Franchises must match owner's needs, goals

by Eric Olson

SBJ Reporter

eolson@sbj.net

More than 320,000 small businesses, employing more than 8 million people, make up the U.S. franchise sector, according to the International Franchise Association.

Because buying into a franchise can be a costly move with start-up costs in the millions for the bigger-name franchises the selection process is critical, according to Randy Ehrlich, business franchise coach with The Entrepreneur's Source. Ehrlich is a franchisee himself; The Entrepreneur's Source is a national business ownership consulting company based in Southbury, Conn.

Ehrlich, who has 22 years of experience as a franchisee and franchise coach, said the key is finding the franchise concept that satisfies an entrepreneur's goals, needs and expectations. He advises clients to stay away from the "wows" and look for the "hows."

"Just because it is a top franchise doesn't mean it is the best franchise," Ehrlich said. "A lot of people will use that top 10 list to drive their discovery process. There are a lot of things that really need to be explored."

Ehrlich's formula:

learn about the franchise world (statistics, success rates);

discover detailed goals and expectations of business (strengths and weaknesses, financial opportunity);

explore business models; and

join a franchise that satisfies needs (lifestyle and family preferences).

Ehrlich suggests one more thing: get insider information. "The biggest key is to talk to current and active franchisees within the system," he said.