Would You Make a Good Franchisee?
Franchisees are a unique breed of entrepreneur. While cultivating a successful chain requires a dynamism and perseverance, it is also necessary to respect the stated boundaries of the business model at hand.
"Not all of us are wired to be franchisees," says Terry Powell, CFE of The Entrepreneur's Source, a business coaching company. "Franchises have guardrails that you operate within." Flexible though they may be, operating outside of these confines can spell disaster.
But just how should aspiring franchisees choose the type of business that's right for them? In addition to selecting a company that speaks to a particular passion or interest, says Fastsigns CEO Catherine Monson, it's wise to limit your search to franchisors with "a significant number of locations."
And when the owners are able to tap into a fitting business model and leverage it into a multi-unit operation – which is the case for 52 percent of franchise operators in the U.S., says Powell – the results can be as gratifying as they are lucrative.
Despite any bumps along the road in founding his nascent New Jersey chain Kono Pizza, David Ragosa says that the good days ultimately outweigh the bad. "I don't care if you own one store or you're a multi-unit franchise who owns twenty, thirty stores," he says. "Owning your business is the American Dream."
See more tips for aspiring franchisees in this short video.