My Bad Franchise Experience

As many of us are looking to start our own businesssay every town is different what works for one does
in this poor economy, I was too. I looked in magazinenot work for others. I was just going to have to see
and on the internet, read books. I found a companywhat worked through trail and error and lots of time
that specialized in matching people up with the rightand money. They did have one suggestion Cold Calls
business. They were a free service. They askedbut in Missouri there is a no call list. I would ask other
many questions including my financial information, briefowners that had been in business for 10 to 20 years.
information about my self.They brought to me threeThey would tell me the same thing the Corporate
different business that they felt met my interest.office would say. you would think someone who had
The business I had decided on was a decorative glassbeen in business for 20 years could tell you how to
franchise. The franchise had been in business for moremarket their product after all it is a franchise.
than 20 years so I felt they were stable. They suppliedAfter 2 years I was really struggling I had tried
you with the training.They contacted me and assurednewspapers ads. home shows, television commercials,
me that with their help my sales would be 2000. amagazines, supplied samples in local businesses talked
week within the first ninety days. They even hadto builder you name it I tried it. Oh yes I had some
suggested to me, a company to go thought that wouldbusiness but not enough to pay the up keep, you
write a business plan and find a bank to finance theknow rent, phone, etc.
business for a small fee. So I paid the franchise aI would call the corporate office they would say do
deposit and called the company they had suggested.you have any equity in your home maybe you could
This company was very determined and sent myget another loan, Well I did but was not going to take
business plan to many banks, many turned me down. Imoney out of my home to invest in a business that
should have taken this as a warning sign. Afterwas going under. I was smart enough to know that.
mistake #1, I securing the loan with my home and I hadAfter 4 years of struggling I closed the doors and filed
the funds needed. I paid the rest of the fees for thebankruptcy, along with many other owners. Corporate
purchase of the franchise.was being sued by other owners for fraud and many
I went to the training that they offered in California.other issues. I had no money left to sue and neither did
Learned how to make the product. How to ordermany others. Corporate lost the lawsuit and was
supplies,very basic installation skills. no training on bookfound guilty. But they are still in business out there.
keeping but did suggest computer program toSeveral of us went from perfect credit to bankrupt.
purchase, no marketing suggestions. I went homeAnd the company never even said good bye.
found a building and started my business. Their supportLong story short franchises are not all secure
team called me every week for 3 weeks, then mybusinesses. They require lots of investment and capital.
main contact person had adopted a baby and took aBusiness goes bad they have nothing to loose. They
three month leave of absents. They then assigned mehave your money from your purchase and you have
a new temporary person whom owned a franchise ininvested a lot into advertising their name.
Canada. Contact with him was hit and miss until theDo not make the same mistake. Hold onto your
first person came back three months later. Then hermoney! Learn from my experience! If I only knew then
husband had a heart attack and she was off again onwhat I know now, internet advertising was and is the
leave of absents. So to say the least their support Ithing to do!
was to have was not there. Neither were my sales.Now when I am choosing who to do business with I try
I would ask for suggestions on advertising, they wouldto stay away from franchises.