{"id":24530,"date":"2017-09-13T14:01:08","date_gmt":"2017-09-13T14:01:08","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=24530"},"modified":"2021-07-06T15:40:07","modified_gmt":"2021-07-06T19:40:07","slug":"are-franchises-really-worth-the-investment","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/are-franchises-really-worth-the-investment","title":{"rendered":"Are Franchises Really Worth The Investment?"},"content":{"rendered":"<p><a href=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/DunkinDonuts.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-24552\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/DunkinDonuts-620x413.jpg\" alt=\"are franchises worth the investment?\" width=\"643\" height=\"428\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/DunkinDonuts-620x413.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/DunkinDonuts-320x213.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/DunkinDonuts-768x512.jpg 768w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/DunkinDonuts-600x400.jpg 600w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/DunkinDonuts.jpg 1200w\" sizes=\"auto, (max-width: 643px) 100vw, 643px\" \/><\/a><\/p>\n<p>I get asked that question (<em>in some form or another<\/em>) all the time.<\/p>\n<p>The thing is, my answer-<em>the<\/em> answer actually, is a matter of opinion.<\/p>\n<p>Unless you look at what you get <a title=\"money you need to buy a franchise business\" href=\"https:\/\/www.thefranchiseking.com\/how-much-money-needed-to-buy-franchise\">when you buy a franchise<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<h2>The Deck Is Stacked In Your Favor<\/h2>\n<p>You get <em>so<\/em> much when you buy a franchise.<\/p>\n<p>So many tools. And a system. <em>A serious, and proven, bad _ss business system<\/em>.<\/p>\n<p>And let&#8217;s not forget the franchisor&#8217;s <em>experience<\/em>.<\/p>\n<p>From an article I wrote for American Express Open Forum:<\/p>\n<blockquote><p>&#8220;<em>They have experienced the trials and tribulations of a pure start-up business, in most cases. Let\u2019s use a pizza franchise for an example, since it\u2019s an easy one to visualize. Joey and Sal have been in the pizza business for years. (Before they decided to franchise their business) The early years consisted of things like getting their sauce just right, choosing locations for their pizza places, experimenting with different menu add-ons, figuring out how to hire the right people, keeping the books together, and making sure that the expenses stayed in line. It wasn\u2019t easy. They made a lot of mistakes that <strong>you<\/strong> won\u2019t have to<\/em>.&#8221;<\/p><\/blockquote>\n<p>You can <a title=\"franchise info open forum\" href=\"https:\/\/www.americanexpress.com\/us\/small-business\/openforum\/articles\/are-franchises-worth-the-money-1\/?linknav=us-openforum-search-article-link14\" target=\"_blank\" rel=\"noopener noreferrer\">read the rest of the article here<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<h2>So, Are Franchises Really Worth The Investment?<\/h2>\n<p>I guess I didn&#8217;t answer that question yet. Sorry. I will. Here goes.<\/p>\n<p><a href=\"https:\/\/www.thefranchiseking.com\/amazon-delivery-service-franchises\" target=\"_blank\" rel=\"noopener noreferrer\">Franchises<\/a> are definitely worth the investment. In general. Especially if you&#8217;re one of <a href=\"https:\/\/www.thefranchiseking.com\/what-everybody-ought-to-know-about-franchise-consultants\" target=\"_blank\" rel=\"noopener noreferrer\">these<\/a>.<\/p>\n<p>I wrote &#8220;<em>in general<\/em>&#8221; because for franchising to work, both parties need to do their part.<\/p>\n<p>Franchisors have to:<\/p>\n<ul>\n<li>Offer great products\/services<\/li>\n<li>Create tight business systems<\/li>\n<li>Use the latest technology<\/li>\n<li>Invent new offerings<\/li>\n<li>Provide field support<\/li>\n<li>Offer powerful marketing\/advertising templates<\/li>\n<li>Focus on franchisee profitability<\/li>\n<\/ul>\n<p><strong>Tip:<\/strong> Make sure your franchise research reveals that the franchisor does, in fact, offer <em>and do<\/em> all of those things for their franchisees.<\/p>\n<p><strong>Good News!<\/strong> All of my products show you exactly how to do flat-out amazing franchise research. Please <a title=\"look at the franchise king's products\" href=\"https:\/\/www.thefranchiseking.com\/definitive-guide-to-franchise-research\">take a look<\/a> at my proven franchise ownership products.<\/p>\n<p>&nbsp;<\/p>\n<h2>What You Have To Do<\/h2>\n<p>The first thing you have to do is get the following term out of your head.<\/p>\n<p>&#8220;<em>A Business in A Box<\/em>.&#8221;<\/p>\n<div style=\"width: 100%; height: 0; padding-bottom: 100%; position: relative;\"><iframe loading=\"lazy\" class=\"giphy-embed\" style=\"position: absolute;\" src=\"https:\/\/giphy.com\/embed\/Y8mYpYWkIYDao\" width=\"100%\" height=\"100%\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>\n<p><a href=\"https:\/\/giphy.com\/gifs\/okay-ride-Y8mYpYWkIYDao\">via GIPHY<\/a><br \/>\nBe Gone!<\/p>\n<p>To put it bluntly, there&#8217;s no such things as a &#8220;<em>business in a box<\/em>.&#8221; And to this day, a few franchisors continue to use that term when describing their franchise opportunity.<\/p>\n<p>You can read what I wrote about this <a href=\"https:\/\/www.thefranchiseking.com\/revealed-the-top-467-franchises-for-2020\" target=\"_blank\" rel=\"noopener\"><b>franchise<\/b><\/a> falsehood on my friend, <a title=\"business in a box article the franchise king and carol roth\" href=\"https:\/\/www.carolroth.com\/blog\/franchise-opportunities-about-those-businesses-in-a-box\/\" target=\"_blank\" rel=\"noopener noreferrer\">Carol Roth&#8217;s website<\/a>. Then pop back here, so I can show you what your role is in your potential franchise investment.<\/p>\n<p>&nbsp;<\/p>\n<h2>For Franchisees<\/h2>\n<p>In order for a franchisee make her investment in a franchise worth it, there are several things franchisees need to do. They include:<\/p>\n<ul>\n<li>Having enough working capital to make it through the early days\/months<\/li>\n<li>Attending training at franchise headquarters<\/li>\n<li>Participating in new&nbsp;product\/service training<\/li>\n<li>Using the franchisor&#8217;s business systems to maximum advantage<\/li>\n<li>Spending enough money on marketing\/advertising<\/li>\n<li>Communicating with other franchisees<\/li>\n<li>Getting involved in the local community<\/li>\n<li>Adding additional space or <a title=\"adding additional franchise locations\" href=\"https:\/\/www.thefranchiseking.com\/franchise-ownership-how-cool-would-it-be-to-own-multiple-locations\">units<\/a> when able<\/li>\n<li>Attending annual franchise conferences<\/li>\n<\/ul>\n<p>And, much, much more.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/image-of-two-way-street.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-24553\" src=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/image-of-two-way-street-620x320.jpg\" alt=\"franchising is a two-way street\" width=\"620\" height=\"320\" srcset=\"https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/image-of-two-way-street-620x320.jpg 620w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/image-of-two-way-street-320x165.jpg 320w, https:\/\/www.thefranchiseking.com\/wp-content\/uploads\/image-of-two-way-street.jpg 640w\" sizes=\"auto, (max-width: 620px) 100vw, 620px\" \/><\/a><\/p>\n<h2>Franchising Is A Two-Way Street<\/h2>\n<p>As you&#8217;ve seen, <a href=\"https:\/\/www.thefranchiseking.com\/how-to-buy-a-franchise\" target=\"_blank\" rel=\"noopener noreferrer\">franchising is really a two-way street<\/a>.<\/p>\n<p>For your investment to be worth it, both parties need to be in it to win.<\/p>\n<p>The franchisor needs to focus on keeping the organization running smoothly. Investing in the right technology is one way to keep things humming along nicely.<\/p>\n<p>In addition, <em>the franchisor needs to always be looking ahead<\/em>. New products\/services must be offered. The latest marketing techniques need to be leveraged. Franchisee <a title=\"franchise profits\" href=\"https:\/\/www.thefranchiseking.com\/money-making-franchise-opportunities-part-1-finding-them\">profitability<\/a> must remain top of mind day-in and day-out.<\/p>\n<p>Franchisees (<em>you?<\/em>) need to have enough startup money and enough working capital.<\/p>\n<p>Franchisees need to attend new <a title=\"franchisee training program\" href=\"https:\/\/corporate.mcdonalds.com\/mcd\/franchising\/us_franchising\/why_mcdonalds\/world_class_training.html\" target=\"_blank\" rel=\"noopener noreferrer\">training<\/a> when needed; for example, when a new product or service is introduced.<\/p>\n<p>In addition, informal relationships with other like-minded franchisees need to be cultivated. Several heads are <em>always<\/em> better then one-especially if everyone is experiencing the same issues.<\/p>\n<p>(<em>Franchising is not perfect. Stuff occasionally goes wrong<\/em>.)<\/p>\n<p>And growth.<\/p>\n<p>Franchisees need to be on the lookout for growth opportunities that can help them <a title=\"reaching your dreams as a franchise owner\" href=\"https:\/\/www.thefranchiseking.com\/find-money-making-franchises-with-the-franchise-king\">reach their dreams and goals<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<h2>Worth The Investment?<\/h2>\n<p>In the final analysis, if you choose a good franchise opportunity that&#8217;s run by a quality franchisor, and your skills are a good match for the business, a franchise business opportunity is usually worth the investment. But you have to have enough money to do it.<\/p>\n<p>What do you think?<\/p>\n<p>If both parties do what they need to do, do you feel franchises are worth the investment?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I get asked that question (in some form or another) all the time. The thing is, my answer-the answer actually, is a matter of opinion. Unless you look at what you get when you buy a franchise. &nbsp; The Deck Is Stacked In Your Favor You get so much when you buy a franchise. So [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":24552,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[32,1441],"tags":[1849],"class_list":["post-24530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchise-purchasing","category-franchise-q-a","tag-invest-in-a-franchise"],"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>Are Franchises Really Worth The Investment? &#8212; The Franchise King\u00ae<\/title>\n<meta name=\"description\" content=\"Are franchises really worth the investment? It&#039;s a popular question that gets asked pretty often. 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