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Become a

Millionaire by Franchising
Article by Dr. Salim Hajje Ph.D., Strategy Consultant, Franchising is more than just an engine that has driven entrepreneurism this century its the vehicle that has given many of us the chance to reach that Great Dream of independence, security and for some great wealth. And, while the opportunity exists, and thousands of franchisees, franchisors and suppliers to the industry have reached that magical seven figure net worth most wont. But a formidable number of millionaires today trace their emergence into financial freedom to franchising because they either had a great idea upon which to build a franchise system or were fortunate enough to discover and join the right franchise system. However, being a franchisee alone will not get you there.

Franchisees often refer to themselves as entrepreneurs but for most of them, entrepreneur is spelled with a small e. Whats missing is the passion for more the ability to take the structure of the franchisors system and having a vision, take risks and reap the greater rewards than the simple licensing of a business concept can give them. Great franchisees are good at reading maps and following directions. They are implementers of systems designed by others. True Entrepreneurs on the other hand are good at charting maps and defining their destiny. They can take the basics available to everyone in the system and achieve more. Thats the big difference. Its the common thread of the Entrepreneurs profiled in the sidebar to this article and is the historic ingredient for most successful people whether they are in or out of franchising. Often when working with an emerging franchisor in our consulting practice, or with an established franchise system that seemingly has stalled, clients will have a moment of doubt about the future. Its a natural reaction to fear of the unknown. Seemingly as either justification or support for their fears they lament for the opportunities that the past had provided. A period of time when concepts were fresh, the consumer was more forgiving and market saturation was not a concern. In many ways the past was easier. For franchisors there was an abundance of new franchisees looking for opportunities and fewer opportunities for them to choose from. For franchisees, 1

markets were wide open and local competition was fragmented among non-branded local competitors who could not long survive against the strength of a growing franchise system. In hindsight though those were the hard times. Capital markets, banks and other lenders, leasing companies, landlords, the press and much of the public all looked on franchising the same way they looked at multi-level marketing or other get rich schemes. Getting funds to expand came mostly from second mortgages on homes, loans from family and friends or savings.

Today much of those barriers are behind us. Franchising has emerged and without the constraints of the past the opportunity to become a millionaire is not only possible, for those who are Entrepreneurs with a capital E is quite probable.

Multi-unit ownership is not only common today for most franchise systems it is the preferred method of expansion. The ability to leverage a franchisees talents over multiple locations allowed the franchisor to reduce their costs in supporting the system and allowed them to invest in system Franchise laws and legislation was improvement while opening up either non-existent or brand new. additional markets both at home Because of that protection for and overseas. And consumers prospective franchisees, which appreciate the came from consistency that disclosure, was Competition was comes from a missing. The fragmented among franchised emergence of non-branded local system. modern franchising as a competitors who could reputable way to Franchisees, with not long survive against conduct capital and the strength of a growing distribution and its funding available franchise system. period of greatest in abundance are growth came not only following the enactment of developing new locations, they disclosure. are acquiring existing locations from their franchisors or from franchising who are retiring or Multi-unit ownership by exiting the system. Some are franchisees was for many systems even purchasing their franchisors unthinkable. To be successful as a system and becoming franchisors franchisor many of the specialists themselves. Many of the modern said that each unit must be owned day franchisee millionaires and operated by a franchisee. measure their wealth in the Opportunities for growth within cumulative net worth or market many brands were extremely value of their operations. Many limited. are the former franchisees who sold their existing operations and Consumers viewed products from have reinvested in new franchised locations as secondary opportunities. at best. 2

How to become a millionaire in franchising?

1. If youve done your homework and bought a franchise from a solid franchise system follow the rules and procedures set by your franchisor. Focus on building your business without reinventing the wheel. 2. If you are not already, become impatient with the present. Complacency with where you are and what you have is an anchor. Develop a vision and move towards it. 3. Constantly upgrade and improve what you own so that its value grows. Youll probably need what you have to get where you are going. Make sure its strong. 4. Rely more on your intuition. If your current success came from your talents and not simply luck listen to that inner voice. If your track record in predicting the future has been sound, if your visions have been based on knowledge and not simply gut feel dont be distracted from the goal by others with a lesser talent. 5. Strategic plans have their place, but if you wait to dot each I and cross each T youll probably miss your chance. Focus on Tactical Planning. TP enables you to implement in real time while the opportunities still exist.

6. Understand your skills and talents. Are you better at inventing things or innovating on the ideas of others? Dont mistake one for the other. Whatever your weakness find

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Dr. Salim Hajje


someone who gives you the balance you need. Often it will be your franchisor. 3

7. Let others share in your success. No one can do it alone and if you share your success with others you will energize their talents to achieve your vision. 8. Learn from others. Get involved with people who had achieved greatness and learn from them. Use outside professionals intelligently and often. But dont let their constraints become yours. 9. Get a buy in from your family and friends and colleagues. You will need a network of support as you move forward. 10. Finally, stay focused. Be willing to invest your time and effort on the goal. Its going to take some risks and guts to move out of your comfort zone. But if you want more its out there well within your reach. Being a franchisee today if you are a good operator in a good system is a perfect place to look for your fortune. The time to accumulate wealth has never been better.