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Franchising, the Odds on Favourite - or Adventures in a Dream World

Franchising, the Odds on Favourite - or Adventures in a Dream World

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Franchising, the Odds on Favourite -
or Adventures in a Dream World
By Sidney Robbins

This is to prevent you taking that small step before you leap into the dark - without preparing a safety net!

This book is based on years of experience as a franchise consultant, trainer and course developer. After witnessing numerous disasters, where franchisees lost everything, I felt compelled to dispel some of the myths and to advise prospective franchisees to be careful.

For many people, franchising is shrouded in mystique. It is hailed as the panacea to all business ills; the sure path to riches; a concept where few fail; but so often, it is the naïve and gullible who find themselves swelling the statistics of those who somehow manage to fail – against all odds!

There are too many exponents of franchising who, with a combination of wishful thinking, thumb sucks, and selective figures end up believing their own propaganda. But almost everything they say is based on misleading statistics, and on the mistaken premise that they are 'experts' in a world of ignorance.

Often entering into a franchise is like going into marriage.
It's tough! Anyone who tells you differently about marriage has read too many romances or simply hasn't given it any thought at all. So when you marry in haste, the outcome often mean repenting at leisure. The break-up is the most painful part.

We've seen too many franchisees who remind us of people driving cars with faulty brakes, while heading confidently towards the edge of a cliff. When alerted to looming disaster, these franchisees keep giving the same reply: "Relax, everything's fine and under control."
Then, whooosh! Over the edge they go.
Then the franchisees wake up to the real world, and find they’ve fallen into a trap for the unwary. The wild claims and promises evaporate in the stark light of day.

In spite of all the publicity; the hype; the glossy pamphlets and brochures; and the sales talk – the general public remains ignorant and naïve. It is astounding how often they fall prey to unscrupulous operators.

Franchise World Magazine, May-June 1997 ran a quote from Franchise Growth and Failure in the U.S. and the U.K.: A Troubled Dreamworld Revisited, by Professor John Stanworth with John Purdy and Stuart Price. It read: ‘Pulling no punches, the survey says that it appears quite possible that only 50 per cent of franchisors survive their fourth year, and that there is now overwhelming evidence to suggest that only between a quarter and a third survive their 10th year.'

So much for all the hype and pressure selling to prospective franchisees!

In its true form, franchising is an excellent concept.

The author has spent over 27 years consulting and dealing with all aspects of franchising. He has written a course, lectured and then wrote this book. He has had to deal with the successes and the failures. It's the failures, where one experiences the heartbreak - where people lose everything. Most of these disasters could have been prevented had people understood the fine print in franchise agreements. With all its warts, it is still a good business concept when handled correctly.
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