Starting Up: If You Want to Own a Franchise, Here's What You Should Know

Franchising tends to increase during a recession as many aspiring entrepreneurs, driven by layoffs or job changes, finally decide to make their leap.

Many aspiring franchisees assume that their biggest challenge will be executing within the franchise system, but they quickly find that while running the system is important, the ultimate challenge is translating national strategy to address variables in a local market.

Here are a few of the local challenges franchisees face:

Location. Understanding such things as geography, community planning initiatives, and real estate trends are critical to success.

Competition. This varies greatly by region and consists of other franchises, national retailers, mom-and-pop shops, larger well-established local brands, or alternatives to your product or service.

Employees. Dwight Mogford, owner of the Mr. Handyman franchise in Boise, explains: "The face and reputation of Mr. Handyman is largely determined by the people we hire. Though the franchiser can offer guidance, it is up to the franchisee to choose the right people to execute their vision."

Marketing. Tactics for reaching an audience can vary greatly by region, often down to the neighborhood level. Understanding the creative elements that work best in combination with the shifting world of advertising media and public relations - such as the Internet, newspapers and social media like Twitter and Facebook - are daunting challenges.

These are greatly disparate challenges. How can you best address all of them?

The key is to look for franchisers that not only have a strong brand and proven system, but also provide solutions that help the franchisee solve local problems. Aspiring franchisees should research diligently whether the franchiser offers the following:

Information. Franchisers can help share data, best practices and lessons learned via technology and by connecting franchisees through networking, events and training.

Expertise. Many franchisers make experts readily available to franchisees, often for free or at subsidized rates. For example, some franchisers provide dedicated marketing professionals in each market.

Execution. Franchisers can help eliminate time-consuming tasks to enable franchisees to best focus on managing their businesses. Examples include marketing fulfillment services or technologies.

But the most important observation I've made in working with franchisees is that a franchise's success is most highly correlated to the people who run it, and not necessarily to the national brand or system.

The common traits shared by successful franchisees include demonstrated skill at solving a wide variety of challenges and an incredible passion for building a local brand. At the same time, successful franchisees are willing to rely upon the franchise for support. If you think you are this type of person, franchising may be for you. Just remember to look for franchisers who set themselves apart with the tools and services they provide.