The rules in franchising are said to be helping the consumers, but that is not factual. The rules in franchising are to put up barriers to entry and help the status quo and allow franchise attorneys to siphon money from the very lucrative industry sector. Of course generally no one wishes to admit these issues, it is so as sure as my opinion and 20 years of observation in the industry accounts for something.
The hardships for start-up franchisors are intensive and relatively stacked against them. Still some make it despite the trips and traps. To start a franchising company today and become a franchisor will require a million dollars liquid and the availability to get more or borrow as it grows. It is often less expensive to start a Business Opportunities selling company.
Of course if you choose to run with that Biz-Op Crowd there will be an inherent level of mistrust going in from the buyers, so you must know that. Still last liar wins, and there are plenty of Biz-Ops blowing smoke out there, it is pretty sickening.
My thinking is that unless the business that is to be franchised is a totally emerging trend, technology or service that a franchisor ought to have been in business in multiple locations for 10-years prior to franchising. Or at least have some serious team members on the board who have been thru it all and know the industry back-wards and forwards.
You know it is kind of like that book “E-Myth" by Michael Gerber; until you have your current business running perfectly; well you really have no business selling businesses to others. This of course is my mindset. But we live with Free-Markets (or the illusion of) and that means the right to free-contract and thus there will be people proving the Peter Principle who come and go. Indeed, there is no easy way to franchise. There is no easy way to sell Biz Ops either.
If you are considering either selling franchises or the problems with Biz Ops, then you should know of the issues out there. Especially with Biz Ops as there is so much Fraud there; it makes you want to question the entire idea of commerse. Read this:
I think there is good information out there for those considering selling businesses and would recommend if you are considering entering the business selling business that you get a Robert Bond's “Franchise Guide" and check out the listings available to see how they are offering their systems, then pick up an Entrepreneur Magazine and a couple of others and sit in Barnes and Noble Coffee shop and take notes, if you have not already.
L. Winslow is a Economic Advisor to the Online Think Tank, a Futurist and retired entrepreneur. Currently he is planning a bicycle ride across the US to raise money for charity and is sponsored by http://www.Calling-Plans.com and all the proceeds will go to various charities who sign up.