Do You Know the 5 Phrases which Franchise Insiders Never Use?
Joe Caruso
Franchise Sales Expert and Franchisor Executive Advisor | Co-Producer of Franchise Chat & Franchise Connect | Empowering Brands on LinkedIn
This could be your first day looking at franchises or considering a franchise distribution model for your business.
And if you went searching around the internet you will find all of these statistics and cliches in a variety of iterations.
Do you use any of these? Because Franchise insiders don't.
# 1 - US Department of Commerce Study shows 97% of Franchises vs. a 50% failure rate for independent businesses
Not so - The US Department of Commerce did not make this conclusion. Call and ask them. Bureaucrats tend to keep records they are proud of.
#2 - The median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year.
Not true and foolish - Median can't be a range. It is the exact midpoint of a range. It's impossible to support this assertion. Because you can't make a range a median.
#3 - US Small Business Administration study conducted from 1978 to 1998, which found that 62% of non franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.
Unverifiable and likely not true - If you go to SBA.gov you can't find this information. You can find a lot of franchising people touting this as true.
#4 Owning a franchise allows you to go into business for yourself, but not by yourself.
It's trite - Franchisees are independent business owners and all of the owner's obligations are solely theirs. It's more like for franchisees and franchisors that - we are all in this together separately. When you succeed your franchisor will be happy to rejoice in the shared success. If you fail at franchising you will be an orphan and all alone in your failure.
# 5 Franchising is like a marriage.
No it's not like that at all - Marriages are supposed to be until death do you two part. Franchises are for specific term of years. You and your spouse make mutual decisions about what you'll do in your married life. In franchising your brand activities are prescribed by the franchisor. A marriage is between two people. If franchising was like a marriage then a franchisor would be a polygamist with multiple partners.
If you're using these 5 foolish franchise cliches you should stop. And if you hear someone using one of these cliches, turn around and run away.
P.S. Want to market and sell your franchise on LinkedIn I can show you how Franchise-Info's LinkedIn prospect marketing works.
It requires a 15-minute investment from you.
And I guarantee you won't look at LinkedIn recruitment the same way again.
For more information, call or text Joe at 502.396.9204 or email [email protected].
CEO @ AC Inc | Franchise Operations | Speaker & Facilitator ??
8 年Great points. I was laughing out loud about comparing the franchisor to a polygamist. The concept of promoting franchising bugs me. It has to be a fit for the company considering using it to expand and for the person thinking of becoming a franchisee!
Franchise Sales Expert and Franchisor Executive Advisor | Co-Producer of Franchise Chat & Franchise Connect | Empowering Brands on LinkedIn
8 年With 4033 franchises offered for sale in the US and CA. There are 3 kinds of franchise sellers. 2 are dangerous. People who don't know what they are doing. And scamsters.
Owner, Founder, President @ Sanderson & Associates | Marketing Communications
9 年Can I check your pulse? Too obvious.
Commercial real estate, business, and franchising attorney
9 年Joe, thank you for saying what needs to be said about buying franchises. So many prospective franchisees mistakenly believe that all franchises are created equal - yet they most certainly are not!
Franchise Growth Strategist | Co-Producer of Franchise Chat & Franchise Connect | Empowering Brands on LinkedIn
9 年Brian, you got a cite for your claim? It is hard to believe that franchising in the UK is so much more successful than in the US.