The Realities of Franchise Ownership: What it REALLY Takes to Succeed

As a franchise consultant, my goal is to provide curious corporate executives, investment-minded individuals and others with a clear, unvarnished look at franchise ownership.?

Recently, I had an enlightening conversation with Bobby Brennan, a seasoned expert in the franchise industry and partner at Front Street Equity.?

Bobby's journey from shoe sales to franchise partnerships offers valuable lessons for anyone considering franchise ownership.?

WATCH: The Inside Scoop on Buying and Running a Successful Franchise Business

Bobby’s journey into franchising began in 2008, during the economic downturn.?

Starting with Complete Nutrition, he quickly learned the importance of a “figure it out” mentality. When faced with challenges, Bobby’s mentor advised him to develop the ability to solve problems independently – a crucial skill for any franchisee.?

This mindset is essential because, in the world of franchising, you must be prepared to handle unexpected situations and make decisions that can impact your business’s success.

The Franchisee-Franchisor Relationship: A Two-Way Interview

One of the most critical aspects of the franchise selection process is understanding that it is a two-way interview.?

As a prospective franchisee, you must evaluate the franchisor just as much as they evaluate you.?

Good franchisors are selective; they seek candidates who align with their values, possess the necessary skills, and demonstrate commitment. It’s vital to show up prepared, respect their process, and ask insightful questions.?

This approach helps ensure that both parties are confident in their partnership.

Realistic Expectations and the Value of Hard Work

Bobby shared an important lesson from his time at Complete Nutrition: many potential franchisees see the success and numbers but fail to recognize the hard work and dedication required behind the scenes.?

Franchising is not a “business in a box” or an easy path to wealth.?

It demands commitment, effort, and a willingness to follow the franchisor’s system while bringing your unique skills to the table.

The Role of Strategic Partnerships and Community Engagement

Building a successful franchise often involves more than just following a set system. Bobby emphasized the importance of strategic partnerships and community engagement.?

When he was running Complete Nutrition locations, he immersed himself in the community, establishing connections that drove business growth.?

Similarly, my wife and I leveraged networking and partnerships in our ShelfGenie franchise to generate additional revenue streams.?

These efforts take time but are crucial for long-term success.

Evaluating Franchise Models: Brick and Mortar vs. Service-Based

Not all franchise models are created equal, and some are better suited for different types of ownership.?

Brick-and-mortar franchises, with their controlled environments, often lend themselves better to semi-absentee ownership.?

In contrast, service-based franchises can be more challenging due to the need for dynamic managers and the complexities of off-site operations. Understanding these nuances is vital when choosing a franchise that aligns with your skills and lifestyle. Yet, service-based franchises are attractive to many people for a variety of reasons, such as: they can be less capital intensive to start; they can launch and ramp up quicker; they can have a higher ceiling to scale without having to add more units or open more locations.?

It’s important to develop an understanding of the various business models found within franchising, the nuances between these models, and then compare that with what you want out of business ownership.?

Avoiding Common Pitfalls: Follow the Playbook

One of the most common mistakes franchise candidates make is not fully committing to the franchisor’s system.?

As Bobby pointed out, you buy into 100% of a franchise, not 90%. Franchisors look for candidates who can follow their processes and systems while also demonstrating the ability to innovate and adapt.?

Showing that you can respect and execute their playbook during the discovery process is crucial for gaining their trust and confidence.

Commitment and Self-Reflection

In closing, Bobby offered invaluable advice: franchise ownership requires a deep commitment and thorough self-reflection. Prospective franchisees should create lists of their reasons for pursuing a franchise and their potential concerns. Weigh these lists honestly to determine if franchise ownership is the right path.?

Remember, if it’s not a clear “hell yes,” it’s a no. This mindset helps ensure that you enter into franchise ownership with the right expectations and the dedication needed to succeed.

Franchise ownership is not just a business decision; it’s a lifestyle choice. It demands passion, resilience, and a willingness to face challenges head-on. By approaching the process with realistic expectations, a strong work ethic, and a commitment to following the franchisor’s system, you can navigate the path to successful franchise ownership.

Curious About Franchising? Let’s Talk!

If you’re interested in exploring franchise ownership as an investment vehicle, wealth building strategy or pivot out of a corporate career that’s grown stale, we should talk.

I’ve spent the past decade owning, operating and scaling my own franchise businesses, along with helping countless clients as a franchise consultant.

If you like, reach out to me and let’s find a time to connect.

There’s no cost and no obligation involved - my goal is to educate and facilitate vs. trying to sell you on franchise opportunities.

If that sounds like something you want to explore, I look forward to connecting soon.

You can also visit my website or check out my Path To Freedom podcast as well.