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Last week a reader made the comment that he “had quite a few business associates encouraging him to franchise his retail business.” My response dealt primarily with issues of feasibility and the importance of quality systems. However, there is indeed another very important element in franchising and the reader nailed it. The ‘intention and psychology’ of franchising is just as critical as any other factor. Here’s what I mean.
What I have found over the years is that the trigger that sets the entrepreneur to thinking about franchising comes in the form of encouragement (endorsements) from friends, clients, or customers. This is especially true when a business is well thought out and presented to the world ‘as an organized, systemized venture’. In opposition, consider the haphazard eatery with little or no pizzazz. I have written several articles on the psychology of franchising. One of them that can be found at http://www.bibbygroup.com/franchising/franchising-my-business1.html. Although it can be a very positive trigger, the business owner must still keep their wits and conduct serious due diligence and feasibility.