Franchise Insider: Figuring Out Franchising


Marketing, training, and education–A franchise system that provides ongoing support in marketing/advertising, training, and education can be helpful. Brewer emphasizes the importance of marketing and advertising. “While a franchisee can be helped financially to stay in business, if people don’t know that your business is there then you’re setting yourself up for failure,” she says. “It’s equally as important. So many franchisors are providing additional training and support to its franchisees, and also educating them to connect with the people within their respective city’s economic development office or entity. While you may be able to get an initial reduced franchise fee by 10%, that’s a one-time thing. But if the franchisor helps franchisees connect with the business resources in their community and learn about the tax breaks and tax credits available, that’s ongoing and will affect their bottom line beyond the first year with long-term implications.”

Planning–”If someone wakes up one morning and says, ‘I want to buy a franchise,’ that would scare me,” admits Brewer. “It is a process that you’re going to have to live with for–at minimum 10 years. It would be easier to get out of a marriage than to get out of a franchise.” Brewer advises potential franchisees to take their time, educate themselves, and prepare financially before signing on the dotted line. “Doing some long-range financial planning in terms of where you want to be five to 10 years from now, and putting those things in place before you go into business would make for a smoother transition.”



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