|
Is it good to go with a startup franchisor with good potential or with an established one?
I want to get into a child-care franchise business and am debating whether I should go with a franchisor such as Growing Room, which has three centers, and a CEO who was named 2004 National Small Business Person of the Year. It doesn't have name recognition and doesn't provide year-round training, but the fees are minimal! Versus a franchisor like Kiddie Academy, whose fees are huge, but it is a national franchisor with a good reputation, has a brand name and a good training program.
Asked by shweta
Posted: Wednesday, August 20, 2008 | Found in Franchises
|
|
|
You've hit the nail on the head in terms of the choice you have to make--do you go with a very well-established brand with good support but with higher fees or a new brand with marginal support but low fees? The answer depends on your tolerance for risk.
You'll probably get what you pay for in either case. You should pay less for low levels of support and no real brand presence in the market. On the other hand, there is a lot of potential excitement getting involved in a startup where the answers have to be invented as you go along.
If you're comfortable being the guinea pig and assuming more risk, then the startup is something you should consider. If you're not, then don't. Remember that someone had to be the first franchisee of many of the huge systems you see in the market, so it can work. But many others who tried to be pioneers didn't survive the journey.
Jeff Elgin has almost 20 years of experience franchising, both as a franchisee and a senior franchise company executive. He's currently the CEO of FranChoice Inc., a company that provides free consulting to consumers looking for a franchise that best meets their needs.
|
More Questions from Franchises
 Recent Articles & Resources
Insight from Business Experts
Can You Be ‘Counter-Cycle?’
Running a small business is a tough living. There is no reliable paycheck, no one pays your benefits, and the buck always stops with you. Not only are the rewards uncertain, but the work is challenging. A few people must fill all the same functions as large businesses: planning, sales, product, finance/accounting, ...
Turning Your Business Dreams Into Reality: Managing The Critic
Whether you're a solo entrepreneur, a small business owner, or a corporate executive, one of the things that can drive you absolutely nuts is trying to figure out how to silence the inner critic that rears its ugly head and stomps your business dreams into the ground whenever you try ...
The Art of Laying People Off
I hope that you never have to lay off or fire people, but the reality is that you will as you advance in your career. If you are scoffing (“Guy, you are clueless: We’ll never downsize, because we’re growing so fast, and I’ll never make a bad hire”), then you’re ...
Review of Guy Kawasaki’s “Reality Check”: Refreshingly Irreverent and Useful
"The Art of the Start" was my first introduction to Guy Kawasaki. I thought it was good.
Reading his posts here on the OPEN Forum, was my second experience. I thought those were good too. Then following and being followed by Guy Kawasaki on Twitter piqued my ...
|
|
