For the franchisor, the decision to expand via the franchise model already implies that two major choices have been made. One is the use of OPM (other people’s money).
The other is the use of OPT (other people’s time). In that the franchisor grants the use of its name (trademark/s) and operating system with conditions defined in the ‘franchise agreement’, the franchisee becomes an independent owner of a given location (or territory), and must manage the business as directed by the franchisor. In other words, the franchisor not only collects fees from the franchisee, the franchisor has a committed location manager as well.
On the other hand, the decision to buy a franchise implies that the franchisee is willing to trade off total independence and operate in accordance with the ‘franchise agreement’ (as well as pay ongoing fees) in exchange for a relationship with the franchise network.
That relationship, if the franchise is solid, should equate to excellent future services for the franchisee long after the initial training and set-up are a thing of the past. Buying a franchise is serious business, but unfortunately, most buyers never complete serious franchise due diligence and consequently are often surprised with what they have purchased after the formal agreement is signed.