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Two Ways to Become an Even Happier Franchisee From Start to Finish

Franchise business operators are always looking for ways to improve their chances of success and contentment within their franchise system. This makes real sense considering the large influence business operation can have on life and happiness.  


Two ways to improve your chances of success and contentment as a potential franchisee: consider potential franchisors as belonging to two categories and dedicate yourself to understanding the aftermath of franchise agreements.  


What two categories can franchisors belong to? Loosely put, there are franchise businesses that have been around the block, seen a thing or two (or five) and there are those that are newer on the scene, perhaps fresher in some ways. Your job initially is to decide which type of franchise best suits your personality, your needs, and your vision as a franchisee. Is it the newer, fresh-off-the-press type of franchise that’s still ironing out its own vision? Or is it the stalwart brand that’s world renowned and quite set in terms of policy and image? 


The value of placing franchisors into these two categories lies in the power of negotiation. If your plans for business management are best laid with a franchise business that’s open to negotiating certain terms of the agreement, more than likely a younger franchise may offer that flexibility. Negotiations can open the way for franchisees to take the initiative in ways that are important to them, perhaps related to advertising, for example.  


Looking for a way to grow with a brand and help it to develop in ways that best reflect your personal talents? Newer franchises are often still creating an identity, and franchisees contribute to that identity greatly as time passes. Protected territory access, rights of first refusal, and opportunities to greatly contribute to brand development are three ways that younger franchises offer a unique kind of flexibility that certainly changes as brands develop and expand.   


Another valuable way to promote happiness as a franchisee is to thoroughly research what happens after a franchise agreement ends, and how you plan to prepare for the future outcome of your initial investment. In particular, how would you like to handle the resale of the franchise and how does your potential franchisor wish to proceed?  Are your ideas in alignment according to the FDD?  


Things to consider aside from the length of the initial agreement include how much new franchisees will be expected to pay in royalties for the location (same or higher rates?), which can influence the amount of the sale and thus the selling franchisee’s profits. Additionally, what requirements imposed by the franchisor indicate a potentially diminished resale value or a costly resale process, such as refurbished locations requirements or a sizable resale fee? 


Franchisees must consider their options carefully and closely scrutinize their own personal aims to best navigate how to invest their assets. A long term view of the overall relationship between a franchisor and franchisee, regardless of the age of the franchise system, certainly involves evaluating whether the relationship will bring genuine happiness to you as a franchise partner. Whether the outcome and eventual resale will make for an amicable conclusion to the agreement must be considered from the start. 

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