Franpro commented on the following stories on BizSugar
Top Traits of Successful Franchisees
"Hi Heather, Great question! Franchisees are a different breed, for sure. yes, they're driven, like a pure entrepreneur, but they aren't focused on controlling everything. They are okay with following someone else's system, as long as it can help them get where they can go. True entrepreneurs usually like to come up with their own system-or get some help doing it. Does that help? JL"Subscribe
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Franchisors Should Really Not Become Bankers
"Hi Shawn, Great questions. Franchisors develop concepts and grow their business by using OPM. (Other people's money) Those "people" need to prove that they're worthy. They need to come to the table with money. If franchisors start becoming bankers, I fear that way too many people will get awarded franchises that maybe shouldn't have. Especially ones who are borderline risks; not enough money stashed for working capital and living expenses. Maybe some of the less credit-worthy folks.. Etc. Etc. Now, let's fast forward 9 months...maybe a year. The franchisees that were awarded franchises that maybe shouldn't have been awarded them in the first place, and have gotten their financing directly from the franchisor, are now just about out of money. Maybe their franchise didn't ramp up as fast as they projected it would. Do they go to the franchisor for a ...credit line? Now, let's go 3 years out. The franchisee almost broke even-except for the fact they he or she owes so much damn money to the franchisor. And, the franchisor now OWNS THIS PERSON. You take it from there, Shawn. JL "