Franchise players in focus

Nearly 17 percent of all jobs in Nebraska and 16 percent in Iowa are tied to franchise businesses, according to the International Franchise Association. That point was a key reason the Greater Omaha Chamber of Commerce on Thursday hosted its first Midwest Franchise Seminar.

The event, also the first community gathering held at the Marcus Midtown Cinema at 32nd and Farnam Streets, was an opportunity for businessmen and women to hear directly from franchisees and to learn more about the successes and horror stories of investing in franchises rather than starting their own small businesses in a down economy.

“We're not trying to sell people on franchises,” said Winsley Durand, the chamber's director of retail attraction. “It's all about providing people the right information so that they can make a decision that's right for them.”

In 2006, after spending much of his adult life working in corporate America as an accountant for companies including TD Ameritrade and Union Pacific, Shawn Williams decided it was time to start “controlling his own destiny.”

He ditched the corporate lifestyle and bought into Bounce U, an Arizona-based franchise that hosts parties for young children.

“I wanted to sink or swim on my own merits,” Williams said. “It's been a great decision for me. I'm happy to go to work every day instead of just going through the motions.”

But opening a franchise like a Subway restaurant, a Hilton Hotel or a Petland shop isn't for everyone. While there is less risk in starting a franchise than an independent small business, deciding to start a franchise is a long-term investment that requires thorough analysis, said Donald Culp, a franchise legal expert from Kansas City who appeared at the seminar.

“It should not be an emotional decision,” Culp said.

Nationally, 97 percent of franchised businesses are successful five years after opening, while 48 percent of non-franchised businesses survive for the same period, according to the U.S. Chamber of Commerce.

An investor who buys into a franchise is purchasing not only a business but also a process, product or service, brand identity and a marketing support system.

Franchises are highly regulated by state government and the Federal Trade Commission, and often franchise owners don't have all the flexibility they would have if they owned independent businesses, said Joe Cooney, another seminar speaker.

“The concept of getting into a franchise is buying into a tried-and-true program,” Cooney said. “A franchise is going to control you somewhat.”

The seminar, which featured informational sessions, networking opportunities and other resources, drew individuals from as far as Cedar Rapids, Iowa. But the key goal was to stimulate job creation and investment in Omaha by helping potential franchise owners take the leap of faith, Durand said.

Contact the writer:

444-1414, ross.boettcher@owh.com