Franchising

As a former franchisor and co-author of Franchising 101, I was asked by a publisher to write another book on franchising and therefore I had to come up with an outline and to a table of contents. Of course, the biggest question is; what should be in a franchising book to be of value to the reader? Indeed, it would need an introduction, acknowledgments, foreword, appendix, resources, index, but what about the meat in the middle?

The first thing I believe that needs to be in a franchising book is to explain to the reader, why Franchising is often misunderstood. You see franchising is a triple win situation. It is by far the greatest business model ever created in the history of mankind and the franchisee is in business for themselves, but not by themselves. Franchising also has advantages as the success rates are much higher than in a normal small-business. Franchisees enjoy the fact that the learning curve will not cost them an arm and leg, because the franchise or has already gone through it all and worked out the kinks.

A franchising book must make the Case for Franchising and its Economies of Scale. Franchisees learn quickly that the franchise they are buying is part of a Proven System with a Track Record, and usually a good significant amount of Brand Name Recognition; and Training well, that is provided too. Some will tell you of the drawbacks of franchising, and they will make the Case against Franchising. When you own a franchised business it is much more Structured and Controlled than if you ran a small business by yourself.

Franchising is also Over Regulated and you will have to deal with Litigation and Lawyers. Of course, nothing good in life is ever easy and franchising is a good thing, but it is no walk in the park. I think a franchise book ought to explain both the good and the bad in franchising. I also believe a franchising book should talk about how someone might take their existing business and franchise it. There will be a lot of Capital needed, the entrepreneur will have to form a Business Plan, develop a team and worry about Regional Variations.

Those who wish to franchise their own business need to understand when things get going - it can be quite difficult to manage - a Rocket Ship Growth Curve. Any time a business grows fast there are Cash Flow realities. In generally it takes $1 million to start a franchise system, and anything less will leave you in the poorhouse and a good chance for bankruptcy.

A franchising book should explain to a potential franchise buyer; How to Choose the Right Franchise for You, as well as Internet Searching and Investigation, Rating your options and Determining Your Level of Investment. The franchise buyer must also consider what type of franchise business they wish to buy; a Longtime Established or New Franchise System. Once they choose which franchise to buy they should be contacting Franchise Owners of that system and constantly be digging for answers. The franchise buyer must also understand the UFOC and franchise documents, so that they know what they're getting into.

Lastly, I believe the future of franchising is an important discussion, especially for national economies and emerging nations trying to get a foothold or allow for foreign investment. Franchising can be a way to assist in Exporting Brands. Since franchising is such a great format, it might also be used to unite the nations of the world - Franchising the World, if you will.

Perhaps in the far half future, we might be Franchising Space Colonies too. I believe all these issues should be discussed in a franchising book, and therefore I have decided to write one. This will be my 10th book, and it will contain information that can be found in many of my over 200 articles on franchising. This book needs to be written, because there is a lot more about franchising than meets the eye. Sincerely, Lance.