But Is It Right for You? Sizing Up Franchises for a Good Fit
Questions and Factors You May Not Have Considered That Matter
Thanks for reading “Generation Si!” Today’s newsletter gives you another look at things you should take into account, if you’re considering buying a franchise. In Part One, I introduced you to Juan Suarez, a lawyer from Honduras, and how he made his dream of becoming a business owner in the U.S. come true. Now, in Part Two, you’ll find out why his second franchise turned out to be the better fit.
In this issue, you’ll learn the following:
🌴 How he was able to minimize his up-front costs associated with buying a franchise
🌴 Why you need to pay attention to other requirements involving the purchase of supplies for the business
🌴 The “corny” thing he says made the difference in his happiness with this franchise
DON’T DISMISS “THE LITTLE THINGS”
“One of the first times that I saw my daughters playing on their bicycle out on the street, it kind of made me tear up.”
We take for granted something simple like that. But, for Juan Suarez, who was born and grew up in Honduras, it was magic.
In Honduras, it’s too dangerous.
That’s why giving up his career as a corporate lawyer to move to the U.S. made sense to him and his wife.
A look at Cookies by Design
HIGH PROFITABILITY DOES NOT ALWAYS EQUAL HAPPINESS
While he chose what he calls “a very profitable” franchise involving cleaning vacation homes, it was too time-consuming and unfulfilling.
So in November of 2015, he bought the Cookies by Design franchise.
Suarez says he paid a franchise fee of $30,000. But he says the initial start-up cost was between $120,000 and $150,000.
“It’s one of the least expensive ones.”
Suarez also adds, “There’s a franchise for every budget.”
LOOK FOR OPPORTUNITIES WHERE YOU DON’T HAVE TO BUY EVERYTHING FROM SCRATCH
The Cookies by Design Team
But get this. He didn’t have to pay the initial start-up cost because he purchased the business from someone else.
“It already was up and running. It already had the equipment.”
This saved him a lot of money.
A franchise that's already up & running can save you on start-up costs, like equipment
SPEAK TO OTHER FRANCHISEES TO GET A MORE ACCURATE VIEW OF THE BUSINESS
His first piece of advice is to speak to franchisees. He did, especially because he believes “you can’t trust the person that’s selling you the business… because they just want to sell it. So they’re gonna tell you all the nice things about the franchise.”
Suarez says franchisees will “give you a different view of what the franchise is, a more realistic view.”
LOOK FOR AREAS WHERE YOU CAN NEGOTIATE TERMS
He also learned that, in many cases, franchises are strict about things you must buy from them.
That wasn’t the case with Cookies by Design. He could buy items like butter, flour and containers outside the franchise.
“I think that’s a good thing, as well, because what might cost $20 in Texas might be more expensive in Florida or New York. So if you can get a cheaper option and still maintain the quality of the products and the presentation, as it should be, then why shouldn’t you?”
Cookies by Design in the community
CHECK TO SEE IF THE FRANCHISE HAS GOODWILL IN THE COMMUNITY
Suarez says you need to also research how long the franchise has been around. He wanted one that had been around a while and, as he says, “had a good footprint in the community.”
There’s also something else that’s critical in your decision.
SOMETHING “CORNY” CAN BE SOMETHING THAT MAKES A BIG DIFFERENCE IN YOUR DECISION
“We decided to focus on Cookies by Design because we liked the business concept. Cookies by Design is a gifting program. So we sell gifts for birthdays and get wells… and Valentine’s [Day] and Mother’s Day.”
And that appealed to him.
“Sounds kind of corny, but it’s true. It’s kind of bringing a smile to people.”
He likes that part of the job so much that, sometimes, he delivers the gifts himself.
Sometimes, you can find Juan delivering the gift baskets himself; it brings him joy
BE REALISTIC ABOUT FINANCIAL EXPECTATIONS
Suarez says you do need to be realistic about financial expectations with the franchise you choose.
With Cookies by Design, he’s candid.
“You’re not going to become a millionaire with this. It’s just the truth. But… it’s a good business. We like it. We like it a lot.”
Suarez thinks becoming an entrepreneur was a natural fit because his father, who never even graduated high school, was an entrepreneur and was very successful in many of his business ventures.
FAILURE HAPPENS; RECOGNIZE IT, ACCEPT IT AND MOVE ON
“I believe that he was successful, mainly because of his will not to fail. And, of course, there is failure, right? But he always told me… everybody fails. But you have to learn and move on. You can’t dwell on it.”
That’s why Suarez believes it’s important to have humility as an entrepreneur.
“Recognize where you made a mistake.” But, then, pick yourself up, dust yourself off and try again.
While Suarez didn’t expect this to be the path he’d take, he did always know he had to be an entrepreneur.
SOME SACRIFICES ARE JUST WORTH IT
He says you have to have something inside burning. “It was always in me that I wanted to be my own boss.”
So, now, when he thinks of the law practice he gave up, he just looks at his daughters riding their bikes and says, "That sacrifice of leaving my career for small things like that… it was a no-brainer.”
The simple pleasures in life; Juan watches his daughters ride their bikes
INSPIRATION BEHIND THIS ISSUE:
I wrote this as I got ready to pick up and go to a hotel to escape Hurricane Ian. Sometimes, you have to just get up and go.
Leaving your house because of a hurricane is very different from having to leave your home for a new country.
But there are situations in life where your plans change drastically.
You don’t know what’s going to happen on the other side.
Juan Suarez is one of many professionals who had to abandon their career and life to come to the United States.
Buying a franchise because the framework is already in place is a smart way to approach things.
It’s certainly no guarantee the franchise will be financially viable. I have heard some horror stories about investments in franchises that were financially devastating.
Becoming a business owner in any kind of business involves risk.
What I wanted to highlight about his experience, though, are the intangibles that you won’t find in the financial analysis: family time, freedom, fulfillment.
And, let’s be honest, sometimes, being a business owner will actually take away those intangibles: you’ll have less time with family, less freedom because you’re not working a 9-5 and less fulfillment from the daily pressures and responsibilities.
While Juan’s second franchise turned out to be the one that best suited his goals in life, he admits this franchise won’t make him a millionaire. And that’s okay.
Everything in life is a trade-off.
What trade-offs are you're willing to make in life?
And even though you really don’t know how things will turn out on the other side, we all have to decide, is it all worth it? #theskyisNOTthelimit 😺
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