One of the frequently touted benefits of buying a franchise is that the formula for doing business is proven, and the franchisee just has to "follow the recipe." This is a very seductive promise: as a new franchisee many years ago, I appreciated the 30 years of development that the franchisor had made into refining the system. I didn't have to line up vendors, negotiate pricing, choose equipment to buy, or even think about the items on the menu. I bought into the dream of "being in business for myself, but not by myself."

The reality has been far less rosy. For one thing, I discovered that the many prospective customers around me in my urban store wanted items that I couldn't provide. They wanted organic food items, artisan cheeses, fresh desserts, etc, and they were willing to pay top dollar for these items. I watched helplessly while the independent stores around me were getting double my average ticket price, and doing 3 times my volume in less than half the open hours. I was restricted from changing the pricing, changing the items, or changing the hours to accommodate the needs of my particular market. Ouch!

The lesson? Be sure that the product your franchise is offering is extremely well-matched to your local marketplace. If it isn't, you would far better off to acquire an independent business in your market.