I am in the process of launching a new book aimed at prospective franchisees and would welcome your input and feedback.

If you would like a copy of the book for FREE prior to launch then have a look at the site   Franchise Book

It would be welcome to get some feedback, input and possibly some testimonials.

A while back I commented on the number of franchise information sites that are merely advertising portals designed for no other reason than to earn income from advertisers. They have minimum amounts of content and provide no real value if you are seeking franchise information.

While doing my research i came across a site that is refreshinglt different. http://www.bluemaumau.org/  provides the usual adverts for franchises but has a fantastic amount of relevant content and information. It has a mix of contributers from franchisors, franchisees and franchise consultants. If you are looking to buy a franchise i would suggest you also have a trawl through this information site and their franchise forum.

A great piece of information that is important to all franchisors and franchisees is that of Scott Shane and Chester Spell who demonstrate that ¾ of all franchise systems fail within the first 12 years, and less than 1 in 4 survives until the end of the contract.

Originally published in the Sloane Management review in 1998 the article is one of the more common sense pieces of writing covering the franchise industry.

They identified a number of important franchise success factors that should be used to assess the likely success of a franchise system. They are:

• Rapid growth (or planned rapid growth) of the franchise means that they can begin to reach a level to compete with existing players in the marketplace.

• Local management support of the franchise aids rapid growth

• Demonstrable trustworthiness and high quality systems

• A recognised successful history before franchising. This resulted in a recognised ‘brand name’ that could not be easily copied. Systems, marketing, premises e.t.c could be easily copied by competitors – a brand could not
• Economies of scale i.e cheaper costs because they are larger, in marketing. This was achieved through being a bigger brand.
• Rapid growth of the franchise allowed the brand name to develop quickly and stop competitors from copying or replicating the business idea.
• Using local franchisees to use their local knowledge to determine local business decisions and operate with fewer ‘local field operations’. This means the franchise resources can be concentrated on branding, marketing and growth. The entrepreneurial ‘drive’ of the franchise owner is concentrated on building the business. The opposite of this is by keeping close control on local franchisees by appointing Master Franchisees. This was shown to develop ‘passive ownership’ which undermines the entrepreneurial incentives of outlet ownership. The said “therefore growing quickly, through master franchising, increases the probability of system failure”

• Franchisees should seek franchisors that are expanding rapidly.
• Franchisees should not seek a franchise that promises a lot of field support
• A lean operation at headquarters is a success predictor
• Franchisees should seek franchisors with strong brands or at least a plan as to how they will develop a strong brand
• Franchisees should be a member of a regulatory body
• Franchisees should be wary of franchises that offer master franchising. Whilst this speeds growth it also increases the likelihood of failure.

 The more I look into the Franchise Industry, the more it is apparent that most Franchise Information is geared around selling franchise opportunities. The business franchise is exactly that - big business.

If you do a search on google on ‘franchise’ or ‘franchise information’ then you are likely to be presented with thousands of pages of franchise advertisers, franchise consultants, franchise marketplace websites and possible a franchise association.

I have been seriously researching the franchise industry for a number of years now and the number of good information sources I have found are few and far between. There are a number of good books on franchising on amazon and I strongly suggest that if you are seriously examining buying a franchise then you read as many as you can. You can never have enough information.

I have just come off the back of two days solid of research on google on franchises and I have yet to find any information sites that are not in some way ‘sponsored’ or funded by franchises or consultants.

Why is this?    Do you know any?

The franchise world is big business and the opportunities to get impartial, informative advice and information about franchises are few and far between.

If you are considering buying a franchise then the biggest piece of advice I can offer is to consider the motivation of any article, web site and ‘guru’ that you come across. Do your due diligence and ask what their motivation is for providing that information.

To begin that process, let me give my honest answer:

I am writing a blog to give impartial advice from some one who has been a franchisee. I have seen the good and the bad of the franchise industry and have lost a lot of money.

I have spent the last three years, and more, fully researching the franchise industry and have been struck by the lack of impartial advice and information. I have a small vested interest as I am writing a manual on my experiences and how you can avoid them and will be launching it soon. Apart from that, however, I have no other interest in providing you information other than making sure you make the right decision for the rest of your future.

To your future business success

http://www.businessfranchiseinformation.com/