There are many good reasons our FranNetDFW clients buy into a franchise rather than starting their own company from the ground up. The franchise model takes a lot of the unknowns out of running a business. Ideally, a new owner can rely on the following to be true:
- There is existing demand for the product or service
- The business model has been proven to work
- The brand is already established and has built up name recognition
- There are processes in place that can be easily replicated
- Headquarters is there to provide support on an ongoing basis
- Other franchisees can offer encouragement and guidance
With so many obstacles to business ownership removed, there’s a good chance of being successful. But that’s not always the case…especially if would-be franchisees don’t have the right guidance.
Not All Franchises Are Created Equal
Becoming a franchisee should be like joining an established community rather than blazing a trail into unknown territory. However, it’s still the Wild West out there when it comes to selecting the right business. It’s natural to want to get in “on the ground floor” for a new opportunity. But making an impulsive decision can have far-reaching consequences.
Something’s Rotten in This Food Truck Franchise…
A food truck franchisor made the news recently when a number of his franchisees went public with their complaints about unsavory business practices. The franchisor was offering custom trailers, prepackaged foods, and franchise territories to prospective business owners. He was apparently a compelling salesman and encouraged people to make on-the-spot decisions at trade shows. Not surprisingly, a number of buyers changed their minds after giving the idea more thought. They tried to exercise the rescission options in their contracts before expiration.
But buying a food truck on a whim turned out to be a lot easier than getting their hard-earned money back. In some cases, the franchisor allegedly wrote hot checks to repay the investors. In others, he agreed to resell the trucks and refund the money, but instead kept the proceeds himself. To this day, he blames the franchisees for his inability to make good on his promises. He claims that their complaints on sites like Ripoff Report have harmed his business, limiting his ability to make enough money to repay what he owes. It’s a sad story, especially for the fledgling business owners who are now poorer but wiser.
Ask Questions First—Buy Later
If you have the ability to buy a franchise, that’s money you want to invest safely. You can’t afford to be struck by “franchise fever.” Fortunately, there is a step-by-step process you can go through to make a smart decision. At FranNetDFW, we specialize in helping prospective business owners select a franchise with care. We fully vet every company we represent so that only qualified opportunities are presented to our clients. On April 13th, we are showcasing several of these successful franchisors who have expressed a desire to expand into Dallas/Ft. Worth so you can meet them in person. Reserve your spot for this free event now!