Franchising - What's The Catch? Your 13 Step Checklist

Franchising - What’s The Catch?
www.conspicuous-cbm.com

13 reality checks that will
help you assess objectively if
buying a franchise is the right
choice for you!

What You Will See
• Introduction
• The 13 Reality Checks
• Final Thoughts

Introduction
• Thinking of a franchise? What you want more than anything is the balanced view of its potential
for you.
• If all franchises were as good as the brochure, then everyone would have one. In short, what’s
the catch?Some franchises are better businesses. But there is another piece to this jigsaw
puzzle…YOUFranchising does work. As long as you find the right business sector that you enjoy
working in and that resonates with your personal values, it CAN be a successful business
venture.The key word here is CAN. The thing is that enjoying and caring about the franchise you
own is not enough. There is a catch with franchising, and it applies to every single franchise
system out there. Many people who come from being an employee attracted to franchising
because it offers greater security than setting up their own business. Franchises have a proven
record that makes success more likely than other start-ups. Banks feel more confident in lending
to potential franchisees & there is a whole network of professionals who can advise
franchisees.But this is still a business. Running your own business will always carry an element
of risk. Risk is something that you won’t hear or read in any sales pitches, but it’s absolutely vital
to grasp.
• Can’t accept the risk – however small – of setting up your own business, then don’t start one,
even a franchised one.

The rest of this presentation has one aim: Saving you time and money. If you really
want to own a franchise, YOU need to ask yourself some fundamental questions
about your attitude to risk. We have created 13 reality checks that will help you
assess objectively if this is the right choice for you. Great being ready for a big
change on a wet Monday morning when you’ve just been passed over for
promotion, but that energy and optimism needs to carry you through the inevitable
tough times of owning your own business.
At the Conclusion you’ll be clearer on the downsides of owning a franchise.
Still want to go ahead afterwards, your probable chances of success will be
higher. But answer each question with 100% honesty. Play devil’s advocate with
yourself to end up with a firm foundation on which to build your business.

Reality Check # 01
Do You Want A
Regular Salary?

• No business can ever provide this.
• A stable monthly income is the major stumbling block
for many on the road from employment to self –
employment.
• Ever wondered how entrepreneurs manage to pay
their mortgages? Find out by arming yourself with as
much information as possible. Talk to successful
business owners.
• Is this business viable? Do you have enough income
from another source (e.g. your partner’s salary, rental
income) that can cover your outgoings if need be?
Reality Check # 01
The Truth?

Reality Check # 02
Do You Want
Success In A Box?

• Owning a franchise is not like having a winning lottery
ticket. You won’t make a profit straight away.
• Seems like an obvious statement, but sometimes it’s
easy to believe what you want, especially if you’re really
excited by the idea of running your own business.
• Ask yourself if you’re prepared to put in long hours for
little or no ROI (return on investment) in the first years.
• Do you have the perseverance to carry on when things
look hopeless and other people around you are urging
you to “stop wasting your time.”
• Any business takes time to build up, franchising is no
different.
Reality Check # 02
The Truth?

Reality Check # 03
Do You Want Someone To
Hold Your Hand?

• Of course you don’t. But do you?
• This check is designed to make you aware of your need to
avoid making all the difficult decisions.
• Every franchise should offer some form of guidance to its
franchises.
• The important thing is not to mistake guidance for hand
holding.
• Eg finding it tough to get your first client? What help might you
expect from head office? This varies in every organisation, but
it is reasonable to expect that you could talk to someone about
this.
• This would then leave you with some ideas about winning new
business. Question is, are you happy to go out there and try all
the suggestions out? Willing to do things that seem
counterintuitive and take you outside your comfort zone?
Reality Check # 03
The Truth?

Reality Check # 04
Can’t Sell, Won’t Sell?

• Read the following sentence, and then notice your immediate reaction:
Sales is a noble profession. Does this seem a ridiculous statement to
make?
• Selling as a skill has been hijacked. Hijacked by those people who want
to push an inferior product or service onto naïve and trusting consumers.
• Many of us have grown up with the preconception that selling is really all
about being domineering, misleading and money grabbing.
• In truth, the reverse is true. As long as you are providing something that
you genuinely feel is of value to people, selling is all about demonstrating
that value to them. If the product you sell makes your clients four times
their own investment back, then you are helping them. It’s a no brainer!
• Done right, sales is a noble profession. Integral to any successful
business. There is no place for the ‘can’t sell, won’t sell’ mentality in
owning your own franchise.
• Still worried your deeply ingrained mistrust of sales people threatens your
new venture, don’t worry. You can learn some ethical sales techniques
that allow you to demonstrate the core values of your product or service.
Reality Check # 04
The Truth?

Reality Check # 05
Are You Disorganised?

• Owning your own business generally
requires more organisation than being an
employee.
• Because you have so many decisions to
make and nobody else to take up the
slack when you’re busy, you really do
need some systems in place.
• Just as for selling, there are ways to learn
skills that you don’t already have.
Reality Check # 05
The Truth?

Reality Check # 06
Do You Still Want Annual
Leave?

• Owning a business and going on holiday are not mutually
exclusive: you can do both. There is, however, an important
distinction between holidays and annual leave.
• The annual leave mindset is a way of thinking when you can set
aside blocks of time off work. This time is your own. Doesn’t matter
what is going on with your employer’s company, your annual leave is
guaranteed.
• When you are self employed, any number of things can happen to
upset this state of affairs. No-one expects you to cancel your
holiday to sort out problems in your business, but you should expect
to work evenings and weekends. As the boss, time off is a much
more flexible concept. You work 80 hour weeks as required, then
take time off when it suits.
• That’s the difference – Time off is to suit your business, not your
calendar. Better you run your franchise, the more time off you can
have.
Reality Check # 06
The Truth?

Reality Check # 07
Where Does The Buck
Stop?

• “Times are hard. It’s the economy. People just aren’t buying these
days. It’s no wonder start ups struggle.”
• When things get tough for your business, are you going to come up with
any of these reasons for your sales being less than you hoped for?
• If so, it’s best to stop reading now and start looking for a different career.
• All the excuses above are exactly that – excuses. They all translate into
the same mindset – “not my responsibility.” Probably the biggest reason
for failure.
• Consumers are more cautious than they were a few years ago. If things
were as dire as the media would have us believe, why are there >7 million
millionaires in the USA? If people “just aren’t buying these days” everyone
would be driving cheap cars and wearing cheap clothes. Apple would
have gone into receivership.
• No doubt you have some big challenges ahead of you as a business
owner. Taking complete responsibility for your franchise is the only way to
make it a success.
Reality Check # 07
The Truth?

Reality Check # 08
Are You Risk Averse?

• Ever watched Dragon’s Den? The investors number one priority is
to reduce the risks of losing any money they invest.
• They talk a lot about taking calculated risks. This should be your
approach to business – all the time and money you invest balance
against the possible risk.
• You can see that being an entrepreneur is about taking risk &
minimising these risks.
• You need to ask yourself honestly how risk averse you are. You can
still enjoy all the fringe benefits that you did as an employee
(sickness cover, pension, etc) – but these do rely on your continued
monthly payments.
• Business always involves risk. You can minimise, but never
eliminate.
• The upside of that if you are determined to get good at what you do,
you are in a stronger position than an employee. No one can ever
sack you.
Reality Check # 08
The Truth?

Reality Check # 09
Do You Hate Networking?

• It is very, very hard to get most businesses started
without networking.
• It is something you really need to embrace.
• If your image of networking is schmoozing with the
local Chamber of Commerce, champagne receptions
at the Mayor’s office and endless rounds of golf-to-
impress, then prepare to be pleasantly surprised.
• Networking today is much more down to earth. You
may not meet a potential customer at one of these
events, but you will almost certainly meet someone
who knows someone who needs what you have to
offer.
Reality Check # 09
The Truth?

Reality Check # 10
Are You A Team Player?

• The interview question that makes everyone cringe inside,
whilst they smile brightly and concoct some anecdote about
how they rallied their colleagues when times were tough.
• One reason people go into business for themselves is to
escape office politics. They want to work without having to deal
with idiots, bullies, and people who continually let them down.
• It’s true that owning any business means there is no boss that
you have to kowtow towards.
• However, if you want to make a living, then you need to be able
to work with other people.
• Specifically how will vary from industry to industry. Difference is
that you learn to tolerate people to build your business, not
lining your boss’ pockets.
Reality Check # 10
The Truth?

Reality Check # 11
I’m Just Not Sure…

• Read the brochure about the franchise. Spoken to the salesperson and to
an existing franchisee. But you just can’t decide.
• No-one can know the outcome at the time they make that decision. If you
are still unsure over whether to take on a franchise, no point in taking the
plunge.
• So what do you do? It’s a paradox – you aren’t sure how it will work out,
but you need to be 100% on board to give it a real chance of succeeding.
• Absolutely right. It’s a contradiction to accept if you are going to
succeed. This really gets to the heart of the risk that is inherent in all
business ventures.
• Stuck at this point, best thing to do is find out how successful
entrepreneurs handled things. One thing Richard Branson etc had in
common was they could never be sure any venture would succeed, but
gave it 100% anyway.
• Goods news is you don’t need to be as innovative as them. Provided your
franchise model works, the level of risk you are dealing with is lower.
Reality Check # 11
The Truth?

Reality Check # 12
Do You Want An Easy Life?

• It’s easy to buy into the perks of a franchise.
• The glossy sales brochures are full of the fringe
benefits, the inspirational success stories and the joys
of being master of your own destiny.
• Do not make the mistake of translating all this into “it’s
an easy life”.
• Launching any successful business can never be
described as easy.
• For many, the rewards far outweigh the difficulties, but
rewards are what they are, not freebies for the lazy.
• To get a reward, you have to earn it.
Reality Check # 12
The Truth?

Reality Check # 13
Do You Want To Buy A
Job?

• Do you want to buy a job? Bizarre question. Buying a job is a mindset in which:
★ You assume others have been successful, therefore you automatically will too.
★ Higher the set up costs, the higher your chances of success are (“I’ve invested
all this money. It mush be worth it”)
★ You have no boss - therefore no problems
★ You think: “Someone at head office is there to sort out my problems if I mess
up”
• Taking on a franchise is instead the idea of making the most of an opportunity. This is
the mindset where:
★ You take responsibility for your business
★ You are willing to make sacrifices in terms of time and money to succeed
★ You accept the risks
★ You are 100% committed, in spite of those risks
★ You have a vision of where you want to take the business, and where it can take
you
Reality Check # 13
The Truth?

Final Thoughts
• Now you should have a great view of the downsides of taking on a
franchise.
• If any of these set off alarm bells for you, then it’s time to seriously
consider if it’s the right path for you. If you are willing to accept the
potential risks, then you are a lot further down the road to owning a
successful franchise. Being an entrepreneur is not for everyone. However,
if it still appeals to you after everything you’ve read, some fantastic
benefits are yours for the taking:The freedom to make your own decisions
to work in an industry you are passionate aboutPotentially doubling or
tripling your income and net worth over timeTaking control of your lifeOnly
you can decide if a franchise is the right decision for you. We hope this
helps clear up some myths and preconceptions surrounding the issue.

Contact Us

THANK YOU

Franchising - What's The Catch? Your 13 Step Checklist

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