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Why People Are Drawn To Franchising
Why People Are Drawn To Franchising
One of the universal questions asked by anyone looking to join a franchise is, “Why are prospective franchisees attracted to a franchise?” The answer lies in the understanding of what motivates personal decisions, particularly a decision that involves a significant investment.
Individuals are attracted to franchising for a number of reasons. Though these reasons vary from person to person, we’ve learned over the past twenty years that most people are attracted for one or more of the following general observations:
Control Issues. Many prospective franchisees are driven by the frustration they’ve felt in past employment situations where they didn’t have enough control of their work environment to influence results in the manner they desired. Perhaps they had a micro-managing boss, a parent corporation that wouldn’t listen, or something comparable. In any case, they are drawn to the idea of being their own boss, having the final say in relation to business decisions, and being able to accept either the credit or the responsibility for whatever outcome their business produces.
Economic Need. In the past 15 years, we’ve seen an increasing trend in large corporations to displace experienced managers in favor of less experienced (and therefore less expensive) workers. This dynamic has created a pool of experienced managers in the 45-60 year old age bracket who have found it quite difficult to gain employment comparable to what they had before. In many cases, they cannot afford to retire and need to create a replacement income for a period of time. More and more, these experienced managers are being attracted to franchising as a vehicle to accomplish this goal without the fear of having to go through another “down-sizing” again in the future.
Lifestyle Issues. Another major attraction for many prospective franchisees is related to lifestyle issues. We see a steady stream of potential investors who talk about their desire to reduce business travel, job related stress and the number of hours they work per week. They often also want to find businesses with down times at certain points in the year so they can take more time off with their families or for other leisure activities. The advantage of franchising for these people is that there are so many options to choose from they are undoubtedly able to find an opportunity that matches their desires.
Wealth Creation Goals. Many of our prospective franchisees have figured out that though their work efforts may be creating a significant amount of wealth, in most cases they are not sharing directly in the wealth they are creating. They will put in their forty plus years and then retire on whatever they’ve managed to save plus Social Security. Many investors are attracted to franchising because they understand that their efforts have the potential to create significant amounts of wealth and they will be the ones who own the wealth that is realized when it comes time to sell the business they’ve built.
Though there are other reasons that an individual might be attracted to any given franchise opportunity, one or more of these four reasons will almost always be present.
To further the self-examination necessary to make a decision, interested individuals needs to spend some time exploring their motivation for wanting to become a franchisee. If it is not possible to achieve whatever your goal is through a specific franchise it is best to determine that early in the process so you don’t waste time. A better, more informed decision will be the result.