How My Franchise Consulting/Brokering Business Has Changed (Part 1)

      ( Me, in 2001 )

The small business world has evolved, and I've had to evolve with it. When I started out in 2001 (After becoming a victim of downsizing after being fired) my only role was matching prospective franchise owners with the right franchise business opportunities for them. 

My late father, Jerry Libava, pressed me to join him in his franchise consulting firm. (International Franchise Development) After I deliberated for a couple of months, I came aboard. I had to put some of my own money in, and I learned a lot from him.

At the time, he was a member of one of the first nationwide franchise brokerages. Franchise matchmaking was a new business model when he started his firm in 1990. He was one of the early pioneers, and may have been the first person to do it in the Cleveland, Ohio area.

He felt at the time, that being part of a "group," would offer him a few added benefits.

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When I joined him, I became a member of the same group. The group had about 70 or so offices around the country. We had to pay for training, marketing, (a monthly fee) and we also paid a % of our finder's fees to the president of the group. (Franchise companies pay folks like us a "finder's fee" for the successful placement of a franchise candidate that we introduced them to)

Man, that sure sounds like a franchise, doesn't it? According to my Dad, it was.

(It was never formally called a franchise, but right before I left, they converted to one. If they didn't, they would have been in big trouble.)

Well like any franchise company, there were some problems, and some infighting. I could go on and on about them, but suffice to say, I was not happy about the way they were doing a lot of things, especially their marketing. (And I had no problem vocalizing my concerns!)

A couple of the franchisees ended up purchasing this franchise brokerage franchise in what I felt was an underhanded way, from the original owner, and that's when I chose to go out on my own.  

That turned out to be the best business decision I've ever made. (Yet)

Next, I describe the different things I do now, that I never thought I would do, when I started in 2001...

Part 2

Comments

[Rikvin Singapore]

I agree with Joel. It really depends on the person and the situation. Most of those who franchise now a days are those who fail/never thought to have the idea of their own business. Well, franchise nowadays are the easiest way to earn money, but it is very limited.

[BizCorp Incorporation]

Agree with John. As someone in the incorporation business, we notice that more and more 9-5 employees are striking out on their own owing to job stress, dissatisfaction with their pay and growth prospects, as well as, competition from immigrants.

[John]

Of course, nothing beats being your own 'Boss' and the satisfaction of fulfilling one's dream is always the best. We share the same sentiments and encourage people to stand up and set up their own business and be counted.

[The Franchise King]

Starting your own business may not be "better" than starting a franchise. It depends on the person, and the situation.

Either one could be a fine choice.

The Franchise King
Joel Libava

[GuideMeSingapore]

So would you say starting your own business is better than owning a franchise business or the other way round? Doing some research right now and really wonder what people with experience in franchising thing of the business.