{"id":17928,"date":"2015-12-23T14:08:08","date_gmt":"2015-12-23T14:08:08","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=17928"},"modified":"2022-11-10T12:41:40","modified_gmt":"2022-11-10T17:41:40","slug":"future-franchise-owners-feel-frustrated","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/future-franchise-owners-feel-frustrated","title":{"rendered":"This Is Why Future Franchise Owners Feel Frustrated"},"content":{"rendered":"<p><a href=\"https:\/\/www.flickr.com\/photos\/60532299@N05\/galleries\/72157626214087247\/\" rel=\"attachment wp-att-17931\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-17931\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/3986997574_5aa55585a4.jpg\" alt=\"why future franchise are frustrated\" width=\"360\" height=\"299\"><\/a><br \/>\nIf you&#8217;ve been looking for a franchise to buy for any length of time, you know first-hand how frustrating the process can be.<\/p>\n<p>Some of your frustrations revolve around volume; the sheer number of franchise opportunities available. There are literally thousands of franchise opportunities to choose from. And, don&#8217;t forget the hundreds of <strong><a title=\"difference between franchise opportunities and business opportunities\" href=\"https:\/\/www.thefranchiseking.com\/business-opportunities-are-not-franchise-opportunities\">business opportunities<\/a><\/strong> that are offered-in most cases, side-by-side with franchise opportunities.<\/p>\n<p>Do you know the <strong>difference<\/strong> between franchise opportunities and business opportunities? Watch the short video I produced to find out what they are.<br \/>\n&nbsp;<br \/>\n<iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/6r9cVWegVrk\" width=\"650\" height=\"399\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n&nbsp;<\/p>\n<h2>This Is Why Future Franchise Owners Feel Frustrated<\/h2>\n<p>It&#8217;s true; the number of franchise opportunities and business opportunities available these days are mind-boggling. It&#8217;s one of the reasons frustrated future <a href=\"https:\/\/www.thefranchiseking.com\/mcdonalds-franchisee-mayfield-heights\" target=\"_blank\" rel=\"noopener\">franchise owners<\/a> send me emails like these:<\/p>\n<blockquote><p>&#8220;<em>Joel, I&#8217;m wondering if you can help me. I&#8217;ve been searching for franchises for months, and I can&#8217;t seem to find one that makes makes sense for me. I&#8217;m so frustrated! Can you help me figure this whole thing out<\/em>?&#8221;<\/p>\n<p>&#8220;<em>Hi Mr. Franchise King, I hope you can help me. I&#8217;m having trouble choosing between 3 franchises that I really like. I can&#8217;t seem to get answers from anyone about money etc. how can you help me<\/em>?&#8221;<\/p><\/blockquote>\n<blockquote><p>&#8220;<em>Joel, I have no idea how to pick a franchise out. I don&#8217;t even know where to begin. I&#8217;ve spent a couple of weeks looking at franchise opportunity websites, but I&#8217;m really confused. I don&#8217;t know what to look for. Help<\/em>!&#8221;<\/p><\/blockquote>\n<p>Are you sensing a pattern?<\/p>\n<p>Most people don&#8217;t know <em>how<\/em> to find a franchise&#8230;a franchise opportunity that&#8217;s right for them.<\/p>\n<p>In addition, most people who are <a href=\"https:\/\/www.thefranchiseking.com\/franchise-matching\" target=\"_blank\" rel=\"noopener\">actively looking<\/a> for a franchise to buy have problems figuring out which ones are the good ones-the <strong><a title=\"profitable franchises for sale\" href=\"https:\/\/www.thefranchiseking.com\/money-making-franchise-opportunities-part-1-finding-them\">profitable ones<\/a><\/strong>-and which ones are the&#8230;<\/p>\n<p><a href=\"https:\/\/twitter.com\/FranchiseDog\" rel=\"attachment wp-att-17936\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-17936\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/dachshund-975336_640.jpg\" alt=\"dogs\" width=\"640\" height=\"426\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/dachshund-975336_640.jpg 640w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/dachshund-975336_640-320x213.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/dachshund-975336_640-620x413.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/dachshund-975336_640-600x400.jpg 600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p>(<em>Dogs<\/em>)<\/p>\n<p>The reason why most people looking at franchises these days are having problems choosing&#8230;and are <b>frustrated<\/b> &#8211; is because they&#8217;re starting at the wrong place. They&#8217;re starting with the franchise opportunities themselves instead of starting with-themselves.<\/p>\n<p>Again, they&#8217;re starting with the franchise opportunities themselves instead of starting with-themselves.<\/p>\n<blockquote><p>&#8220;<em>You need to start the franchise search with <strong>you<\/strong>. Forget about the actual franchise opportunities that are available. They don\u2019t matter. Not yet, anyway.&nbsp;What matters is you. Your top skills. Your personal characteristics. The things that make you tick<\/em>.&#8221;<\/p>\n<p>&#8211; From my article, <strong><a title=\"how do I buy a franchise\" href=\"https:\/\/www.thefranchiseking.com\/how-to-buy-a-franchise\">How To Buy A Franchise<\/a><\/strong><\/p><\/blockquote>\n<p>Seriously. Get off your computer or your Smartphone for awhile, and put together a list of your top skills and your dominant personal characteristics. <em>Then<\/em> hit <strong><a title=\"top 10 franchise websites\" href=\"https:\/\/www.thefranchiseking.com\/the-top-10-franchise-opportunity-websites\">the franchise opportunity websites<\/a><\/strong>. You&#8217;ll dramatically lower your level of frustration-I promise. That&#8217;s because instead of trying to figure out which franchises (<em>out of 3,000+<\/em>) to request information from, your long list will <em>only<\/em> include franchises that you may be a fit for. (<em>Because you&#8217;re basing your choices on what you bring to the table&#8230;your top skills and your dominant personal characteristics<\/em>.)<\/p>\n<p>&nbsp;<\/p>\n<h2>Another Reason Why Future Franchise Owners Are Frustrated<\/h2>\n<p>There&#8217;s another reason why future franchise owners feel so frustrated. And, it&#8217;s a biggie.<\/p>\n<p><strong>Today&#8217;s future franchise owners don&#8217;t know who to trust.<\/strong><\/p>\n<p>Take franchise consultants&#8230;franchise brokers&#8230; and <strong><a title=\"franchise coach\" href=\"https:\/\/www.thefranchiseking.com\/words-matter-a-franchise-coach-isnt-really-a-coach\">franchise coaches<\/a><\/strong> (<em>which are all the same<\/em>) for example. Should you trust them?<\/p>\n<p>Keep reading.<\/p>\n<p>&nbsp;<\/p>\n<h2>The Franchise Consultant Business Model<\/h2>\n<p>Here is what a typical franchise consultant agreement looks like.<\/p>\n<p>(<em>It&#8217;s actually a combination of the one I had -but not&nbsp;exactly&#8230;when I was a franchise consultant years ago, and others I&#8217;ve seen and heard about<\/em>.)<\/p>\n<p><a href=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/signature-962364_640.jpg\" rel=\"attachment wp-att-17934\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-17934\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/signature-962364_640.jpg\" alt=\"franchise consultant contract\" width=\"640\" height=\"480\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/signature-962364_640.jpg 640w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/signature-962364_640-320x240.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/signature-962364_640-620x465.jpg 620w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<p><em>Your role as a franchise consultant is to facilitate a match between a prospective franchise owner (candidate) and a company (franchisor) offering franchise and\/or business opportunities.&nbsp;<\/em><\/p>\n<p><em>You may use any type of marketing\/advertising to attract franchise candidates. Expect to see national marketing, too, since you will be paying into a marketing fund. &nbsp;<\/em><\/p>\n<p><em><strong>FYI:<\/strong> You will need to have a lot of candidates in your sales pipeline as most of them won&#8217;t end up buying a franchise. Make sure your marketing budget is high enough to keep your candidate pipeline full. <\/em><\/p>\n<p><em>Once you have an interested candidate, it&#8217;s your job to try to match the candidate to a franchise or business opportunity that we are contracted with. It&#8217;s the only way you&#8217;ll get paid since your franchise matching services are offered for free. You are allowed to contract with franchisors that are not in our inventory.<\/em><\/p>\n<p><em>You&#8217;ll be given access to our &#8220;inventory&#8221; of franchise and business opportunities. Currently, our inventory of opportunities includes 145 different franchises. That number can change at anytime since franchisors drop out or we contract with new ones. <\/em><\/p>\n<p><em><strong>FYI:<\/strong> We do vet franchisors somewhat. We make sure they are registered to sell their offerings in the U.S. and\/or Canada. We usually visit headquarters. We sometimes talk to existing franchisees. So, they are, in a sense, <strong><a title=\"pre-screened franchise opportunities\" href=\"https:\/\/www.thefranchiseking.com\/less-risky-franchises\">pre-screened franchises<\/a><\/strong>. We may use the words &#8220;pre-screened&#8221; in our national marketing initiatives, but we can&#8217;t and don&#8217;t guarantee they&#8217;ll less risky because of our vetting process.<\/em><\/p>\n<p><em><strong>How you get paid:<\/strong> You&#8217;ll receive <a href=\"https:\/\/www.thefranchiseking.com\/the-franchise-fee-dont-focus-on-it\" target=\"_blank\" rel=\"noopener\">a percentage of the franchise fee<\/a> upon your successful placement of a franchise candidate with one of the companies we are contracted with. Amounts will vary based on each individual contract. The minimum percentage you&#8217;ll receive as of this writing is 40%. So, if the franchise fee for a particular franchise is $40,000, you&#8217;ll get paid a commission of $16,000* of which 10% will be retained by us for membership in our consulting group. &nbsp; &nbsp;&nbsp;<\/em><\/p>\n<p><em>*In 2014, the average consultant commission in our group was $22,000.<\/em><\/p>\n<p><em><strong>Fees:<\/strong> In addition to the 10% fee taken out of every deal you make, a monthly marketing and technology fee of $750 is billed to you every month.<\/em><\/p>\n<p>So, that&#8217;s what a franchise consultant agreement looks like. You can see how they get paid. And, you now know why they are able to offer their <em>&#8220;Franchise Matching&#8221;<\/em> services for free.<br \/>\n&nbsp;<\/p>\n<h2>Why There Are Trust Issues In Franchising<\/h2>\n<p>Part of the reason trust issues exist in franchising has to do with the industry itself. It&#8217;s really difficult to get to the truth.<\/p>\n<ul>\n<li>The truth about how much money can be made as a franchise owner<\/li>\n<li>The truth about the franchise consultant-franchise candidate relationship<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2>Franchise Owner Earnings<\/h2>\n<p>Unless franchise owner earnings are clearly stated in the Franchise Disclosure Document (FDD) it&#8217;s a bit challenging to get the truth about how much franchise owners are actually making.<\/p>\n<p>And, even if earnings&#8230;sales figures, or a combination of the two <em>are<\/em> disclosed in the FDD, the figures aren&#8217;t exactly bullet-proof. It&#8217;s not like there&#8217;s a statement from the franchisor stating that you&#8217;re guaranteed to make the same amount of money listed in the actual earnings claim. So, now what?<\/p>\n<p><strong>Ignore Them.<\/strong><\/p>\n<p>Seriously.<\/p>\n<p>Personally, I don&#8217;t give a rat&#8217;s a%$ if franchisors share earnings claims or not.<\/p>\n<p>So, please don&#8217;t waste your time comparing FDD&#8217;s&#8230;putting together spreadsheets-or whatever it is you do to gather and\/or compare data. Instead, reach out to existing franchise owners. They&#8217;re the ones &#8220;<em>living the dream<\/em>.&#8221; They&#8217;re the ones who have invested their money into the franchise opportunity you&#8217;re interested in buying. They&#8217;re the ones to talk to.<\/p>\n<p><strong>Bonus Tip:<\/strong> if you&#8217;re looking into a franchise opportunity that discloses earnings claims in their FDD, share those numbers with the franchisees you contact. Ask them if the figures sound right. In most cases they&#8217;ll tell you. And, if you approach them right, they&#8217;ll tell you a lot more. It&#8217;s easier to get to the truth&#8230;to the heart of the matter, by talking with franchisees that are in the business you want to be in.<\/p>\n<p>You really do have to approach existing franchise owners the right way. If you don&#8217;t, you&#8217;ll never get the information you need to make an intelligent fact-based decision on whether or not to buy the franchise you&#8217;re interested in owning.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.flickr.com\/photos\/amagill\/3367543094\/in\/photolist-68vjKV-68zxeQ-9C9vCS-aFAPtx-pYSVGy-9ZA9J6-cXNz15-68zxij-aFDkRt-aFDet2-s684tk-bDwJ11-rAG5dm-bmm93i-s688Fi-55FLSR-bf3Nge-nQZguc-bu6sBd-8usD9K-657VsP-6oVWp-5oQysH-bbeUhH-61LYTT-brcZGM-8ismaU-qnZDsQ-aFB2Ba-4Kdou8-8HWvej-kyBTGB-bnFUG4-fKKcRD-knHgd-8fSEir-8ip6ZZ-cNdyo-xsM2Qu-9htwiK-fKuazu-snuFa5-royb3v-9FPrx5-bf3TAn-5z3f3L-bUVSpp-f54gtt-6c6Q6r-cEHZc1\/\" rel=\"attachment wp-att-17944\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-17944\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/3366720659_b746789dfd_z.jpg\" alt=\"money for franchise consultants\" width=\"640\" height=\"427\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/3366720659_b746789dfd_z.jpg 640w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/3366720659_b746789dfd_z-320x214.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/3366720659_b746789dfd_z-620x414.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/3366720659_b746789dfd_z-600x400.jpg 600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<h2>The Franchise Consultant-Franchise Candidate Relationship<\/h2>\n<p>Notice the word I <em>didn&#8217;t<\/em> use.<\/p>\n<p>That word: <strong>Client<\/strong>.<\/p>\n<p>And, please notice that the sample franchise consultant agreement above didn&#8217;t use the word, <strong>client<\/strong>, either.<\/p>\n<p>That&#8217;s because the candidate&#8230;the person using the &#8220;<em>Free Service<\/em>&#8221; that&#8217;s being provided by the consultant isn&#8217;t the client.<\/p>\n<p><em>The franchisor is the client.<\/em><\/p>\n<p>But, when you&#8217;re working with a franchise consultant you&#8217;ll &#8220;<em>feel<\/em>&#8221; like you&#8217;re the client. You&#8217;re made to feel that it&#8217;s all about <em>you<\/em>. All about <em>your<\/em> dreams. <em>Your<\/em> goals. The next sentence&#8230;<\/p>\n<p>When a $20,000 commission check (<em>from a franchisor<\/em>) is ready and waiting to be sent to your consultant for matching you up to a franchise they represent, your franchise consultants goals may become more important than your goals.<\/p>\n<p>It&#8217;s pretty hard for us humans to walk away from a 5-figure check. It was hard for <em>me<\/em> to do when I was a franchise consultant.<\/p>\n<p>Because of <strong>Dopamine<\/strong>.<\/p>\n<blockquote><p>&#8220;<em>Dopamine is a neurotransmitter that helps control the brain&#8217;s reward and pleasure centers. Dopamine also helps regulate movement and emotional responses, and it enables us not only to see rewards, but to take action to move toward them<\/em>.&#8221;<\/p>\n<p>&#8211; Courtesy of <strong><a title=\"dopamine\" href=\"https:\/\/www.psychologytoday.com\/basics\/dopamine\" target=\"_blank\" rel=\"noopener\">Psychology Today<\/a><\/strong><\/p><\/blockquote>\n<p>Powerful stuff, that Dopamine. Powerful enough to make <em>your<\/em> goals and <em>your<\/em> dreams less important than your consultants goals and dreams?<\/p>\n<p>All I&#8217;m saying is that you need to follow the money in franchising.<br \/>\n&nbsp;<br \/>\n<a href=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/krampus-1054885_640.jpg\" rel=\"attachment wp-att-17947\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-17947\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/krampus-1054885_640.jpg\" alt=\"e\" width=\"502\" height=\"754\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/krampus-1054885_640.jpg 426w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/krampus-1054885_640-200x300.jpg 200w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/krampus-1054885_640-380x570.jpg 380w\" sizes=\"auto, (max-width: 502px) 100vw, 502px\" \/><\/a><\/p>\n<p>That doesn&#8217;t mean that franchise consultant-brokers-and coaches are evil beings that are out to get you.<\/p>\n<p>But, you need to remember that this is all about <em>you<\/em>.<\/p>\n<p>It&#8217;s<em> not<\/em> about the franchisor.<\/p>\n<p>It&#8217;s <em>not<\/em> about a franchise consultant.<\/p>\n<p>&nbsp;<\/p>\n<h2>Buying A Franchise Can Be Frustrating<\/h2>\n<p>Purchasing big ticket items are inherently frustrating. It&#8217;s never easy.<\/p>\n<p>Was your last car-buying experience frustrating?<\/p>\n<p>How many televisions did you have to see and maybe even read up on before you bought one? Were you frustrated by all the choices?<\/p>\n<p>Do you remember how frustrated and stressed out you were when you purchased your first home?<\/p>\n<p>Every one of those experiences was a learning experience. Those experiences have left you better prepared for your next car&#8230;your next television, and your next house.<\/p>\n<p>Buying a franchise is going to be a learning experience, too.<\/p>\n<p>It&#8217;s just that the stakes are higher.<\/p>\n<p>&nbsp;<\/p>\n<p>Money image courtesy of&nbsp;Andrew Magill, <a title=\"money\" href=\"https:\/\/www.flickr.com\/photos\/amagill\/3367543094\/in\/photolist-68vjKV-68zxeQ-9C9vCS-aFAPtx-pYSVGy-9ZA9J6-cXNz15-68zxij-aFDkRt-aFDet2-s684tk-bDwJ11-rAG5dm-bmm93i-s688Fi-55FLSR-bf3Nge-nQZguc-bu6sBd-8usD9K-657VsP-6oVWp-5oQysH-bbeUhH-61LYTT-brcZGM-8ismaU-qnZDsQ-aFB2Ba-4Kdou8-8HWvej-kyBTGB-bnFUG4-fKKcRD-knHgd-8fSEir-8ip6ZZ-cNdyo-xsM2Qu-9htwiK-fKuazu-snuFa5-royb3v-9FPrx5-bf3TAn-5z3f3L-bUVSpp-f54gtt-6c6Q6r-cEHZc1\/\" target=\"_blank\" rel=\"noopener\">Flickr<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you&rsquo;ve been looking for a franchise to buy for any length of time, you know first-hand how frustrating the process can be. Some of your frustrations revolve around volume; the sheer number of franchise opportunities available. There are literally thousands of franchise opportunities to choose from. And, don&rsquo;t forget the hundreds of business opportunities [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":17931,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[2123,254,32],"tags":[1629,1530],"class_list":["post-17928","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-franchise-business","category-franchise-consultants","category-franchise-purchasing","tag-franchise-brokers","tag-franchise-owners"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>This Is Why Future Franchise Owners Feel Frustrated &#8212; The Franchise King\u00ae<\/title>\n<meta name=\"description\" content=\"Buying a franchise can be a frustrating experience. 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