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Free Store Vs Franchise.....What do you think?

by chewmike
14 replies
Hello warrior members. I would like to know your opinion. Recently i have a dilemma of the concept of Free Store versus franchise.

Let's compare FREE stores to a Franchise:-

Buying a Franchise

High initial investment
Ongoing franchise fees
Building lease or purchase cost
Limited products or services
Buying yourself a job
Single source of profit

Running a FREE Store

No investment required
No fees charged
Company pays the lease
Unlimited product range
Create time & financial freedom
Multiple streams of profit

What do you think?
#business opportunities #franchise #franchisor #free store #networking
  • Profile picture of the author lewistrio2
    I've been a franchise coach for 20 years and there one important item you left off of your comparison chart. Probability of success. Franchise=95% Non-franchise=50%.

    Clearly the strength of the business plan in a franchise is far superior to that of a non-franchise. The franchise company knows what problems you are likely to encounter and what solutions work.

    Feel free to PM me if you have any specific questions.
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    When your ready to convert those IM profits to a REAL business, we can help you find the perfect franchise. And best of all our service is free (the franchise companies pay our fees) Visit our database of the 300 Best Franchises in the US .

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    • Profile picture of the author chewmike
      Originally Posted by lewistrio2 View Post

      I've been a franchise coach for 20 years and there one important item you left off of your comparison chart. Probability of success. Franchise=95% Non-franchise=50%.

      Clearly the strength of the business plan in a franchise is far superior to that of a non-franchise. The franchise company knows what problems you are likely to encounter and what solutions work.

      Feel free to PM me if you have any specific questions.
      Yes, i do agree with you that the probability of success is the main key factor between a franchise and non-franchise. I did came across a personal experience where the management of the franchise company is not trustworthy. Before signing the agreement, the person did not look in the details as he is promised of certain benefits verbally. After signing the agreement, the management seemed to deny what has been agreed verbally.
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      • Profile picture of the author jenifer smith
        franchise business might cause you more on your initial capital but both at long and short run it is more profitable than free store, though it has its own challenges just like every other business. to limit such challenges ensure that you make proper investigation to get proper information about the company before doing business with them
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        • Profile picture of the author jenifer smith
          companies with reputable names is better than any free store.
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          • Profile picture of the author Sondor
            Originally Posted by jenifer smith View Post

            companies with reputable names is better than any free store.
            I would politely disagree with you and give the example of a restaurant franchise. The initial AND ongoing fees can eat you alive...

            In an industry w/ 10%-20% margins, having to pay as much as 8% in ongoing franchise fees can totally cripple an otherwise successful business.

            Owner operated independent restaurants aren't handicapped in such a way.
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            • Profile picture of the author chewmike
              Originally Posted by Sondor View Post

              I would politely disagree with you and give the example of a restaurant franchise. The initial AND ongoing fees can eat you alive...

              In an industry w/ 10%-20% margins, having to pay as much as 8% in ongoing franchise fees can totally cripple an otherwise successful business.

              Owner operated independent restaurants aren't handicapped in such a way.
              I totally agree with you that the initial and ongoing fees are really a high investment. On the other hand, for the Free Store, there is no fees charged and no investment required. The company of the Free Store leases space in a high foot traffic location, does the necessary renovation, sets up the store, puts in the equipment and all of the products, and then if you are selected, they let you run it and profit from it absolutely FREE!
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        • Profile picture of the author chewmike
          Originally Posted by jenifer smith View Post

          franchise business might cause you more on your initial capital but both at long and short run it is more profitable than free store, though it has its own challenges just like every other business. to limit such challenges ensure that you make proper investigation to get proper information about the company before doing business with them
          I would politely point out that franchise business does have risk despite the proper investigation and getting proper information about the company before doing business with them. About the Free Store, it's so much smarter and safer than buying a franchise because while leveraging on a successful system is the same in either model, a Free Store is risk free and allows one to enjoy multiple streams of income.
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  • Profile picture of the author jeofjingjeff
    Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation.
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    • Profile picture of the author chewmike
      Originally Posted by jeofjingjeff View Post

      Financing the business may be easier. Banks are sometimes more likely to lend money to buy a franchise with a good reputation.
      I totally agree with you as the bank seems to be giving finance support easily to the person who is buying a franchise company that has good reputation. Again, one really needs to be careful before signing the agreement to buy a franchise as what has been agreed verbally and later to avoid issues that arise later. The franchise company may deny what has been agreed verbally by stating that those agreed verbally are not in the agreement.
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  • Profile picture of the author sahaya
    Banned
    [DELETED]
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    • Profile picture of the author chewmike
      Originally Posted by sahaya View Post

      i dont have any experience in this. so i would like to know few more in detail
      You are welcome to private message me on details that you want to know about franchise.
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  • Profile picture of the author Abelia663
    Mine think Franchise is good source of business to increase profit .
    Starting a grocery store business may pose as a challenge if you are not equipped with the proper information.
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    • Profile picture of the author chewmike
      Originally Posted by Abelia663 View Post

      Mine think Franchise is good source of business to increase profit .
      Starting a grocery store business may pose as a challenge if you are not equipped with the proper information.
      It is true that franchise is a good source of business to increase profit.
      Most important is that the proper information from the franchise company is correctly and honestly delivered. In addition the training, product knowledge, business strategy and support are assured by the franchise company
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  • Profile picture of the author Sondor
    My quick 2-cents is that a franchise is the only way to go unless you have many years of experience as a successful manager in whatever industry you are contemplating opening a 'free store' in.
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    • Profile picture of the author chewmike
      Originally Posted by Sondor View Post

      My quick 2-cents is that a franchise is the only way to go unless you have many years of experience as a successful manager in whatever industry you are contemplating opening a 'free store' in.
      You have a good point here. Based on one's experience it is indeed much helpful to the franchiser.
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