There are all sorts of shopping. You can shop for necessity (grocery shopping), you can shop for pleasure (my favourite type – clothes, jewellery etc) and you can shop for business (stationery, wholesale, and businesses themselves). As a shopaholic, I have practically experienced all types of shopping. I have obviously bought groceries, and obviously shopped indulgently (otherwise I would not be a shopaholic) and I have shopped for my business. I have even shopped for property. I have however never actually gone through with a franchise purchase before.
You see, the thing about franchises is they have many negatives and many positives. Weighing them all up takes time and effort. It is not like buying a £10 top and if you then decide you don’t like it, you just stick it into the back of your wardrobe or give it to charity. We are talking multi thousand pound purchases.
If you ever get the franchise opportunity, do look into seriously. You need to remember that even if it is a successful business it might not work for you. McDonalds might be a well known franchise but opening another McDonalds right next door to someone else’s McDonalds would be counter productive. You would be sharing your revenue at best!
My issues with Franchises is that they have to be run the way the mother company decides. This is probably a good thing as it sets out parameters which have proved to be successful. However this limits your choices. For example you cannot have a Burger King Franchise and sell 7-UP because they have a multi billion deal with their own soft drinks company for exclusivity.
They can also be expensive versus setting it up yourself. For example buying a Subways franchise would cost you lots because it is Subways, where as setting up your own sandwich shop will be a negligible cost in comparison. However, the upside to the spending the money upfront is that everyone has heard of Subways. And if you have a choice of Subways or that new shop on the corner that no one has ever heard of before… where will you buy from?
Do you see my point?
So essentially do consider franchises seriously but do also consider the ties they come with. My current thoughts are for owning a Burger King or Pizza Hut Franchise in the Isle of Man. Neither are available in the Isle of Man. A winner surely? I had to give up on trying to Franchise my business… it was really hard work and I wasn’t a multi million dollar business!