Attention Prospective Franchisees: A Post You Need to Read
I hear two words from prospective franchisees all the time. In fact, almost every time someone visits with me regarding a franchise opportunity. But a blog post on the Franchise King's Blog says these two words don't exist in franchising.
If you are a prospective franchisee read the post from the Franchise King and take it to heart. There is no such thing as "Turn-Key". Franchise operations do not magically appear and then you walk through the door to a pile of cash thrown at your feet. It's hard work and it depends all on you.
I can tell you from experience that if a dispute or litigation occurs, the franchisor will probably deny they know what "turn-key" means and the franchise agreement will contain disclaimers that make the franchisor's marketing materials immaterial. And although the franchise industry has done a good job of marketing its method of business, the facts are that franchise operations fail at essentially the same rate as independent business operations.
I am not anti-franchising. Franchising definitely has its place. But I'd make sure I was with a franchisor that possesses superior name recognition in its marketplace, quality products and/or services and a proven system. A proven system that won't be "turn-key".
Rush,
Thanks for;
1. The mention.
2. Being an advocate for future and current franchisees.
3. You rock.
I'm not anti-franchise, either. I think that it's a great business model. For The Right Person. With Enough Money in The Bank to Keep Them Afloat for a While. (Until profit sets in!)
The Franchise King®
Good post by Joel there, however at the same time I think we may be taking the phrase "Turn Key" a little literally. Generally what it means is (for the business industry) a platform which is ready for immediate use. A turn key website for instant is a fully built site ready for launch, that of course does not mean it will start to generate you an income as it is like having a shop on an empty high street, you still need to generate the footfall/traffic and the same goes for any franchise business describing itself as turn key, it's ready to run but you are still going to have to work hard to provide the service and generate the sales.
Matthew,
Thanks for the comment. I agree with you. Unfortunately I do think prospective franchisees often take "turn key" a little too literally. Just as you said, hard work is required.