Franchises - are they worth it?

djames

I have been looking at a couple of companies offering franchise sales and training. Is it worth the investments or in general is it a rip off?

Angelo

what type of franchises?

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djames

Angelo wrote:

what type of franchises?

.

Two that I have looked at are Lil Angels and PortraitEFX

timk519

What kind of after-you-signup support are they offering?

fredjclaus

Are they a "rip-off"? No not really, but they can be a waste. It really depends on what you want to do with your business. I was looking at the PortraitFX one and it said "Expand your business using a recognized brand". That wouldn't fly in my area because no one has ever heard of them before.

I'd be curious to know the answers to these questions;

What is the franchise fee?

What do I get for that franchise fee?

What are the royalty costs yearly?

What sort of marketing do they do for me?

How much do I have to spend for marketing materials on top of all this?

Those are just a few questions I would ask. Then once you get answers to these questions ask yourself if it's worth it?

you see in a franchise you have to follow the rules of the company or you run the risk of them pulling your franchise license and you get nothing back. They have policies on how you can advertise, where you can advertise and what you can do. If you want to add specific poses, or props in later, you can't do that without the franchiser's permission.

I'd also look at operating under your own name? You know from answering these questions how much it's going to cost for you to operate and start the business as a franchisee. How much more or less expensive would it be to do all this on your own? You can always buy your own equipment, you can buy your own props, and set up. You can deisgn your own marketing material, and you can do your own marketing. Operating as yourself, you are also free to do whatever you want with no one saying you need permission. Is the franchise really going to be that much less expensive?

I see that some of the companies allow you to use this as an add on to what you currently do. Will their brand really add that much cretibility to your name? How well known are they in your area that by using them, you would expand your business?

djames

Thanks for the responses so far.

To answer some of what I have found so far.
1. They allow you to continue with what your business has already been doing as long as their name is not included in that business.
2. They offer initial training and certification of skills. This ties in with their approved practices on what you can do.
3. They ofer ongoing training and certification in more advanced techniques and abuility.
4. They offer support and guidance by telephone to the instructors as needed.
5. They offer on site assistance and training if requested for a fee.
6. They assist is setting up the buisness side of your business along with advertising and brochures.
7. They give a franchise area with the guarantee of no competition from other franchise holders.
8. They offer web site hosting with package pricing adjustable by the photographer.
9. There are no ongoing royalty fees. Pricing for the lab is competitive with other labs.

These are a few of the areas of ongoing support being offered. The big thing for me is helping get the business side rolling with assistance and guidance.

Cygnus Studios

djames wrote:

The big thing for me is helping get the business side rolling with assistance and guidance.

This is the only thing that will be a major benefit to new business people. Everything else is going to cost you money, limit your ability, and force your business model into a specific mold.

More often than not, a business person will choose a franchise because of the name recognition. If this company is popular in your area, it may benefit you.

I would sit down and take a long hard look at the costs of opening a studio with and without their name.

Keep in mind that while a name will help you get the studio open, it will require good business skills to keep it open.

djames

Cygnus Studios wrote:

This is the only thing that will be a major benefit to new business people. Everything else is going to cost you money, limit your ability, and force your business model into a specific mold.

More often than not, a business person will choose a franchise because of the name recognition. If this company is popular in your area, it may benefit you.

I would sit down and take a long hard look at the costs of opening a studio with and without their name.

Keep in mind that while a name will help you get the studio open, it will require good business skills to keep it open.

Thank you. I have been thinking long and hard and the decision is not yet made. Given the fact that I lost almost half my life's savings in this little financial down turn all is precious.

Art Scott

djames wrote:

Thanks for the responses so far.

To answer some of what I have found so far.
1. They allow you to continue with what your business has already been doing as long as their name is not included in that business.
2. They offer initial training and certification of skills. This ties in with their approved practices on what you can do.
3. They ofer ongoing training and certification in more advanced techniques and abuility.
4. They offer support and guidance by telephone to the instructors as needed.
5. They offer on site assistance and training if requested for a fee.
6. They assist is setting up the buisness side of your business along with advertising and brochures.
7. They give a franchise area with the guarantee of no competition from other franchise holders.
8. They offer web site hosting with package pricing adjustable by the photographer.
9. There are no ongoing royalty fees. Pricing for the lab is competitive with other labs.

These are a few of the areas of ongoing support being offered. The big thing for me is helping get the business side rolling with assistance and guidance.

Why nt look to a Pro enity like PPA...they have training and certification........and they are recognized world wide and they do not insist on royalties each year (yes you say the no royaly fees in #9)....just a little over $300 for membership.....you state may have a state chapter also....

they promise you a guaranteed area of no other franchise owners.....but you still have competition from other photogs...........

I do not see anything in your list aside from the website that can not be accomplished thru PPI..........

Does the franchiser offer discounted liability and property insurance......you can get that thru PPA also........

I believe that PPA may have some lobbyists on capital hill fighting things like the Orphan Act and the such....could be wrong here, I try to not get into the politics too much.......

Will their certifications have any weight outside of their organization ???

When you see a photog that has master craftsman beside his name you know he worked his butt off to prove to the committee that he deserved and earned it......just like a Masters or Doctoral candidate has to prove his worth to his committee and especially his advisor...........

I am very leery of franchise companies normally in the little itty bitty print there are clauses telling you that it really doesn't take much for them to be able to yank your license..............

Lastly.....ask yourself this.....who do you really want to PROFIT.....Yourself or the franchise company......whose name do you really want to be known and lastly........how much advertising could that franchise fee pay for in your local papers and phone book.............................

Good Luck

ChatKat

No!
Photography is in a down market in many areas. A franchise lets you pay them to tell you what you can and cannot do. So if trends change, you might be stuck with an antquated business model.

For business help and a lot less money, you can get help. You should talk to your accountant. If you want business help, talk to your chamber of commerce or the SBA.

I have done small businss consulting for years. I spole just last month at the local SmugMug meeting in Los Angeles about being a business person. Get help and write a business plan. Get a coach to guide you through. Don't forget to set yourself apart from the herd.

djames

Thank you Art and Kathy. I really appreciate having the good guidance that I am getting from caring members of this site. You have given me a lot to explore and consider.