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Press Releases |
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CNN Interview Update
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CNN Interview - Secret to Franchise Success - Updated June 2010
Franchise owership opportunities provide the security of brand recognition including trademarks, experienced franchise system management and franchise administraton, and a proven business model to a small business owner. In theory, this should result in a franchisee having higher success rate than non-franchise business opportunity owners. But in practice, franchises can and do fail.
In an interview aired on CNN, Franchise.com owner, and FranchiseUniverse.com President Nancy Ghanem, gave her recommendations on franchise success and gaging a franchise buyer realistic financial projections.
Ghanem believes franchise owners fail primarily because they do not adequately research franchise opportunities prior to purchase and they do not match the personal attributes and interests associated with the presented business opportunity.
Ghanem believes franchises primarily fail for the following reasons:
• Franchisee fails to research franchise system
• Franchisee does not know how to research the franchise opportunity
• Franchise system selected is itself not solid and growing
• Franchisee is selecting the wrong franchise type suitable to them
• Franchisee not knowing he or she should not even own a franchise or perhaps any business
To paraphrase the Jim Collins, the author of the popular business book "Good To Great" and his "yellow school bus" analogy failure in franchising occurs if franchisee:
• Gets on the wrong bus
• Sits down in the wrong franchise seat on the bus
• Gets on the bus and should instead have gotten on an airplane
An example of this theory is when a franchisee buys a restaurant franchise but does not like dealing with people and employees. This mismatch may be amplified if this same franchisee prefers working at home.
Before considering to buy a franchise a person should determine:
• Annual income requirement to provide a secure and comfortable living
• What financial resources he or she can safely put forth
• How long he or she can go without meeting their annual income requirement
• If financially qualified consider what franchise is affordable
• Determine tolerance for taking financial risks
• Seek franchises that match his or her interests, financial capabilities, and risk tolerance.
• Check your credit report and clean-it-up if necessary.
• Request information about franchises online or at trade shows
• If your request is not answered within a week eliminate that franchise from consideration. This may indicate the franchisor will not follow up well AFTER you become a franchise owner who needs assistance
• Try to speak with newer franchisees in system and ask questions
o How long have you been in business?
o How are you doing?
o Is your volume of business growing?
o Pleased with earnings?
o Ask franchisee to share some of their costs
Rent
Inventory
Labor
Advertising
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CNN Interview - Secret To Success Update
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CNN Interview - Secret to Franchise Success - Updated June 2010
Franchise owership opportunities provide the security of brand recognition including trademarks, experienced franchise system management and franchise administraton, and a proven business model to a small business owner. In theory, this should result in a franchisee having higher success rate than non-franchise business opportunity owners. But in practice, franchises can and do fail.
In an interview aired on CNN, Franchise.com owner, and FranchiseUniverse.com President Nancy Ghanem, gave her recommendations on franchise success and gaging a franchise buyer realistic financial projections.
Ghanem believes franchise owners fail primarily because they do not adequately research franchise opportunities prior to purchase and they do not match the personal attributes and interests associated with the presented business opportunity.
Ghanem believes franchises primarily fail for the following reasons:
• Franchisee fails to research franchise system
• Franchisee does not know how to research the franchise opportunity
• Franchise system selected is itself not solid and growing
• Franchisee is selecting the wrong franchise type suitable to them
• Franchisee not knowing he or she should not even own a franchise or perhaps any business
To paraphrase the Jim Collins, the author of the popular business book "Good To Great" and his "yellow school bus" analogy failure in franchising occurs if franchisee:
• Gets on the wrong bus
• Sits down in the wrong franchise seat on the bus
• Gets on the bus and should instead have gotten on an airplane
An example of this theory is when a franchisee buys a restaurant franchise but does not like dealing with people and employees. This mismatch may be amplified if this same franchisee prefers working at home.
Before considering to buy a franchise a person should determine:
• Annual income requirement to provide a secure and comfortable living
• What financial resources he or she can safely put forth
• How long he or she can go without meeting their annual income requirement
• If financially qualified consider what franchise is affordable
• Determine tolerance for taking financial risks
• Seek franchises that match his or her interests, financial capabilities, and risk tolerance.
• Check your credit report and clean-it-up if necessary.
• Request information about franchises online or at trade shows
• If your request is not answered within a week eliminate that franchise from consideration. This may indicate the franchisor will not follow up well AFTER you become a franchise owner who needs assistance
• Try to speak with newer franchisees in system and ask questions
o How long have you been in business?
o How are you doing?
o Is your volume of business growing?
o Pleased with earnings?
o Ask franchisee to share some of their costs
Rent
Inventory
Labor
Advertising
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CNN Interview - Secret To Success
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CNN Interview - Secret to Franchise Success - Updated June 2010
Franchise owership opportunities provide the security of brand recognition including trademarks, experienced franchise system management and franchise administraton, and a proven business model to a small business owner. In theory, this should result in a franchisee having higher success rate than non-franchise business opportunity owners. But in practice, franchises can and do fail.
In an interview aired on CNN, Franchise.com owner, and FranchiseUniverse.com President Nancy Ghanem, gave her recommendations on franchise success and gaging a franchise buyer realistic financial projections.
Ghanem believes franchise owners fail primarily because they do not adequately research franchise opportunities prior to purchase and they do not match the personal attributes and interests associated with the presented business opportunity.
Ghanem believes franchises primarily fail for the following reasons:
• Franchisee fails to research franchise system
• Franchisee does not know how to research the franchise opportunity
• Franchise system selected is itself not solid and growing
• Franchisee is selecting the wrong franchise type suitable to them
• Franchisee not knowing he or she should not even own a franchise or perhaps any business
To paraphrase the Jim Collins, the author of the popular business book "Good To Great" and his "yellow school bus" analogy failure in franchising occurs if franchisee:
• Gets on the wrong bus
• Sits down in the wrong franchise seat on the bus
• Gets on the bus and should instead have gotten on an airplane
An example of this theory is when a franchisee buys a restaurant franchise but does not like dealing with people and employees. This mismatch may be amplified if this same franchisee prefers working at home.
Before considering to buy a franchise a person should determine:
• Annual income requirement to provide a secure and comfortable living
• What financial resources he or she can safely put forth
• How long he or she can go without meeting their annual income requirement
• If financially qualified consider what franchise is affordable
• Determine tolerance for taking financial risks
• Seek franchises that match his or her interests, financial capabilities, and risk tolerance.
• Check your credit report and clean-it-up if necessary.
• Request information about franchises online or at trade shows
• If your request is not answered within a week eliminate that franchise from consideration. This may indicate the franchisor will not follow up well AFTER you become a franchise owner who needs assistance
• Try to speak with newer franchisees in system and ask questions
o How long have you been in business?
o How are you doing?
o Is your volume of business growing?
o Pleased with earnings?
o Ask franchisee to share some of their costs
Rent
Inventory
Labor
Advertising
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