Many entrepreneurs wish to build up their companies and franchise it across the region, then state, then country and then the World. Well sure sounds good but it is not so easy. First it costs a lot of cash up front, about a million dollars to do it right. Then there is an abundance of lawyer fees, which make you hate all lawyers until the day you die with a passion so intense you may not even recognize yourself as these professional parasites attempt to rape you. Seriously. Then there are issues with over regulation in franchising and all the disclosure documents you have to register. Then you find out that different states have different rules and they even want to tell you what you can and cannot say on our company website. Things which are perfectly natural on any other business website are immediately called into question on franchising websites. Next you may not realize this by franchising companies have a 5:1 failure rate in the first five years. Many franchise buyers know this and will not wish to buy your franchise at all for this reason. Then there are the associations in franchising, which promise you the World and all they deliver is hundreds of potential vendors who try to sell you everything from marketing services to payroll services. It is a bizarre group of high priced consultants, services and salesmen indeed. Worse off your million dollar capitalization is needed and every penny of it and you have to watch the cash flow and initial burn rate like a hawk. If you do decide to franchise you business be careful. How do I know? Well I did it and lived to tell about it. Trust me, it is possible but it is a maze of traps and you have to pay attention to the details. Consider this in 2006. |
