Quiz: Do You Know What It Involves To Be A Franchise Owner?

im2With literally hundreds of franchises offering people a chance of becoming successful entrepreneurs, many are willing to dive in head first without knowing or understanding exactly what franchising involves.

Franchising has been around for centuries as people realise it’s a great way to own and operate their own business. If you are looking into buying a franchise, do your homework and research first. Once you have decided on a franchise type, set up a meeting with the franchisor and discuss every single question that you have before making a final commitment.

Still not sure? Complete Maxi’s quiz to help you get a better understanding of what restaurant franchising involves.

Question 1: Do you know what your upfront costs and other fees are going to be?

a)      Money, shmoney… I am not worried about costs, bring it!

b)      I have done my research so I know what to expect.

c)       I will take out a loan when the time comes, with franchising I will make back my money back fast.

Question 2: Are you happy with working under someone else’s corporate image?

It is less work for me so I am happy.

a)      My franchise of choice has a great corporate image, that’s what attracted me to them.

b)      If their image works then who am I to complain?

Question 3: Does the franchisor offer training for you and your staff?

a)      Who needs to be trained? Just tell me what to do!

b)      From my research, yes, they do provide initial training as well as on-going training.

c)       My staff can go for the training; I will not need it as I will employ someone to run my franchise for me.

Question 4: How do you feel about dealing with the public?

a)      Everyone loves me!

b)      The public will be my bread and butter so their needs come first and foremost.

c)       As long as my staff is friendly, then I don’t need to worry about the public.

Question 5: Are you willing to be hands on?

a)      I will employ a great manager who will take my place of being hands on at all times.

b)      If I want my franchise to succeed I need to be involved 24-7.

c)       My staff and I will figure out a roster of who will be hands on at what times and when.

Question 6: The franchise will provide basic marketing, but are you willing to take a buck out of your pocket to do that extra for your store?

a)      Once people know that it is my franchise, word of mouth will be my best marketing!

b)      Of course, an advert or two in my local newspaper will only benefit my store.

c)       I’m sure the marketing that the franchise offers is sufficient.

Question 7: Franchising may involve many late nights, can you give up your evenings? 

a)      That will have to be my management’s problems not mine.

b)      It takes hard work to succeed and if success is what I want, then yes!

c)       No problem is that urgent; I’ll sleep on it and sort it out in the morning.

Question 8: Your local newspaper calls you about a complaint that is going to be published about your store, how do you handle it?

a)      Pay the newspaper off before it goes to print.

b)      I will contact the customer directly, apologise and send him or her vouchers and make sure that it doesn’t happen again. If needed, I will reiterate my apology to the newspaper.

c)       All publicity is good publicity?

Question 9: Have you put together a crisis communications document in case of an emergency?

a)      My store won’t have a crisis so that is not necessary.

b)      I have put together a document with my franchisor and we are all set and ready just in case.

c)       That is the franchisor’s problem to sort out not mine.

Question 10: How are you going to make your franchise the best it can possibly be?

a)      The brand speaks for itself, so I don’t need to do anything more.

b)      My franchise will be of the best standards and my customers will be my first priority.

c)       Just take it as it comes, day by day, buck by buck.

If you answered mainly A’s:

Franchising is a lot harder and more involved than what you may think. As easy as it sounds to just employ someone else to run your franchise for you, there are many risks involved if you are not a hands on franchisee. With there being procedures that you need to completely comply with, you need to understand you will not have absolute control over your business as you will need to answer to the franchisor that has the greater brand’s interest at heart. As the market is competitive, Maxi’s conducts formal evaluations on an ongoing basis to ensure its Standards of Operations are in place and are adhered to. It takes a special kind of personality to reach the highest echelons of success in the food industry.

If you answered mainly B’s:

Congratulations, you may have been born to be a franchisee! With your dedication to franchise ownership and your enthusiasm to learn, your business is bound to flourish! You clearly understand that franchising involves many late hours and hard work but you also understand that putting in the effort, will see that you reap the awards. With Maxi’s you will never be alone. Our training department offers franchisees five-weeks intensive training, which includes theoretical training conducted at one of our regional stores nationwide, as well as practical hands-on, in-store training. This is followed by ongoing training initiatives for your existing staff as well as for new staff entering the system.  In addition, skilled franchise consultants will visit your restaurant on a regular basis to provide assistance and further on-the-job training.

If you answered mainly C’s:

You might want to reconsider your business approach, as franchising might not necessarily be for you.  Poor management skills, a reluctance to follow a proven formula, substandard people skills, a lack of capital, independent-minded entrepreneurs that don’t follow the rules, and selecting an industry that is unsuited to specific needs, are just some of the reasons why potential franchisees might experience a mismatch between their expectations and those of the franchisor. Franchisees that leave their business in the hands of others are also less likely to succeed than owners who take a hands-on business approach. After all, if making money is your sole consideration, how will you know if someone’s hands are dipping into the till…

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