Franchising: More Main Street Than Wall Street

(Franchise Buy) - By SystemUser - BlogMigration. Updated Mar 12, 2013

The next time you roll your eyes at the construction of a new dry cleaners or a frozen yogurt chain, stop yourself. You might think a new 7-Eleven, Quiznos or AAMCO is just another example of corporate America replacing the little guy that is small business-- but youre wrong. Franchises are small businesses, too. Most franchisees live local, buy local and hire local; they participate in American Express Small Business Saturday, too. Though their small business is part of a larger network that makes up their franchise, franchisees face most of the same obstacles as the mom-and-pop establishment down the street. They worry about hiring the right employees, payroll taxes, attracting more customers and being successful. Theres an unfortunate disconnect between the publics perception of franchising and what franchises really are and do. On the outside, franchises seem like just another corporation: theyre big and important with lots of clout in Washington and theyre replacing your favorite small town coffee shop with Starbucks. While theres some truth in that-- Starbucks does seem to be everywhere these days-- its missing some key grains of salt. First of all, franchising is more Main Street than Wall Street. Behind the big marketing budgets (that only a handful of franchise opportunities possess) and corporate executives is an expansive network of hard-working franchisees. Many of these men and women have invested a significant chunk of their life savings in their franchise business; this isnt a second stream of revenue or just a second career. For some, franchising is a chance to start over or, for others, a last chance at success. The biggest difference between franchising and conventional small businesses is the level of support extended to both entities. Franchising comes with a promise of support; franchises dont want their brand names tarnished. Then again, franchisees arent coddled. Theyre expected to meet the expectations of their parent franchise, which includes royalties and other fees in some cases. Hand holding is not part of the franchising agreement and neither is a guarantee of success. The IFA would do well to raise awareness about the similarities between traditional small businesses and franchises. Wall Street and corporate America has been repeatedly vilified in the media, though franchise and IFA public relations teams are definitely populating the newswires with positive stories. However, consumers made more aware of franchisings Main Street attributes would be a smart move. Its significantly easier to relate to a person in your community than a brand without a face.