Practical, Pragmatic Preparation

Franchising 101: The Complete Guide to Evaluating, Buying and Growing Your Franchise Business

Edited by Ann Dugan, Published by the Association of Small Business Development Centers (ASBDC)

Cooked up by CPA's, Attorneys and Insurance Brokers, with a dash of disgruntled franchisee and a pinch of fatherly advice from a franchisor, this utilitarian dish is nothing if not healthy. With a steady diet of this recipe, potential franchisees will leave the table full and satisfied and yearning for a VERY rich desert to make up for all the pragmatic, reasonable and intelligent ingredients used to prepare this three course meal.

Course 1: "Choosing Your Franchise" opens with a light salad of franchising history explaining how Singer Sewing Centers were the first franchisor in 1858. There are tales of early automobile dealership franchises, oil company and service station franchises, and motel chain successes that lead to the explosion of the franchise phenomenon in the 1950's and 60's. The bulk of the color is made up of tart slices of Ray Croc's establishment of the Franchise staple, McDonald's. With some dressing made up of a bit of "Good News Future" discussing the establishment in 1992 of the American Association of Franchisees and Dealers or AAFD, (the equivalent of a Franchisees union) to tilt the flavor toward sweet.

There are croutons here to add texture and variety, warning that you must be very clear that there is a large difference between an entrepreneur and a franchisee. It is simply stated that if you spend more time thinking about how things "could or should be" then it is likely you are an entrepreneur and that franchising is definitely not for you. Predefined trade dress, business practices and required equipment, signage, etc., are each carefully chosen and non-negotiable by the franchisee. Once again, the AAFD proudly spices this ingredient defining newly negotiable items of contracts and leases while clearly stating that the Franchisor maintains the upper hand in all cases.

>From the initial colorful history right into the bland body of "how-to" information through helping the potential franchisee to determine the selection, research, pricing, purchasing a franchise and choosing location and leasing details. Finally there is the tart flavor added by a none too happy franchisee who thought long and hard but ignored danger signs in acquiring a business she had decided on before her research told her that this was a sour deal.

Course 2: "Acquiring your Franchise" is the main course and while definitely healthy and well prepared, it is something you read because it is good for you, not because you like it. This course is made up of a discussion of another acronym, the UFOC or Uniform Franchise Offering Circular. This is a federally mandated document outlining 23 precise ingredients that must go into this course of the meal.

If you are purchasing a franchise, then this will always be the main course and will always have these ingredients. Two attorneys walk you through the preparation of the franchise agreement, lease negotiation, incorporation, cash flow, banking, loans and business plans. You know you must finish this bland course, but yearn for some spicy condiments that just aren't available in this healthy, well-balanced meal.

Course 3: "Managing your Franchise" is a natural side dish discussing the managing, motivating, hiring and firing of employees. The body of this dish is made up of more healthy requirements of market research, taxes, insurance, accounting, marketing and business management practices. This course is spiced a bit with the fatherly advice of a franchisor who basically suggests that franchisees should respect their elders and be good kids and they will be rewarded with favoritism.

Altogether I'd have this meal if the only other choice were the bland bread and water of a nine-to-five work-a-day routine, but what it all comes down to is that operating a franchise is serious business, that it takes money to make money, and that it will clearly be very hard work. There are the benefits such as managing your own time, doing what you enjoy, scheduling your own vacations and making major decisions without a boss hovering over you.

This hearty meal will be very good for you if you've decided that franchising is the career path you wish to follow. Nothing is left out of the recipe and there will be plenty of good information to fill your financial plate. After you clean the dishes and make your decisions you'll definitely want to go elsewhere for desert because Franchising 101 offers up only pragmatic, practical fare with no coffee or desert on the menu. This is the hard work without discussing any of the rewards to tantalize you and only a sad tale of one unhappy franchisee to feed your appetite for possible self-fulfilling careers.

About the author: Mike Banks Valentine WebSite101 "Reading List" Weekly Netrepreneur Tip Sheet Weekly Ezine emphasizing small business on the Internet Subscribe by e- mailto:WebSite101-subscribe@listbot.com