My business partner and I owned 2 franchised businesses during our 25 years in business together plus 1 each prior to our joint venture. ?Normally, it doesn?t take that many screw ups to learn more than you want to know as an entrepreneur.
Actually, 2 of our franchises were complimentary to our main staffing business [not a franchise]. ?Originally, my franchise was in the staffing business. ?Unfortunately, the franchisor didn?t make it and had to file for bankruptcy protection from his creditors.
I mention this to you because Franchisors do go out of business and can leave you hanging on by yourself. ?Whatever franchise fees you pay, usually $20K or more, office leases, equipment leases are all your responsibility and without recourse with the franchisor.
Truth is?. our Franchisor was a fine person, Christian business executive, with a history of excellent business success. ?He was a good family man but short on building the necessary systems needed for long-term success as a Franchisor.
Even this early experience with franchising turned out to be the ?stepping stone? to my long-term future of 32 years in the staffing business. ?Following the demise of my 1st Franchisor, I was offered the opportunity to join a National Staffing Firm with business connections which proved to be a good decision for my family.
We believe there?s a reason for everything that happens. ?It helps to believe and KNOW that GOD has a life plan for us. ?Nothing is outside of HIS will, concern and knowledge. ?That simply means never give up but keep on keeping on. ? Sometimes it seems that we?re either coming out of a crisis or about to enter a new one year after year.
Fortunately, as much as we dislike rules and regulations, the Franchisors of today have to ?jump through? a number of ?hoops? to prove viability and a substantial business history. ?Any new Franchisor has to invest BIG $$ setting up a franchise offering and covering the legal requirements before he/she can begin.
Regardless of how appealing the franchise offering might be, your own due diligence is an imperative first step. ?Your own protection from making a wrong choice in the beginning and then to confirm that your decision is on the right track.
Franchisor responsibilities are long-term. ?Your original fee as well as continuing fees you?re required to pay the franchisor are NOT without a fair expectation. ?You are entitled to exceptional leadership, guidance and continuing help from the Franchisor to grow your business, add new products/services to benefit your customers.
Obviously, a careful reading of your contract with the Franchisor is more likely protective of them Vs you and yours. ?It?s imperative that your own legal counsel makes sure you are fairly dealt with in any agreements you are expected to sign with the Franchisor.
Our Franchising experiences have been both positive as well as negative. ?The main reason we share our personal history and caution today is to make sure it?s a RIGHT decision for you and your family.
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