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Is there any benefit in being the first franchisee in a franchisor network?
There may be, but one man’s benefit is another man’s disadvantage, and it will depend very much on your attitude to risk. Good franchisees are by definition typically risk-averse and compliant by nature. Franchisors find it much easier to recruit the right people once they have a successful network up and running. That of course presents opportunities for individuals willing to be the early franchisees, because at that stage the franchisor needs you more than you need him. With the right advice you may be able to negotiate a really attractive deal, and you will also be in a position to influence how the franchise develops. What you need to be sure of as the first franchisee is that the business model actually works and that the franchising project is adequately funded, so carefully check out the franchisor’s owned units and his business plan. If he doesn’t have them, and is therefore trying to franchise an idea, then steer well clear. Even if he has company-owned units, what he has yet to prove is that he can adapt to doing business as a franchisor, and that is where you have to be prepared to be the guinea pig.
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