"I don't want to be told what to do and when to do it. If I have my own business, I want to be the boss."

Misconceptions, misconceptions, misconceptions; so many people think that all franchise companies fit the same mold, and all opportunities in franchising have the same structure.

John Doe, now out of work, was looking for alternative employment and was presented with the option of self-employment in addition to looking at re-employment. His first misconception--"I don't want to spend the rest of my life flipping greasy hamburgers"—was overcome with the convincing argument that the owners of most businesses are required to manage and market the business; owners are not necessarily doing the actual manual work.

The next objection—not being his own boss—was overcome as a direct outcome of the idea that the owner was not necessarily involved in the direct operation. There are many varied opportunities within the franchise industry to fulfill the personal needs of most people. The options provide variety—which, as we all know, is the spice of life.

There are many misconceptions about the range of franchise opportunities.

Among those options are the investment-only opportunity, the part-time opportunity, the hands-on with a single unit opportunity, the multiple units opportunity, the single brand item opportunity, the dual brand item opportunity, the multiple brand item opportunity, the regional opportunity and the master license opportunity.

The range of various opportunities listed above is expanded even further when considered in the context of other variables that can affect how a franchise is run. These include home-based businesses, retail outlets, an office environment, locations in industrial areas and distribution networks.

Likewise, adding more spice to this mix of franchise variety is the fact that opportunities exist in both the service and product arenas in businesses such as automotive, fast-food, employment agencies, home improvement, business services, medical, etc., etc.

We see with the large number of variations of options that it is not necessary to think of franchising as a singular, structured system.

There are some franchisors that provide a management program for absentee owners who wish to utilize franchising as a form of investment. These franchisors will normally charge a management fee for such a service. The objective of such an investment would be equity appreciation, the possibility of a greater return on investment than would be available through other investment means, and greater and more personal control of the investment.

Absentee ownership will generally produce a lower return than what is normally available if an owner were operating his own business. That is due to the lower motivation of employees, regardless of how many incentives are given to motivate the employee; ownership is the greatest motivation.

HIRE A MANAGER

An entrepreneur may invest in a franchise with a franchisor that does not have such management programs by hiring his own manager. However, many franchisors will not permit such a practice. Many franchisors insist upon owner-operated businesses. There are still other franchisors that will permit absentee owners, provided the franchisor maintains the right to train and/or supervise the manager.

This group of absentee-owned franchises is a very favored option for the executive who does not want to give up his job in the corporate world but would like a little insurance of something behind him in case he loses his job.

Home-based franchises are the most likely to accommodate part-timers.

There are a number of franchises that can be operated on a part-time basis, providing an alternative for the enterprising, hard-working individual who may wish to keep his job while developing his own business. This part-time opportunity also fits the needs of many retirees, who may wish for a little extra income to supplement their retirement. This arrangement can also provide them with the flexibility to work hours that are convenient and still allow them plenty of time to enjoy their retirement.

Not all franchises are suitable for such part-time operations, and many franchisors will refuse to sell to anyone not wishing to put in full time on the job. However, many home-based businesses can be operated on a part-time basis, as well as some other categories, such as retail, which can be managed by an employee during the day while the owner manages the business in the evening.

Certainly, the largest percentage of franchisees fall into the category of hands-on operations with a single unit. The amount of control the franchisee has in his own business is wholly dependent upon the type of franchise company he chooses. There are some franchisors that exercise extreme control, allowing for very little freedom for independent thought within the operation. They have a successful formula, and they want their franchisees to follow that formula without any deviation.

There are other franchise companies that believe ideas and concepts of the individual entrepreneur only enhance their own expertise and ability to provide for a highly successful operations. These latter companies provide many channels for free expression, provided the franchisee follows the basic formula.

A hands-on single unit could mean that the franchisee is a one-person business, where the franchisee operates, manages and markets the franchise. One-man operations are most prevalent in home-based businesses. That is not to say such businesses cannot also benefit from hiring employees, which allows the franchisee to increase the amount of work and/or sales the business can produce. Single-unit operators can remain as such and be successful, or they may grow and develop into multiple-unit operators.

STARTING LARGER

Many single-unit operators grow into multiple-unit operators. However, many highly ambitious entrepreneurs successfully negotiate a multiple-store program at the initiation of their dealings with the franchisor. Some franchisors have multiple-store programs written into their contracts that offer significant discounts for franchisees who want to make an early commitment.

Multiple stores do not always have to be in the same franchise company. We are seeing a trend today where two complementary franchises are opened within the same location by the same franchisee. This trend is called dual branding. Where three or more franchises are combined together, it is multiple branding.

There are many varied opportunities for regional franchises. Many franchisors find the regional concept the most aggressive method for fast expansion. The regional franchise opportunity is most suited for the highly ambitious entrepreneur.

For a regional operation to be successful, unit franchises must be opened as prototypes to show the operation to potential buyers. If no units are sold, then the regional franchisee might be required to open up one or more prototypes himself. Once a regional presence is established, additional units are sold to other interested parties using the prototype as a model, or the regional franchisee can open additional units on his own.

The master license opportunity is far rarer in today's market. This system is very much the same as a regional franchise, except the master licensee develops his own collateral and agreements and exhibits a much higher degree of independence from the franchisor. The down side in assuming far more independence is that it assumes far more liability, as the master licensee is independent of the franchisor. This concept is most widely used in the international market.

Geoffrey Stebbins, president of World Franchise Consultants