There are many reasons why budding entrepreneurs turn to franchising to start their own business. However, increasingly prospective franchisees are turning to the franchise business model as a way to work with their loved ones.
While choosing to go into business with family members is not for everyone, it can be a great way to become the boss with the assurance that you’re in it with someone you completely trust.
5 why the best franchises make the perfect family business
You're less likely to argue.
OK, so this one isn't guaranteed, but with the franchise business model, many of the tough decisions that business owners face have already been made for you. You don’t have to argue for hours over the business name, concept or logo. The franchisor has developed a system which needs to be followed leaving no room for disputes.
Read more: Buy a Business with Franchising
You'll all be clear on your roles and responsibilities.
The franchise contract between you and the franchisor will be very detailed and specific. The financial and legal aspects of the franchise ownership will be set out in the franchise agreement. This leaves no room for ambiguity, and you'll all be clear and confident about your stake in the business.
Again, the franchise system that you’ll be expected to follow will allow you to sit down with your family members and assign roles. Because you know each other so well, you’ll be able to be honest with each other about your strengths and then take responsibility for the roles you’re best suited to. Not only will this help clarify the situation for any employees that you may have but also enables you to work alongside your loved ones without stepping on their toes.
You can potentially invest more into the business.
One of the great things about buying a franchise is that you’ll know what the investment costs are before you sign the franchise contract. This is a massive advantage over someone choosing to start an independent business as many of the costs that they’ll face will be unknown at the start of their business venture.
The best franchises will provide you with a rundown of the investment that’s required, not just to set up the business, but on an ongoing basis too. This means that you can discuss funding options with your family based on actual, rather than estimated costs. You may even be able to pool your resources together so that you don’t need to lend any money to start your own business.
You can take control of your work/life balance.
There’s no getting away from the fact that running a business can be hard work. Very often you’ll find yourself working long hours, late nights and weekends to make your new venture a success. This can put pressure on relationships with your loved ones as it’s not just you, but other family members, that are feeling the strain.
However, the franchise business model can alleviate some of this stress. As the franchise system is well-established and clear, you can work with your family to plan schedules, so that family life doesn't suffer too much. Running your franchise will still take dedication and determination, but the clearly-defined model of franchising allows you to support your business, your family, as well as other personal commitments.
You're preparing the next generation of entrepreneurs.
Before you even sign the franchise contract, you should give some thought to how your franchising journey will end. It may seem strange but having an exit strategy as early as possible will ensure that things run smoothly when your time comes to leave the franchise.
It may be your plan to hand the franchise over to your children who have been helping you to run the business throughout your franchise term. However, even if the next generation decides not to continue with the franchise, the experience of working in a family business environment may instil them with the passion and confidence to become the entrepreneurs of the future.
How to run a successful family franchise
As well as the advantages of running a franchise with family members, there are pitfalls you should avoid too. Here are some tips to help you succeed:
- Communicate openly and honestly
As you know your family so well, it can be easy to make decisions or comments in haste before thinking them through. It should be remembered though that your actions will impact your business as well as your family dynamic too. When you enter into a franchise relationship, you should create a rational decision-making process which you should all agree to follow at all times.
- Develop a culture of trust
The fact that you trust your family so much will give you a competitive advantage. Being able to have total confidence in your partner completely makes delegation much easier. Such a positive culture of loyalty and trust will be apparent to employees as well which will make you one of the best franchises to work for.
- Celebrate your successes
Working alongside your family day in and day out is bound to result in tension and stress at times. Disagreements, being short-tempered, and falling out are almost inevitable side effects of your combined passion and dedication to the business.
This is why it’s so important to take time out often to stop and assess how much you’ve achieved. Set realistic goals and then celebrate when you reach them. The best thing about running a franchise with your family is that you get to experience the happy times with your loved ones. This is a huge advantage of working with family and one that shouldn’t be taken for granted.
The Editorial Team, Point Franchise ©