Necessity versus Opportunity Franchising

So, you wanna be a franchisee...?

Being a success is anything, including being a franchisee, all comes down to what you do. Did you know that great aim of education is not knowledge, but action? We didn’t say that, a darling friend of ours Herbert Spencer did ... and it’s so true! We may learn stuff through education and experiences, but it is what we do with that knowledge that is the kicker.

Good pre-entry franchise education and due diligence will deliver a highly informed decision and good working relationships with your franchisor, team and customers. Undercooked pre-entry franchise education and due diligence manifest themselves in weird, wonderful and worrisome ways and are evident when a franchisee says ‘I didn’t know that’ ... ‘No one told me!’ ... ‘That’s the franchisor’s responsibility, isn’t it?!’

We could be tougher, but we wont. It involves swearing and throwing a tantrum. 

But know this ... whatever drives a prospective franchisee impacts the extent of pre-entry education and due diligence they conduct and ultimately, the decisions they make.

There is a spectrum of factors that drive individuals to consider entering into a franchise business opportunity. At opposite ends of the spectrum are the decision-making factors of necessity and opportunity.

If you believe you have limited or no better employment alternatives and view franchising as an immediate source of income and security, with decision-making and direction  all taken care of ... then you may be a necessity-driven prospective franchisee.  You may be strongly focused on income potential and demonstrate a greater sense of urgency to secure a franchise. You may want to speed through the franchisor’s recruitment process as a means of securing immediate income and cash flow benefits while heavily relying on the support and brand security of the franchise system. Necessity-driven prospective franchisees may make short cuts in pre-entry education and due diligence and, more dangerously, stretch the truth in regards to demonstrating your understanding of franchising, the extent to which you have sought professional advice and your current capabilities ... all out of necessity.

At the other end of the spectrum, if you are considering franchising out of opportunity, you will have other business and employment alternatives and it is simply a matter of determining which option will deliver the return, challenge or outcome you desire. Opportunity-motivated prospects may consider a decrease in salary or current income in favour of a lifestyle change, greater self-direction or speedier return on investment.Opportunity driven prospects choose to investigate the strategic elements of the business, such as concept sustainability, speed of return on investment and ability to maximise market share. You may be acutely aware of your current capabilities and are looking to partner with a franchise system to leverage and achieve personal goals.

Are you acting out of necessity or opportunity?