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<< Previous   of   Next >>   ADVERTISEMENT   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Monday, October 6, 2008 Franchise a good bet if you're starting out By Pat Sisneros and Lynne Munoz In our last column, we talked with two business owners who just started a franchise. This time, we wanted to hear from the veterans. David Jones owns six Subway restaurants from Everett to West Seattle. Dale Christensen owns three Curves fitness centers in north Everett, Lynnwood and Bothell. Both believe purchasing a franchise can be a very attractive option for someone wanting to run his or her own business, especially if you have limited previous business experience. But with any business venture, they warned, there are significant advantages and disadvantages to operating a franchise that prospective owners need to consider before making such an investment. Franchise advantages Both Jones and Christensen emphasized they purchased a franchise because most of the costly mistakes in getting the business established had already been made by the franchisor. "You don't need to reinvent the wheel," Christensen said. "With a franchise, you can own and operate a proven business that has been refined over the years in a very professional way. This doesn't guarantee your success, but it does improve your chances of surviving those first few years in operation." Christensen noted that if he had started an independent fitness center instead of a Curves franchise, he would have encountered much more risk around resolving the operational issues and getting the business recognized in the community. Jones agreed, saying, "As a franchisee, you take advantage of all the learning the franchisor has done to create this business. You are purchasing a brand name that hopefully has value in the marketplace." Jones and Christensen also highlighted using the network of other franchisee owners in the area to be a support system in running your business. "Subway has 140 owners just in the Puget Sound area. There is a tremendous amount of knowledge among this group of owners to tap into and gain support from," Jones said. "Most have seen what works and what doesn't over their years in the business." Christensen agreed. "The Curves franchisees in this area bond very well together because we are all facing similar situations, therefore we can learn from and be supportive to each other," he said. "This was especially helpful when I was new to this type of business and didn't have much previous general business experience," Christensen said. Franchise disadvantages Many franchisees often complain about the rules and royalty fees in a franchise system. If you have a strong independent and creative spirit, you may feel hamstrung by the rules to operate as a franchisee. "There can be lots of rules. I am inspected by Subway corporate on a regular basis," Jones said. "Sometimes you stop feeling like you are the owner and that you are really working for the franchisor. For some people, it is hard to work under someone else's umbrella and not have the independence to make all the changes you want to your business." After owning franchises for 11 years, Jones said he's ready for business independence. He's taking his restaurant franchise knowledge and applying it to his own concept. He has opened two Blazing Onion restaurants in Mill Creek and Snohomish. Jones and Christensen said new franchise owners may also get frustrated paying a percentage of their sales (not profits) to the franchisor as a royalty fee. Those fees are different for every franchise. "I'm alright with the royalty fee structure with Curves. It seems fair to me. But I know there are many other franchise operations that have a much higher fee structure and that can make it very difficult to make any money running your business," Christensen said. Best advice What is the best piece of advice from these two experienced and successful franchisees? Both stressed the need to do your homework and thoroughly research any potential franchise opportunity because many of the franchises in the market aren't worth the investment. "Be sure to visit several franchisees in the system you are considering. These owners will give you the straight scoop on what it is really like to run that franchise operation," Jones said. Pat Sisneros is the associate vice president of administration at Everett Community College. Lynne Munoz is the interim dean of EvCC's Business and Applied Technology division. Please send your comments to entrepreneurship@everettcc.edu. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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