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What kind of experience is required for someone to buy a franchise?

I'm considering a franchise because of my lack of business ownership experience, but still, I'm wondering what type of experience is most required? Thx.

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Answers (8)
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May 31, 2017
Jon Holmquist
Edgemaster Model 400 sharpener
President
Marion County, OR

Leo, the experts below have given you the guidence you need. Just read everything and consider what is said can make the difference. If you want help from a non-expert just an everyday dude who is doing it and following the people's advice, feel free to call me and just vent. I may cover something they haven't since everyone looks through a different set of eyes. Good luck. Jon at Edgemaster Mobile

Sep 24, 2009
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FindMeAFranchise LLC
Jefferson County, KY

Leo---I will add to the answers below by saying....at the end of the day, its about running a successful and profitable business. Therefore understanding what I call the "emotional" side of business is extremely helpful because decisions must be made at times that have nothing to do with whether it's a franchise or non-franchise. You can learn about the logistics of business. What I see with clients that have little business acumen, is that they struggle with making the transition from employee to employer, therefore they tend to work in the business and not on the business, making them overwhelmed in a short period of time, causing them to make bad business decisions. My advise is to use your franchisor as a business coach whenever possible or find someone local that will keep you on track---at least your first year in business. It will be worth the money spent. Hope this helps. Tamme@findmeafranchise.com

Apr 7, 2009
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Franchise Advisory Group
PA

Leo,
The fact that you have lack of business ownership experience is all the reason you need to look at Franchises. Franchises are designed for people who have no business ownership experience and that is what makes the industry so unique. Most Franchisors want their Franchisees to be the CEO's and CFO's of their companies, so I do agree with comments below that management and people skills are a must. As you investigate each Franchise, find out what they expect the owner to do in the business. For example if the Franchise expects the owner to go out and sell and that is not something you want or is capable of doing, than this Franchise is not for you.

Apr 4, 2009
Fayaz Karim, MBA, CA
Subway Valuations, Business Searches
Consultant
Orange County, CA

Nice answers below
You need business skills, people skills and marketing skills in general unless it is industry specific-you need to be an accountant type for an accounting franchise to work out best for you. If you see every Tom , Dick and Harry running a food franchise, you do not need food experience. The franchisor teaches you how to make toast if you need to know that. Work on business skills, understanding financials statements, some basic legal matters, licensing rules and such. The franchisor will most probably cover these items with you in comprehensive training

Apr 3, 2009
Rob Goggins
Great Clips, Inc.
Vice President of Franchise Development
Carver County, MN

Leo, the only other insight I can add here is that if/when you approach local banks to secure financing be prepared for a similar question from the lender(s). Often if a franchise is relatively new in your market the lender will ask if you have any experience in the industry. Although some franchise systems need you to have certain industry-specific knowledge or skills, most do not require it. Be sure to ask the franchisor to help you prepare for those discussions. Better yet, the franchisor should have some lender partnerships where the lender is comfortable with the franchisor's business model and understands that most of their prospective franchisees may not have industry experience.

Mar 25, 2009
Eric Little
Right at Home, Inc.
SVP
Douglas County, NE

Hi Leo. Elza's answer below is spot-on. In addition, when you decide to research a franchise, make sure as part of that process you ask the current franchisees about their background when you talk to them. Is there a common theme among the ones who are doing well? Do they have "industry" experience, or did they leave the corporate world looking for a business that would utilize the skills they have fine-tuned while working for someone else? Hope this helps.

Mar 24, 2009
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PowerHouse Franchising
Partner
Maricopa County, AZ

The answer to this question will lie in what the franchisor requires for business acumen and what level of franchise the candidate is looking at purchasing i.e. single unit, multiple unit, area development, etc. Typically the franchisor will have an outline of their best possible candidate which will vary immensly from concept to concept.

Examples of the variance can be from A Medical franchise may require a doctor to own completely or at least a big percentage compared to an athletic training concept that may not want you to have any experience in the personal training industry at all.

The potential franchisee needs to complete their due diligence on any concept they inquire about to see if their particular experience will bode well for each seperate concept.

Mar 23, 2009

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