an interview he did with me, earlier this year. Read the rest over at IvanWalsh.com

 

Mistakes. We all make them. But, wouldn't it be nice if there was a way to avoid almost every mistake that's commonly made during the start-up phase of a small business? Wouldn't it be a game-changer? I think so, and that's why opportunities in franchise ownership excite me. (Most of the time.) And if you're seriously thinking of becoming your own boss, and feel that you're ready to own what you do, becoming a franchise owner could be right for you. You can start your journey right now. If you've already started to look at franchise ownership as an "option," I recommend that you clean off your franchise slate, so you can learn how to carefully select and properly research a franchise.

 

If you're ready to get into a business in which most of the mistakes have already been made, (which means you don't have to!) then stay with me. I'll get you there. Safely.

 

I'd like to be your teacher.

 

I'd also like to be your franchise guide.

 

Please sign-up for a free chapter of my upcoming book, so we can get started. (My book just came back from the printer, and I have proof.)

(Photo courtesy of John Wiley & Sons, Publisher.)

"The decision to become a franchise owner is a big one—you would be crazy to even consider making it without Joel Libava's years of experience in your corner."

— John Jantsch, author of Duct Tape Marketing and The Referral Engine 

 

Will You Use The Franchise System?

 

 

The franchise business model is a brilliant one. All you have to do as a franchisee is follow the directions…..follow the franchise system, as it's suggested. Simple, huh?

 

Unless of course you don't like to. Then, it's a lousy business model.

 

If you're fed up with the corporate world, the "idea" of buying a franchise…or becoming self-employed in any way, is an attractive one. If you're the victim of a corporate downsizing, even more, I'd guess.

 

Recently, I posed this question to you;

 

Should You be The Boss? Read why I asked that question in this short franchise blog post.

 

Not only must you decide if you're ready to become the boss; you have to decide what type of business you'd like to be the boss of. Both decisions are big.

 

In Become a Franchise Owner!, there's a test that I have you take. (It's a compatibility quiz, actually.) It's designed to get you thinking about systems. Franchise business systems, to be exact. The questions that I ask you to answer in the quiz will at first glance seem way too simple. But, are they?

 

Be Honest With Yourself

 

When you buy my book, and spend the 10 minutes needed to take my franchise quiz, I'll personally score your results. If you're honest with yourself when answering the questions posed, you'll know if exploring franchise ownership, with it's rigid business system, is truly in your best interest. I've said this before;

 

Becoming the owner of a franchise-type of business isn't for everyone. The reason that it isn't has to do with the title of this post.

 

If you're comfortable following someone else's rules…someone else's business system, franchise ownership is definitely an option for you to explore and learn about.

 

If you're really not into following someone else's system, you need to move on to something else. Maybe a non-franchise business opportunity would make better sense for you. I talk about those types of businesses in my book, too.

 

Learn what you can. About yourself. And about becoming the owner of a business. Best of luck!

 

Here are a few franchise systems to learn about.

 

 

 

 

I Could Have Earned More When I Was a Franchise Broker

 

That's right, folks.

 

I could have made a lot more money when I was a franchise broker.

 

It's not that I'm opposed to making money. It's just that there were a couple of things that prevented my income from rising much more than it did. Let me explain…

 

The franchise that I was with, (a franchise brokerage) had a specific business model. Their model favored local territories. In other words, the 50 or so franchise brokers that were a part of this brokerage franchise…that were scattered across the US and Canada, had specific geographical areas in which they could operate. On the surface, it was pretty smart; who better to serve local residents that were interested in becoming franchise owners than a fellow local resident? Except for one little thing;

 

Size.

 

If you won the geographical lottery, and happened to be born in or moved to a highly populated area, your income instantly increased. For example, the person who operated the office in New Jersey, had around 8 million people to work with…practically in his backyard. New Jersey's a very small state-land area wise, so only one office in existence.  The offices in Los Angeles, Philly, etc. were all busy, busy, offices. I call them "the lottery winners."

 

I lost the lottery.

 

My office was in Cleveland.

 

Now, without it sounding like I'm slamming my hometown, (I still operate my office in Cleveland) let's face it; Cleveland is not exactly a booming area, population-wise. Generally, people aren't moving here. In fact, the opposite has been happening for years; people are leaving. In droves. We were in a recession two years before the rest of country. (I guess that makes my city a trend-setting area.)

 

Some might argue that Cleveland and the surrounding area is the #18 DMA. Read The Plain Dealer DMA Report. So it is. I have to tell you though, it never really felt like there were over 3 million people in my area. (Not Cleveland, proper. Northeast Ohio.) I marketed pretty heavily during my time as a franchise broker. I had a decent amount of publicity. Lots of local referrals, too. I had a couple of good years. Never as good as the brokers who had The Big Offices, though.

 

Geography was one reason that I didn't earn more when I was a franchise broker. There just weren't a huge number of people locally that were interested in becoming franchise owners. Let me rephrase that; there weren't that many qualified people that were interested in becoming franchise owners. Which leads me to the 2nd reason that I didn't earn more as a franchise broker.

 

I turned away lots of people.

 

I could have met with a lot more people than I did. I would have made more money if I had. I didn't choose to, though.

 

Lots of people talk about being their own boss someday.

 

"If the timing's ever right, I'd love to own my own business, someday."

"I've always wanted to own an ice cream franchise."

"I'm sick of corporate America! I want my own business."

 

Those sentences were very common. (And still are.) But, just because someone says that they'd like to own their own business doesn't mean that they're qualified to do so. Does that sound harsh? It's not meant to. Hey, I'd really like to have a car like the one below for my summer ride. It doesn't mean that I qualify to own one.

 

(A Ferrari 458 Italia. 0-60mph in under 4 seconds.)

 

I turned away tons of people. For lots of different reasons. Some of the reasons were financial; their net worth's were a little light. Figure your net worth out before you look for a franchise to buy. I had people almost beg me to arrange a meeting with them, but I didn't have the heart to do it. They had enough money…well, they were right on the cusp…but, I didn't feel right about working with them, because I knew in my hear that they wouldn't be able to make it through their 1st year in business. Their money situation was too tight, in my opinion. (But usually not in their opinion.) These people weren't too pleased with me. (I knew that I was doing the right thing, so it didn't really bother me too much when they hung up on me.)

 

Another common reason that I had for not working with a prospective franchise owner had to do with their personality. (No jokes, please.)

 

There were several other reasons for me to turn prospective franchise buyers away; some had to do with the fact that we didn't bond very well. There were other instances in which I felt that the person on the other end of the phone was just kind of "fishing." These types of folks were just curious, but never really had any intention on doing something as big as becoming the owner of a business.

 

I didn't believe in making it easy for someone to meet with me, via phone, or in person. I guess that you could say that I made them "work for it." Does that make sense? I figured that if they made it through my qualifying process, they must be pretty darn serious about becoming the owner of a business.

 

I still work with prospective franchise owners. But, not as a franchise broker. I work in an advisory capacity, helping people make sense of the franchise selection and research process. I can help you, too. Just contact me.

 

 

"We want to thank Joel Libava for helping us slow down, take a breather, and truly understand what is best for us. Joel was so right when he said 'buying a franchise is not for everyone'. We thought it was a shoe-in for us until we learned more and decided to say 'hold on bobalouie,' this may not be for us after all. Our destination is yet to be determined, but I can say for sure we are much more informed today. Anyone thinking about buying a franchise needs to realize there is more to this than just wanting to own a franchise. Talk with Joel Libava-The Franchise King, way before you make ANY decisions, as he knows his stuff and helps you know yours, too. Joel truly is 'The Franchise King' and wears his crown well!!!" – George and Regina-Lexington, Kentucky

 

Should You Be The Boss?

 

 

Running a business is hard work. Being a business owner is, too.

 

Are you up to the task? Are your finances in good enough shape? Find out here.

 

What about your energy-level? Have you thought about that? I hope so.

 

Is your family on board? Are you thinking of becoming the owner of a small business because you can't find a good job?

 

Lots of things to think about. Obviously, the decision to own what you do is a biggie.

 

If you've been out of work for more than a few months, the idea of investing in a franchise business could be starting to sound attractive. I would wager that you would kind of like the idea of not ever working for someone else, again. (Especially since it was a "someone" who let you go!) But, is it a realistic thought in your current situation?

 

Here are a couple of scenarios in which franchise business ownership may make sense;

 

1. You're a former high-level executive with a pretty substantial net worth. ($1 million ) and you were recently downsized.

 

2. You were in middle management, made $150,00o annually, and have what it takes to run a business. You have a net worth of around $500k, with a working spouse.

 

3.  You were in a six-figure sales position, and lost your job, You love B2B sales….you're a real tiger. Your net worth is around $350k, but your spouse works, and you have very little debt.

 

4. You're currently working in a high-paying middle management or executive position, and have a net worth of $750k . You want to be proactive, and get into a business of your own now, so that you can have something that's up and running when and if you do lose your job. Here's a franchise for this situation.

 

If one of the 4 scenarios above describe your situation, you're a good candidate for business ownership. Notice that I didn't say "franchise" ownership. That's because you may not be cut out for franchising. It's like no other business.

 

If one of the scenarios above doesn't describe your current situation, don't give up. See if you can figure out a way to come up with more money. Maybe partnering with someone else is the way to go. You could also look into starting a low-cost, part-time business. Could your spouse/partner go back to work full-time, while you start a business? Have you asked Uncle Mort, yet?

 

You're the only one that can decide if the time is right for you to Become a Franchise Owner!

 

Would you like to talk with me for a few minutes to see if you should be doing this now? Check out my Free Service!

 

Only Look For a Franchise To Own After You Do This

 

If you're serious about becoming a franchise owner someday, and you're focused on lowering your financial risk, do this first;

 

(Future franchise owners)

 

Figure Out Your Finances!

 

There is no legitimate reason for you to start exploring all the different franchises that are available online—or offline, until you know exactly where you stand, financially.

 

As much as you may be tempted to "look around to see what's out there," I strongly suggest that you take the time right now to do a financial snapshot, so you can find out what you have to work with. To get all excited about an amazing food franchise before you even know if you have the financial wherewithal to invest in it, would be a massive waste of time and energy.

 

The only way to get that financial snapshot is by doing a net worth statement. Subtract all of your liabilities from all of your assets. The difference between the two is your net worth. In addition to the down payment required that will be required by lenders these days, don't forget about your living expenses during the start up period. You should have funds set aside for 6 9-12 months, while your business ramps up.

 

Now, if you've already started your search for that "perfect" franchise, but you've skipped the part that I just mentioned, S T O P.  It's time to wipe your slate clean, and start at the beginning. You'll really save yourself some grief. The decision to buy a franchise–be your own boss, is a large enough one to move through the process slowly and steadily.

 

There are several things that you'll need to do before you Become a Franchise Owner. Figuring out "the money part," is only one of them. Here are some of the other things you must do before you buy a franchise.

 

You may say to yourself that, "This is common sense, Joel."  In a perfect world it is common sense. But, our emotions have a way of creeping into big, and usually intense decisions like the one concerning becoming the owner of a business. Our emotions can easily overpower our logic…our common sense. I've seen it happen before. I've told many people that they should forego franchise ownership, and instead get a job in my role as a franchise advisor. But, their emotions got in the way…and they went ahead with their poorly laid-out plans anyway.

 

I write about all of the emotions that you'll be experiencing in my franchise book.

 

And, I show you how to keep them out of the picture during the franchise selection and research process.

 

That way, your decision to become the owner of your own business will be an intelligent one, but more importantly, one that will let you sleep well at night.

 

"What I love about Joel Libava's style is his sensible, honest-to-goodness demeanor combined with an expansive knowledge of the franchise industry. 'Become a Franchise Owner! The Start-Up Guide to Lowering Risk, Managing Money, and Owning What You Do' is a testament to knowing you're in caring hands receiving the very best information so you can make your smartest decision!" —  Betsey Merkel, All Analytics

 

Grab a Free Franchise Book Chapter

 

I've been able to get one wish (so far) granted by my amazing editors at Wiley Publishing;

 

To make a chapter of my franchise book available to you– at no charge.

 

 

 

 

I've seen several other authors do this; I've even grabbed a few free book chapters myself. It's pretty cool that I'm able to do this for you!

 

 

 

After careful consideration, (and a gentle suggestion from my wife) I've made my choice. It's a perfect chapter for anyone who's contemplating franchise ownership. The chapter that I'm making available includes several seemingly unrelated things;

 

Carts

 

Horses

 

Search engines

 

Blood pressure

 

A throbbing vein (What?)

 

Shopping

 

Road maps

 

Rules

 

Jobs

 

Cyborgs

 

 

To find out how those words come together, just type in your email address below. As soon as my editors release the chapter to me, you'll get it. My book "officially" launches on Dec 6th —all the bookstores will have it by then. But on Dec 5th, I'm launching it online. (SHHH. Don't tell Lauren @WileyBiz) I'll let you know where that will be happening soon.

 

The excitement is building. This book is going to be a game-changer for anyone that wants to Become a Franchise Owner!

 

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20 Things To Do Before You Buy a Franchise

 

Shopping around for a franchise to own can be super-frustrating. There are so many choices!

 

Not only are there thousands of opportunities to choose from, there are hundreds of franchise websites to look through. (Disclosure; one of my strategic partners is Franchise Direct. Their website does rock.)

 

 

Of course, if you tell a few people that you're, "thinking of buying a franchise-type of business,"  you'll be presented with even more choices-and ideas. (Some opinions, too!)

 

My franchise book provides several specific ways to look for the right franchises. There are several things that you must do, if you're going to have any chance of success in choosing an opportunity that makes sense for you-in your unique situation. That's right; in your situation. It doesn't much matter what your rich Uncle Mort thinks you should be looking at. Your college buddy's, (the one with the MBA) recommendations don't matter much, either.

That's because this is about you. It's about your future. Your family's future. It's about building equity in something. It's about freedom. It's about having more control in your professional life than you've ever, ever had.

And if you do this right, you may be able to sing this;

 

 

 

If you'd like to have your world on a string-do these 20 things;

 

 

1.  Be secretive

Don't tell your friends, relatives, and old lovers what you're thinking about doing. This will allow you to start with a clean slate-a clear head.

 

2.  Go deep. 

Do the Ben Franklin. Get out a piece of paper and a pen. Put a line down the middle of the page. Left side; write down the reasons that you feel you're ready to become your own boss. On the right-hand side, put down the things that may be cause for concern…now, or at a future time. This little exercise may help put things in perspective. The act of writing it down is really powerful. Try it.

 

3. Turn it over

(The piece of paper.)

On the other side, put down all of your professional and personal accomplishments. Don't be shy. It's bragging time! Save it for later. This will get you thinking about what you're really good at…what you're talents are.

 

4. Be strong

Don't give in to temptation! (What, Joel?) What I mean is don't start spending hours and hours online searching for that perfect franchise. It's not time to do that. Yet.

 

5. Grab your calculator

If you don't know where you stand financially, everything you'll be doing from this point forward will be a massive waste of time. Spend some time gathering specific information. Call your credit card companies, the banks that are holding your mortgages and your car notes, etc. Obtain your balances. Then call your mutual fund companies, or if you use a financial advisor, call him or her, and get your current statements. Expect to be a little crabby when you're finished with all this. (Not because of how your finances may look.) It's just that you're going to experience the joys of corporate phone trees. You'll be on hold a lot. You'll hear music in the background that you didn't even know existed.

 

6. Ben again

Get out a new piece of paper. Now that you have every bit of information concerning your finances, it's time to calculate your net worth. Draw a line down the middle of the paper. On the left-hand side put down all of your assets. IRA's, 4o1 (k)'s, savings accounts, stocks, bonds, your home's value, basically everything that has worth. On the right-hand side, write down all of your debts. This will include car loans, mortgages, credit card balances…basically whoever you owe money to needs to be shown on this side of your paper. To get your net worth, subtract your debt from your assets. That's it. Now you know exactly where you stand.

 

7. Budgeting for a franchise

You're going to need money of your own to put into the franchise business that you choose. There's no such thing as a, "no money down" small business loan. Figure that you'll have to come up with about 30% of the total franchise business investment. For example, if the total investment of a certain franchise is $225,000, which will probably include the franchise fee, equipment, build-out, inventory, and some working capital, you'll have to have the ability to write a check for around $65,000. I know that you probably don't know what kind of franchise you'll end up investing in. Just figure, (for now) that the average total cost of a franchise is $175,000. That means you'll have to have about $50,000 in liquid assets.

 

8. Talents

So, what are you really, really good at? Are you a stellar salesperson? Are you a top marketing executive? An amazing operations person? Are you a "numbers" person? Are you great at fixing things? Are you good at coaching and/or training? Go back to your "bragging" sheet. Circle your star qualities. Your top skills. These are things that you're going to bring to the franchise table.

 

9. Do you follow them or make them?

I'm referring to rules, here. Think back to the last job or jobs you had. Did you follow the rules there? Willingly? Or, were you a bit of a maverick? In other words, do you consider yourself to be a rule follower or a rule maker? Put in another way, are you a lover or a fighter? Lovers generally make good franchise owners. Fighters don't. Be honest with yourself here.

 

10. Take The Franchise Quiz 

I designed a short franchise compatibility quiz, and it's free. It will allow you to double check #9, above.

Take The Franchise Quiz

 

11. Set sail

It's time to explore the vast world of franchising. Grab your most comfortable pair of sweats, brew some high-test, and start looking around. See what's available. Go to Google, Bing, MSN, Dogpile, or any other major search engine, and type in these two words; "franchise opportunities."  Fun. Spend a few hours just looking. Don't fill out any, "request more information" forms yet.  Just have some fun. Be loose. Write some of the franchise concepts down that interest you-for whatever reason. This isn't Decision Day; it's Exploration Day. So explore.

 

12. The long list

When you're finished, "exploring" franchise opportunities, (and you've written some of the ones down that have peaked your interest) take a deep breath and look at your list. Write down, (next to each one) why it is that you're interested in them.  The reasons don't really matter yet. You now have a starting point. That's all you need. You have to start at the beginning, right? You're there.

 

13. Whittle

It's now time to whittle away at your list. Grab the sheet of paper that shows what your top skills are. Look at your long list of franchises. Are any of your terrific skills a match for the franchises that you're interested in? In other words, would your role as The Owner allow you to bring your best skills to the game? Are any of the franchises a match for you-based on what you're really, really, good at?

 

14. Don't Assume

In order to make sure that you've done #13 correctly, you'll have to make sure that you actually know what your specific role as The Owner would be. Don't assume. Don't guess. And you know what? There's really only one way to find out what you'd be doing as The Owner; you need to talk with the franchise development person!

 

15. Request The Info

Once you've found a few franchises that interest you, and that could match up to what I wrote in #13, it's okay to ask for a packet of information to be sent your way now. (Gulp.) Did you feel that? That's right; this is starting to get serious now. You did say that you wanted to "be the boss," remember? One more thing. Go back 8 spaces. Read #7 one more time. Before you request information from any franchisor, make sure that the total investment amount required is well within your budget. And, don't even think about searching online for one of those "free grants." They're aren't any.

 

16. Converse

Once you receive the franchise information packet, which may come via USPS, or electronically in some cases, arrange a call with the franchise development director. (Salesperson.)  Do this even if the information that you've received is less than exciting. The franchise brochure is not the franchise business. It's just information. Get involved with a human. Have a conversation about the franchise concept with someone other than yourself. Ask questions. Share your concerns, if you have any. Then decide if you're still interested. There's no guessing allowed. Please don't blow it here. Lots of people do. (Because they guessed.) They never even talked to someone from the company.

 

17. Be a machine

You need to become a FFGM. (A Franchise Fact-Gathering Machine.) Once you feel that you've found one or two franchises that make sense for you, it's time to do your research. Not just any research, though; amazing research. If you really want to lower your financial risk, learn how to do great franchise research. You're going to need to take the proper Franchise Research Steps.

 

18. Buy gas

Plan on filling up your vehicle's gas tank once or twice, before you Become a Franchise Owner! That's because an important part of your franchise research will involve visiting existing franchisees. That's right; you're going to impose on a couple of them. But don't feel guilty about asking one or two of them if you can spend a day in their businesses. Investing in a franchise business of your own is way too big for that. Guilt should never enter the picture. You'll find that most franchisees are very receptive to it. They get to show off their operation; you get a feel for the business.

 

19. Leave on a jet plane

Visit headquarters. That's right; if you're really serious about the franchise opportunity that you've been spending day and night learning about, schedule a day-long visit to the nerve center. Not only will you want to have some eye contact with the executives of the franchise company, you'll also want to try to get a feel of the company culture. (There is going to be one, trust me.) In almost every case, you'll have to be invited to what's commonly called The Discovery Day. Don't be cheap now; spend the money needed to travel to headquarters.

Here's an idea; ask your franchise development person to reimburse you for your expenses if you become an Owner.  

 

20. Lawyer up

They did. If you knew how much the franchisor has spent on legal fees to put all of their franchise documents together, your head would spin. You need to hook up with a competent franchise attorney. I don't mean a business attorney. A franchise attorney. Unless of course you don't feel that you need to know anything about the FDD. Lots of people don't use franchise attorney's to look over their franchise contract. They're ex-franchisees, now.

 

The Bonus Round.

Before you push one of these two buttons…

I want you to do something that's going to sound a little strange.

 

I want you to go to your happy place.

 

( A happy place.)

 

Take two days off before you make your yes or no decision on becoming the owner of a franchise business.

 

Think about the intense state you've been in for the last couple of months, or so. Franchising is all you've been thinking about. Your brain needs to rest. Go somewhere and recharge your batteries. Go to the the park for a few hours. Go be near water. Chill. Read a good fiction book. Stay away from anything related to franchising or business. Attend a sporting event or two. Take a day trip. Do something different. It's head-clearing time.

 

Then if everything feels right, and the data that you've gathered looks good, Become a Franchise Owner!

 

My book goes into everything that I've shared with you in this post. And more. A lot more.

 

I'm out to create a brand-new generation of super-successful franchisees.

Introducing James, a Downsized Middle Manager

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Let me rephrase that; James is a really frustrated downsized middle manager. And, you're going to get to meet him.

 

In my franchise book.

 

After receiving his Business Degree at The University of Chicago Booth School of Business in 1990, James scored a nice management position. He proved to be an excellent employee-and a quick learner. That made it easier for him to quickly move up the company ladder.

He married his college sweetheart, bought a cute little houses in suburban Chicago (complete with a white picket fence) and settled down. A couple of years later, he and Marcia (his wife) had their first child, and a year later, their second.

 

A Corporate Guy

 

James easily fit in the corporate structure, no matter where he worked. (I've included a subtle hint of what was to come for James in that sentence. It may be time for you to look through those boxes in your basement–for your Secret Decoder Ring.)

Gradually, James was given more and more responsibility, including the added stress that goes along with it. James was up for it though; his increasingly larger paychecks were making it pretty palatable.

Back at home, things were going pretty well, even if they were a little cramped; their 3-bedroom home didn't have a lot of extra room for storage etc, so they put it up for sale, and bought a larger home, less than a mile away

 

Then

 

Of course, you know what happened right after James and his family moved into their new house, and paid their first new (and much larger) mortgage payment.

Right?

 

More to come.

 

Please pre-order my new book, below.

 

Become a Franchise Owner!: The Start-Up Guide to Lowering Risk, Making Money, and Owning What you Do [image error]

 

And follow @Franchise_Books on Twitter

 

 

Have you ever been downsized? Did anything positive come from it?