Path 19: Copy And Paste (ie. Buying a Franchise): Part 1

Resources On The Topic:

Entrepreneur Magazine
Fast Company Magazine
FranchiseMart.com
Street Smart Franchising by Joe Matthews, Don DeBolt, and Deb Percival

While McDonald's and Kentucky Fried Chicken may get all the credit for the franchise concept, it has actually been around far longer. History shows evidence of franchises in China as far back as 200B.C., though they may have started even earlier. If 2200 years of success isn't enough to convince you of the power of a good franchise, then hopefully this article is.

For starters, because the topic of franchises is so large and important, I plan to break it up over a few postings. The first post today will address the franchise discovery process. Later postings dive even deeper into the franchise topic.

So my guess is that if you stumbled upon this article, you have some pent up desire to head down your own road to financial freedom, but you haven't found that "guarantee" just yet. While there are no guarantees in the world of small business (or big business for that matter!), buying a great franchise is the closest thing out there. You gain the knowhow/processes/marketing support/web presence/name recognition of a successful business, which allows you to focus on one thing: being a small business owner.

When starting the franchise discovery process, there are a TON of resources available to you. A trip to your local library or book store will provide you with a host of magazines such as Entrepreneur Magazine or Fast Company. These magazines do a great job of profiling several successful franchises, telling you about the new rising stars. If you prefer to do the work on your own, there are also magazines such as Business Opportunities Handbook that are nothing more than a listing of franchises. They can be a bit tedious to read through, but provide more than enough information on the available franchises, no matter what niche you are considering.

In addition, a new company called FranchiseMart is spreading around the country and can provide a useful resource for your franchise search. Visit their website and see if they have a location near you. For a small fee, they will work with you to find a franchise that fits your needs.

These resources serve as a great starting point for understanding what is available, but the next step is even more critical. You need to spend some time answering the following questions and use them as a guide to selecting the right franchise for YOU:

1) How Much Money Am I Willing to Spend Upfront? Depending on your resources, some franchises may be out of the question right away.

2) How Many Hours Per Week Do I Want To Spend Working? While being a small business owner is rewarding, it can actually become more time consuming than a normal 9-5 if you aren't careful.

3) What Does My Geographic Area Need? While a chain like Pak Mail is very highly regarded, you need to consider whether or not there is enough local business to support it.

4) What Competitors Are Out There? To use Pak Mail as an example again, if your region already has a FedEx, UPS, and DHL, then you may struggle to pull customers away.

5) What Will I Enjoy Doing? One of my favorite franchises is Little Jimmy's Italian Ices. Operating a snow cone cart outside on sunny days is hardly working in my book. This is important to consider.

6) What Is My Final Goal? Do you want to run this business for life? Do you want to establish a business that you can sell to someone else for profit? You need to understand your long term goals before you take the plunge.


This should be enough to get you started. Use the tools and questions above to narrow down your options. In future articles we will discuss the franchise management process in a bit more detail.

Good Luck!


Keys to Success:

Read Up! There is a ton of material on the subject.

Take Your Time. Selecting the right franchise for YOU is critical.

Ask For Help. Once you've chosen the franchise for you, don't hesitate to contact the owners of existing franchises to ask questions. In most cases, they will be glad to help.