Washington Business Daily

What is your opinion on Franchises...? How do you think it relates to globalization...? Are they a good idea?

Do you think architecture has any play in franchises...? What do you think of Franchises having unique architecture, yet with a sence of brand identity...?

Public Comments

1. I feel architecture has a huge impact on franchising. What is the real purpose of buying into a franchise anyway? I mean if you think about it you are really paying for brand awareness. You are paying for their name to make your marketing that much more powerful. If you leave their design structure for the most part and only keep a portion of it you are losing the true marketing power that you have and will only hurt YOUR OWN business. If you don't want to stick with the total brand compliance of a franchise then I recommend not purchasing one and keeping that royalty money for yourself. Otherwise, jump in, open the franchise, use their name power and design look to be noticed. They have done a huge part for you in getting the name out there in the average home. Use this to your advantage. That is -- in fact -- the best reason to open a franchise in the first place.
2. Franchise is just a description of a legal relationship. There are good ones and bad ones. A McDonald's franchise is just like a license to print money. A franchise from some new, untested corporation would be no prize, unless you have what it takes to make it go. There are plenty of different ones and you need to investigate thoroughly before you put your money down. As to unique architecture, do you mean each location is unique, like McDonald's, or do you mean the entire franchise has a unique design they use, such as Der Weinerschnitzel? I think if you can go with a franchise that lets you personalize your own shop, and you do it in a way that is appropriate to the location, you are ahead of the game. On the other hand, if it's going to be recognition as the main factor, and it's on a main highway or thoroughfare, where the whole idea is to be recognizable a long way off, that might work. You really have not given us enough information here. You need to research carefully; I can't emphasize that enough. What does Wall Street think of your corporate people? How do franchisees in neighboring areas like the arrangements with HQ? Not just the money, but the sense of satisfaction overall.
3. Franchises are good if you have good to fair credit and the upfront franchise fees as well as first 6 months of operating cash flow available. Be careful and check your area competition first, always request the a copy of the franchise UFOC prior to signing anything they are required to give this to you prior to signing, this will disclose all hidden fees and charges you will have. I own a franchise and just about folded my business due to cash needed initially the first year and finding employees who help. Franchisors only give you the tools to gain the advantage over your competitors but you must make sure that you follow thru with the tools they give you. Remember that you will also have fees monthly to pay to the franchisor and you are limited sometimes on territory area and product line. I would not purchase a franchise if I had to do it all over again, as the money that I spent initially and fees charged monthly I could have made more doing it myself. Owning a franchise requires you to have higher gross sales as well as higher costs to your customors to maintain same profit margin as your competitor who does not have all the extra overhead. The key to any business is a plan for your operation, marketing, sales, production/employees. Hope this helps