Franchising is a waste of time!!

[Ivan2BAlive]

Question? As a franchisor, are you better off setting your goal to achieve profits through royalties or through selling to as many franchisees as possible? @Walter Hay

Probably be the franchisor and not the franchisee. It's probably better selling franchises that managing one.

 

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[Walter Hay]

Probably be the franchisor and not the franchisee. It's probably better selling franchises that managing one.

Definitely it's better to be the franchisor. Second best is to buy a Master Franchise, but having been a franchisor I can tell you I would never buy an individual franchise. Most exert excessively restrictive controls and too many are not as profitable as you are led to believe.

Franchisors are not without headaches. There is a bit more to it than just banking checks. You have a responsibility to your franchisees to:

• Make sure they have continuity of supply of whatever special or specific items are needed to operate the franchise.
  
• You have to negotiate with suppliers, although some lazy or unethical franchisors leave that to individuals, losing the benefit of bulk buying in the process. Some franchisors even take kickbacks, effectively stealing from their franchisees.
  
• Maintain effective advertising.
• Keep an eye on their bookkeeping.
• Find new ways for them to increase turnover and profits.
• Enforce as gently as possible, the franchise Operations Manual rules. This was my biggest problem because some wanted to branch into other product categories, but the rules were very specific for good reasons. The product range was profitable, the brand was known and respected, the marketing was effective, the whole supply chain was running smoothly, the system worked. That's what they paid for, so why change it?

There are other things but what all but the last of these things listed amount to is doing what you would have done when running the business before you franchised it out.

Walter

 

[Walter Hay]

P.s @Walter Hay Yes, please... and make sure you release a audiobook version for the people that find reading long books to be a pain.

Sorry, my voice is no longer as strong as it used to be, so an audio book is not going to work.

The good news though, is that the book, published today on the Fastlane Marketplace (Walter Hay's Business Book) is only 32 pages, but I believe it says all that needs to be said to help people who want to discover the benefits of scaling at amazing speed via franchising a business.

Don't buy a franchise.

Walter

 

[Real Deal Denver]

Yes.

I remember some time ago reading very interesting posts about running a gas station from you.

This business fascinates me. I am trying to figure it out, but not being on the inside, my information is very limited.

For one thing, I notice there is often a spread of 50 cents between Sams Club and some stations. Stations like to say they only make 7 or 8 cents a gallon. I hate being lied to. Assuming Sams Club is making that much, the profit of 57 cents a gallon is quite good. Add in the over-priced snacks and these can be cash cows.

The one thing that has me amazed is how they get the very best corner real estate sites.

I think I'd like to run a few of these based on the ease of the business.

Not been there or done that, I realize I could be totally wrong. Any comments would be appreciated and interesting -

 

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