Six Franchising Facts Of Life

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The following Franchising Facts of Life give you a sampling of some things we have found, through long years of experience, to be true.  They may not be easy to hear, but they can save you time, money and grief.

Six Franchising Facts Of Life

1.  You have to kiss a lot of frogs to find a prince. 

Most franchisors report working through an average of 75-125 leads for each franchise sold.

2.  Forget about Franchise Fees. 

Franchisors should NOT expect to “live” on the proceeds from franchise fees; most of the fee will be spent by the franchisor before the franchisee opens the doors.

3.  If you’re not showing a profit, franchisees will become scarcer than hen’s teeth. 

Franchisees buy a “shortcut” to a moneymaking business; they will judge your words by your track record.

 4.  Marketing costs money

Probably more than you think.  The more aggressive your sales goals, the more aggressive your lead generation program should be.

5.  Consultants that make franchising sound quite easy are also usually quite wrong. 

Be wary of requests for large upfront payments or large equity positions.  While reasonable retainers are standard, the bulk of a consultant’s compensation should be based on reaching specific performance goals.

6.  Most new franchisors often have business plans that start with “Once upon a time…” 

Are your sales expectations based on caviar wishes or pragmatic realities?