Niche vs Broad

A common mistake made by potential franchisees in their determination process is that a general, more broad franchise is the way to go. No one is quite sure why this route is so well traveled. Perhaps their quest for great wealth has clouded their vision. Nevertheless, the niche franchise road could be a smoother ride.

Don’t get me wrong. There are still plenty of tricky bridges to cross when choosing a more specific audience. Less name brand appeal is one obstacle, for example. But on the flip side there is also less competition. Big name franchises appeal to the masses, yes. But by finding a franchise with a specific market you will ultimately shrink both your audience and your competition simultaneously.

With a more specific audience, advertising and marketing your franchise will be that much easier. You can spend more time promoting yourself instead of desperately trying to showcase how you are better than the big guys. As your core audience becomes more enticed, word of mouth will spread, and your business will grow.

And of course there is the expertise factor. Chew on this: as a consumer would you rather approach a person who knows everything about one topic or someone who has more extensive broad knowledge? Probably the former; you wouldn’t go to your local walk in clinic for a painful tooth ache just like you wouldn’t go to a widespread fast food restaurant for your anniversary dinner.

UFOC Negotiation

Humans are born negotiators. It’s natural. After all, before paper money the only way to acquire goods and services was to barter. Even in present day, it is possible to negotiate prices for things as small as a bushel of tomatoes at your local farmer’s market to the more significant haggle process of purchasing a new car. Why, just yesterday I negotiated the security deposit for my new apartment.

We try to alter situations so that we can feel as if we are getting the best possible deal. Saving money makes us feel good. And the bigger the purchase, the bigger the haggle, the better we feel.

So it is only natural that many potential franchisees would attempt to negotiate the UFOC for the particular franchise they are interested in purchasing. Why not? You have a lawyer (hopefully) and that is what lawyers do, alter contracts. But in a case such as this it is necessary to turn off your primal instincts and continue reading.

There are several states which require franchisors to register their franchise agreements with them. And if the UFOC on file varies at all from the one you are trying to sign chances are the state won’t allow it and the franchisor won’t jeopardize their relationship with the state just to satisfy you.

In some cases, the fact that a franchisor is willing to budge at all with their agreement terms might be a sign of a failing franchise, one that is desperate for money. And the last place you want your investment is in a franchise standing on shaky ground.

Of course there are exceptions to every rule. Younger franchises might be more willing to negotiate. And with any franchise, site location should be primarily up to the franchisee. If it isn’t that is one clause that should be altered.

Franchise Trade Shows

The hard part is over. You’ve assessed your finances, determined what industry you are interested in, and now you’re ready to narrow it down to the chosen one. The best way to examine your options is to attend a trade show.

First things first -- more research. If possible, obtain a list of participating franchises and narrow them down to the ones in your interest and price range. Then do a little investigating. Google the franchisors and see what you can find. Start a list of any possible questions or comments you might have. A good short list would be the initial investment required, a typical day in the franchise, and product supply information.

The day of the show it is important to keep a few things in mind. The franchises that are at the trade show only make up a very small percentage of those that are available for you. It is also essential to remember that you are selling yourself to these companies as well. You want to be taken seriously as a prospect so wear a suit and bring extra business cards.

Be sure to collect any handouts supplied by the franchises that interest you the most. Leave your contact information and get theirs. After the show organize any materials and set up meetings with representatives from those you feel most serious about.

Franchise trade shows are a great way for shoppers to examine the market and get a lot of information up front. And the best part of trade shows? They happen often and in most major cities.

-- Lady McFranchise