McDonald’s and Dunkin’ are ubiquitous franchises that we are all familiar with, yet these may not be the opportunities prospective franchise owners should be seeking in today’s economy?
Joel Libava of Franchise King fame shares insights into current franchise trends and provides useful guidance for evaluating franchise opportunities.
Here is an edited transcript from the show, along with its video version and SoundCloud player to listen in on it all!
Franchise or Business Opportunities: Which Should You Select? Shawn Hessinger: Joe, can you explain why some entrepreneurs might select franchise ownership over starting from scratch as their business option?
Joel Libava: People usually tell me that they want to buy into a franchise because it allows them to enter an established business that’s almost ready for operation.
However, most people aren’t suitable candidates for franchising, since many don’t like rules and following an extensive operations manual without selling anything besides what you’re supposed to. Furthermore, franchising requires very little creativity on behalf of its franchisees.
Shawn Hessinger: How should one decide when making the decision about whether or not to start their own business or franchise it? While discussing possible reasons why some individuals might make such choices, how should you assess franchising as an option and whether franchising is indeed right for them? What questions should they pose themselves before declaring “I want a franchise?
Joel Libava: Well, let’s begin with the rules question. Are you going to follow them or make your own? Consider your history – were you more of a follower or creator in terms of rules creation/following in previous roles – before making your decision here. Be clear about this decision. Saying things like, “Well I’ll just follow whatever rules they give me as long as they suit my tastes is not ideal!