Business Bootcamp | Be Careful Of Wolves In Sheep’s Clothing In Franchising
Business bootcamp says to be very careful as with 100% certainty, the franchise representatives do get paid if they sell that particular franchise location to you! Bear in mind that that is in fact their job, to sell franchises to his many people as possible.
If you buy they make commission, which is money in their pockets. On the other hand, if in fact you succeeded that franchise, they’re not making any money.
Usually the person selling the franchise will only get money if you are buying that particular location of that franchise.
They cannot advise you on the numbers for that business, or they won’t advise you if it is a good idea for you financially. They are just a salesperson, and you should proceed with them accordingly. They are allegedly somebody who gets paid a commission only if you by. Their motivation is not necessarily and not at all the same as yours. They don’t care if you succeed or you fail. They just want you to buy. They do not have the same interests to heart as you do.
As well, business bootcamp strongly urges that you walk into negotiations with a franchise, or business, with “your guns loaded.”, What that means is make sure that you have done your homework and that you have a plan in place. That plan in place can be talked about and written with yourself and an impartial outside charter professional accountant. Another ploy that franchises will do is that they will say that after you have signed on the dotted line and paid all the money and the franchise location is now yours, only then will they work on a business plan with you. However, what happens if you don’t like the business plan?, What happens if you don’t necessarily like the financials coming out of that location? As well what happens if you don’t like the numbers that you have seen? Or the history of that location? Now you are absolutely locked in 100% they have your money and that’s it.
You may hopefully not have to bring yourself with the front franchise costs and the royalty fees if you’re going to in fact go on with it. It is same thing as if you don’t want to use it, as it just gets incomplete, as sometimes the training documents and the processes are not complete. They will be very hard for you to work off of. Hopefully they haven’t as well used another ploy that is a meeting a lot of the financials from common knowledge. That will allow you to make a very strong, very good decision. However those numbers are not there, they’re conspicuously missing.
Bear in mind, warns business bootcamp, that as franchise business owners and representatives of the parent company, they will stop at nothing to have you by their company. They may not necessarily be out of the law, but they will be very unscrupulous in wanting to get your money.
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There are a lot of ploys that franchise owners and people and representatives of the franchise parent company will undertake in order to have you sign on the dotted line and for you to be a part of their franchise. All they want to do is they want to make more money because they have sold franchise. That is what they do, their salesman. You can potentially liken them to car salesman. If you don’t make a purchase of a franchise, they don’t make any money.
Consider as well, says business bootcamp, in doing your homework, and you have to do a lot of homework when you’re trying to buy a franchise, of fair market value for employees and employers. What that means is do your homework ahead of giving them all that money and go to at least three different franchises from three different part of town and make sure that they are potentially of three different financial situations.
Talk to them and see what you are potentially involved in. Make sure that they are of fair market value. What that means is that hopefully they are not working 70s a week, 14 hour days, and getting a very minimum wage out of the business. Make sure that their money is at least worth their time and vice versa.
On the other hand, knowing that you have retained a small business, or a franchise, you automatically know that you are going to be working long hours, says business bootcamp. That is just common knowledge for people who own their own business, and or who have a franchise. It is likely, that you will be working far more hours if you have retained your own business versus a franchise. Usually what happens is franchises are ready to go when you have finished your training and pager money. You can turn the key, ergo considered turnkey businesses, and away you go.
A lot of people think that they may like the franchise versus the own business, and vice versa. There are a lot of reasons and will give you a lot more flexibility, however it’s going to take more time with starting and owning your own business, says business bootcamp. You may not necessarily want to burden yourself with franchise costs and the royalty fees if you aren’t going to use it.
Make sure, that if you do own a franchise that they have given you all the processes with which to succeed. And all of the procedures. If you own your own business however, you can make up your own processes and procedures. There are a lot of give-and-take with both situations. With franchises you can just walk right into the business and every thing is ready.
With your own business probably you will have to start everything from the ground up. That can potentially be extra costs for you as well so make sure that you are making the right choice.