Franchise Buying Advice: Make Pancakes!

by Eric Stites

Franchise Buying Advice: Make Pancakes!

Business and pancakes have a lot in common. And franchising has done for business, what Bisquik® did for pancakes: took a proven recipe, packaged it with easy-to-follow instructions, left a little room for imagination and manual labor and voila — successful, delicious, expected results!

Comparing franchising to Bisquik® is a bit of an over simplification, but there are definite similarities. Like Bisquik®, when you buy a franchise you are buying a “recipe for success” based on proven results (or at least that's the idea behind franchising). Just follow the simple instructions step-by-step and reap the rewards! This isn't to say you are guaranteed success but your potential as a franchisee is greatly enhanced by a strong franchise system.

So how do you tell a strong franchise system from a weak one? The best place to start is with existing franchisees. Are they established? Are they happy with company support and training? Are they making money? Would they do it again? Did the franchise meet their expectations? And most importantly, are your expectations similar? Happy franchisees that are making money are a strong sign of a healthy franchise system. Anything less, should be a big, red flag.

When talking to franchisees, ask them what their daily responsibilities are… what do they do every day? It's important to realize that you could stumble upon a very healthy franchise system, but if the daily routines of the average franchisee aren't how you want to spend your days, you will most likely fail. It's important to be honest with yourself, know your skills and limitations, and truly understand what it is you're looking for out of business ownership.

On a final note, don't be alarmed or discouraged by some negative feedback from franchisees. No franchise is perfect and every system has its top performers, average performers and bottom performers…as well as some failures. The important thing is to identify if it's an isolated problem or a system-wide issue, and how is it being addressed.

Unsuccessful franchisees fail for one of three primary reasons: under capitalization, flawed franchise system or not following the program. It's pretty easy to estimate approximately how much money you will need to fund your new franchise. It's also fairly easy to spot franchise systems with flawed or yet-unproven business models. So the only question left is Will You Follow the Program? If the answer is yes, then buying a franchise is probably a good option.

Read what franchisees are saying about our featured Reviewed Franchises

Bisquik® is a registered trademark of General Mills, Inc.

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