Unfortunately, I do heard stories of people who put buying a franchise in the top list of what-to-do-after-you-are-being-downsized – I agree with Joel: Franchising is not for everybody. How people are being misled? The culprit is the widespread belief that buying a franchise gives you a huge opportunity to succeed – The coveted 95% success rate.
In another article, Mr. Libava indicates that the 95% success rate of franchise ownership is a myth (and an urban legend), as there is no reputable source that could back the stat.
To make matter worse, people seem to believe the claim that says buying a franchise is better than starting your own business. The answer: It’s pretty much depending on the reason why you take the franchising route in the first place. For a wrong reason, franchising can be your route to failure.
While in the US this 95% success rate has been thwarted and clarified in many articles, forum threads, and any other publications, franchising in other parts of the world, surprisingly, still adopt this misleading stat as an elevator pitch, and it still works wonder.
Is buying a franchise still a legitimate way to be a successful entrepreneur?
Absolutely yes. I have faith in franchising, and as someone who blog about franchising from an International (or better to describe, from the rest of the world’s) point of view, I do hope non-US franchises (at least the local franchise associations) do better job in educating franchisee candidates (and existing franchisees and franchisors) with the right information and industry trends from the IFA (International Franchise Association.)
Forget about the 95% success rate: There is no such thing… Otherwise, all would want to invest in franchises.
Instead, focus on how a franchise company’s business concepts and vision best-fit with yours. The proven system will not help you if you enter franchising with the wrong mindset and understanding.
I did take franchising route for the wrong reason (a.k.a the 95% success rate), and that’s why I understand why people fall into the same trap that fails franchisees (and franchisors alike.) Despite of that, I am planning to invest in a franchise unit (again) in the near future, and (hopefully) this time, it’s for the right reason, which in my opinion, looks like this:
Buying a franchise allows you to enjoy the networking, branding, business relationship and income potential that no other business model can offer you.
The best thing you and I should do is, again, to learn as much as possible from the IFA and any other trusted resources before taking any decision on buying a franchise.
A franchise is a great business move especially when it is a branded corporation, using promo tactics like giving away useful items like custom pens or bags can help your branch exceed further.
Ivan Widjaya
Franchise fan
Image by asifthebes.
