When buying a franchise, exactly what are you paying for?
You are paying for:
- The franchise brand
- The franchise operating system
- The required royalty payment by the franchisee for as long as you own the franchise business.
Some people feel they are oversold when receiving information from tanning franchisers. The idea of a proven track record, a turn-key system, and ongoing support does not assure success. There is the "opportunity" for success, but there is also the risk of failure.
Franchisers rarely talk about, or provide information about their failures nor do they speak much of the tanning franchises who never turn a profit or profit very little and sell out. We have spoken to many tanning franchisees who offer examples of being oversold, of being over-promised, and who are unhappy with the depth of support actually received. When analyzing information as it applies to tanning franchisees as a whole, there are many more disadvantages than there are advantages that should be considered.
Tanning franchisers offer compelling reasons to buy now.
The reduction of your personal risk.
One of the most compelling reasons for buying a tanning franchise is the reduction of risk. The tanning franchiser suggests they have a proven track record supported with success stories of others 'just like you' that have been successful in this business. There is no doubt more to the story that they are telling you. Regardless of their proven track record, all successful businesses require a lot of dedication and plain, hard work. The tanning franchiser offers a plan to follow but it is ultimately up to you to succeed.
Success is not guaranteed. There are many successful ways of operating a tanning salon and you don't have to buy into a franchise to learn them. Expert help is available from InSun and we'll show you where to get it for a great deal less than $361,150!
Their method of doing business is the best.
The tanning franchisers business system governs virtually all aspects of operating a business therefore you give up much of the control and the flexibility in day-to-day operations. As a result, tanning franchise owners are not truly independent business owners.
Safety in numbers, or is there?
Where there is one franchise, there will be many. Every franchiser's mission is to populate business communities with their model and brand thereby increasing their revenues, their brand, and their business net worth.
Oftentimes the "protected territory" proves too small and creates undue competition. And since they are all the same, it is difficult if not nearly impossible for one franchisee to distinguish itself from another within the same brand. Some franchise territories are based on population. As an area becomes more populated, you could find other territories opening up nearby.
Be aware, the tanning franchiser is in the business of selling as many franchises as possible and could soon populate your area with other such businesses.