Buying a Franchise: Finding the Time
Buying a franchise is a big commitment. The decision to own a franchise will affect the lifestyle of franchisees and their families. Before buying a franchise, potential franchisees should calculate the hours of work needed to make a success of the business. In order to run a thriving franchise, owners will have to work ‘at’ their business and ‘on’ their business. Franchisees will have to put in effort during normal hours of business operation as well as after hours.
Franchisees can work up to 13 hours per day at their business. That time might involve eight hours during the working day as well as five hours of administration work ((reviewing employee applications, bookkeeping, ordering inventory). The average US and Canadian business owner makes only $8 per hour (considering the hours that entrepreneurs put into their business). The following guide can help franchisees discover how much time they will need to run a franchise.
Tips about Time
. A franchisee has to commit his time in different areas of franchising.
– Training phase
– Start-up phase (1-2 years)
– Business operation (for the remainder of the franchise contract)
. A franchisee should ask early in the process about required hours.
. A franchisee should confirm the commitment with other franchisees at different levels.
. A franchisee must remember that required time will vary (12 hours, 14 hours, 16 hours,…)
Franchising does not equate to eight-hour days. Franchisees can work just eight hours but it will take them much longer to achieve their desired level of success. If a franchisee wants to sell the franchise after a couple of years, their business might not be providing the level of income expected by many potential buyers.
Franchisees do not always have the freedom (for vacations, free time,…) that the general public perceives as being the life of the franchise owner. Running a franchise takes a major chunk of time. Yet owners can optimize that time by making sensible decisions and acting wisely in the operation of their business.
Franchisees should do their homework before purchasing a franchise. They should educate themselves about various franchise models and industries. Franchisees should choose a franchise model which is complementary to their skill set. When they purchase the franchise, owners must hire, train, and empower capable staff. Such measures will save time for owners in the long term.
In most cases, franchisees can have a partner to share the business responsibilities. Owners must remember, however, that franchise systems have a set of restrictions dealing with partnerships. The standard restriction requires that a partner must maintain 51% ownership (controlling interest) – whether that partner works in the business or is a silent partner. There are also restrictions around the legal structure of partnerships. Since there is flexibility around this issue, franchisees can work with their franchisor to work out the details.
Bringing in a partner may free up some time for a franchise owner. Yet the general rule about partnerships within franchise systems is the same rule that franchisees should always keep in mind. Make an educated and informed decision!
Buying a franchise is a big commitment. The decision to own a franchise will affect the lifestyle of franchisees and their families. Before buying a franchise, potential franchisees should calculate the hours of work needed to make a success of the business. In order to run a thriving franchise, owners will have to work ‘at’ their business and ‘on’ their business. Franchisees will have to put in effort during normal hours of business operation as well as after hours.
Franchisees can work up to 13 hours per day at their business. That time might involve eight hours during the working day as well as five hours of administration work ((reviewing employee applications, bookkeeping, ordering inventory). The average US and Canadian business owner makes only $8 per hour (considering the hours that entrepreneurs put into their business). The following guide can help franchisees discover how much time they will need to run a franchise.
Tips about Time
. A franchisee has to commit his time in different areas of franchising.
– Training phase
– Start-up phase (1-2 years)
– Business operation (for the remainder of the franchise contract)
. A franchisee should ask early in the process about required hours.
. A franchisee should confirm the commitment with other franchisees at different levels.
. A franchisee must remember that required time will vary (12 hours, 14 hours, 16 hours,…)
Franchising does not equate to eight-hour days. Franchisees can work just eight hours but it will take them much longer to achieve their desired level of success. If a franchisee wants to sell the franchise after a couple of years, their business might not be providing the level of income expected by many potential buyers.
Franchisees do not always have the freedom (for vacations, free time,…) that the general public perceives as being the life of the franchise owner. Running a franchise takes a major chunk of time. Yet owners can optimize that time by making sensible decisions and acting wisely in the operation of their business.
Franchisees should do their homework before purchasing a franchise. They should educate themselves about various franchise models and industries. Franchisees should choose a franchise model which is complementary to their skill set. When they purchase the franchise, owners must hire, train, and empower capable staff. Such measures will save time for owners in the long term.
In most cases, franchisees can have a partner to share the business responsibilities. Owners must remember, however, that franchise systems have a set of restrictions dealing with partnerships. The standard restriction requires that a partner must maintain 51% ownership (controlling interest) – whether that partner works in the business or is a silent partner. There are also restrictions around the legal structure of partnerships. Since there is flexibility around this issue, franchisees can work with their franchisor to work out the details.
Bringing in a partner may free up some time for a franchise owner. Yet the general rule about partnerships within franchise systems is the same rule that franchisees should always keep in mind. Make an educated and informed decision!
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