Should I Open a Print Franchise or Go Solo?

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hen Kyle M. Perkins opened his Big Frog Custom T-Shirts & More of Raleigh franchise location in 2018, he and his partners were searching for a pre-existing business model. “We weren’t committed to any specific industry, but we wanted to step into something with proven systems in place,” he says. “Starting a business from scratch meant we’d have to invent, test, and build everything ourselves, which can be overwhelming and risky.”

A franchise consultant matched Perkins and his partners with a custom t-shirt printing business based on their personalities, particularly the mix of creativity and tech involved. At first, Perkins was skeptical; however, visiting the Big Frog franchise headquarters and talking to existing franchise owners gave Perkins a different perspective.

“This franchise offered significant freedom and flexibility, allowing us to be genuine ‘business owners’ rather than just investors hoping the system worked,” says Perkins, who liked Big Frog’s emphasis on community engagement and providing tailored solutions instead of just operating through a national call center or distribution center. “Plus, seeing the ability to offer 16 million colors printed on demand for customers really opened our eyes to the potential of this business.”

Perkins doesn’t think he would have been as successful if he had to start from scratch as an independent print shop owner. “I’ve seen many small businesses struggle to get basic operations running smoothly,” he says, “and without the purchasing power or support of a national franchise, it’s tough to survive in this industry as a newbie.”

More than 8 million Americans are employed thanks to franchises. If you’re wondering whether a franchise in the print industry makes sense for you, we answer all your questions on how to weigh your options so you choose the most successful route.

What are the benefits of joining a franchise?

“The franchise industry is unusual in that everyone is on a level playing field,” says Lisa Linkowsky, franchise advisor at Milestone Franchising. “You don’t need a college degree. It’s open to everyone, including women, people of color, veterans, and more. If you have what it takes to be a business owner, you’re welcome here."

Here are a few reasons why you might choose to own a franchise vs. opening a print shop:

1. Tap into an established brand and reputation:

Owning a franchise allows you to leverage an established brand name, which can attract customers more efficiently than starting a new, unknown business from scratch. “The branding is fully established and trademarked, with a marketing strategy in place that includes a website, active social media platforms, and engaging content,” Linkowsky says.

2. Get a proven business model:

Franchises come with a tried-and-true business model that’s been refined over time. This reduces the risk of failure in starting a new print shop where you need to figure out your own business operations, marketing strategies, and customer acquisition methods.

3. Get training and support:

Franchise owners often receive comprehensive training and ongoing support from the franchisor, including guidance on operations, marketing, and sales. This support system can be invaluable, especially for those new to the print industry or business ownership. “Clear procedures are in place to guide you in running the business, along with training that equips you with the confidence to launch successfully and achieve your growth goals,” Linkowsky says.

4. Tap into marketing and supply chain advantages:

Many franchises offer centralized marketing campaigns, bulk purchasing power, and established supply chains, which can reduce costs and increase profitability. These advantages provide a competitive edge over independent print shops that have to build these resources from scratch.

“Because of supplier relationships, as a franchisor, we offer owners better buying power with huge discounts on printers and apparel, as well as free 24-hour shipping, allowing them to be their local go-to for custom apparel and more. Another benefit is that while our owners offer their customers all of the various decorating techniques, about 30% of their business is outsourced, so the owner doesn’t have to invest in expensive screenprinting or embroidery equipment or the space for it.”
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Kimberly Youngbeck, director of franchise development at Big Frog

5. Get an instant network of other owners: Perkins appreciates the support from other franchise owners. “Whether it’s advice on handling a tricky request, finding out-of-stock items, or just sharing tips, the network is a valuable resource,” he says. “The relationships I’ve built with other owners have helped us be better prepared for whatever comes next.”

What type of business owner is the right candidate to be a franchise owner?

You might be an ideal franchise owner if:

You’re willing to follow a proven system.

A successful franchise owner values established processes and adheres to guidelines. They thrive in a structured environment and recognize the importance of following a proven business model. “Veterans tend to be wonderful franchise candidates since they’re accustomed to following systems and procedures,” Linkowksy says.

You’ve got strong communication and leadership skills.

Franchise owners need to manage teams, interact with customers, and work closely with the franchisor. Being a strong communicator and effective leader is key for maintaining brand standards and ensuring smooth operations. “People with networking, relationship-building, and solid leadership skills generally make excellent franchise owners,” Youngbeck says. “Big Frog would be a challenging model for someone who doesn’t have strong interpersonal skills.”

You have financial stability.

A good franchise owner should have the financial resources to invest in the franchise and manage cash flow effectively. You should be comfortable with calculated risks but prefer the reduced risk of a franchise model over starting a completely new venture.

You’re motivated for long-term growth.

Franchise owners are often in it for the long haul. You should be motivated by long-term growth and be willing to put in the effort to build and maintain a successful business over time.

You might not be an ideal franchise owner if:

You want total autonomy.

“Franchising can feel like a warm, cozy blanket or a straitjacket,” Linkowsky says. “If following someone else's process feels too constricting for you, that’s an indicator you’re better off opening your own concept from scratch. Someone who’ll question or argue about the systems in place isn’t a good franchise candidate.”

You’ve got an aversion to authority.

Franchise owners must work closely with the franchisor and abide by their rules and regulations. If you resist authority or struggle with taking direction, you may not thrive in a franchise environment.

You’re not interested in operational details.

If you don’t want to be involved in the day-to-day management of a business or prefer to delegate all operational tasks, you might find franchise ownership overwhelming, as it often requires hands-on involvement, especially in the beginning. “We’re looking for owner-operators to be very hands-on in their shop since this isn’t a semi-absentee or passive business,” Youngbeck says. “Also, if you spend all your time working in the business printing shirts vs. on it, you won’t be as successful as owners who spend their time connecting with the community.”

If you work with a consultant like Linkowsky, she uses a business assessment specific to franchising that indicates if someone is well-suited for the franchise industry. “This, along with asking poignant questions about a person's background, their financials, and establishing their ‘why’ for owning a business, helps direct their path,” she says.

What are some unique challenges franchisees face?

These are some of the most common issues new owner-operators face:

1. That initial learning curve:

Even with a proven system, new franchisees must quickly learn the ins and outs of the franchise's operations, policies, and procedures. “But if we had to figure everything out ourselves—like setting up a website, managing projects, supply chains, and inventory—it would’ve been a lot of wasted effort spinning our wheels,” Perkins says.

2. Adhering to brand standards:

Franchisees must strictly follow the franchisor’s guidelines, including branding, marketing, and operational standards. Deviating from brand standards can result in penalties, loss of support from the franchisor, or brand inconsistency.

3. Managing cash flow:

New franchisees often face challenges in managing initial costs, ongoing royalties, and other expenses while striving to achieve profitability. Unexpected costs or slower-than-expected growth can strain your cash flow.

4. Understanding risks:

“While the risks in franchise ownership can be reduced, challenges exist—it’s still a business,” Linkowsky says. Every franchise system provides a franchise disclosure document that outlines the business details. It's important to have a franchise attorney review this document and the franchise agreement to ensure you fully understand the business, their obligations, and your commitments as a potential owner. “There’s also an opportunity to speak to other owners and ask candid questions during the validation process,” she says. “If you don’t engage an attorney or go through validation, you’re putting yourself at tremendous risk.”

5. Building a loyal customer base:

Despite brand recognition, new franchisees still need to establish a loyal customer base in their specific location. This can take time and requires effective local marketing and community engagement.

“Marketing is the most crucial aspect of this business. Since much of our business model is about selling to other small businesses, schools, sports teams, community events, and even local band merch, the need to develop relationships in the community is a must. We provide the roadmap and hands-on support, but ultimately, it’s up to the owner to execute.”
-  Kimberly Youngbeck, director of franchise development at Big Frog

6. Establishing your identity in the community:

Perkins’ shop has become the “go-to” solution when a customer’s previous printer backs out, closes, or simply can’t deliver on time. “We’ve developed a reputation as the saving grace for last-minute requests, particularly because we can do what many others can’t, like offering low minimum orders—even down to just one item,” he says.

The biggest challenge, though, is managing expectations when customers see Perkins as a one-stop shop for everything—from t-shirts to banners, pens, and even car wraps. “While we’re happy to explore these opportunities, our main focus has to remain on garments and garment-related items like tablecloths,” he says. “We’ve learned that trying to be a jack of all trades leads to compromising quality, which we’re not willing to do.”

How does a franchisor support my success?

Check out some ways a franchisor should provide foundational and ongoing help as you grow your business:

Comprehensive training and continuous learning:

Perkins says his franchisor provides continuous training that covers the latest decorating techniques, tech solutions, vendor options, and business skills like profitability and accounting. “This structured guidance saves us from having to figure everything out on our own, which could have delayed our business launch,” he says. “Unlike general local seminars, this training is targeted and proven to work, giving us a clear direction for success.”

Efficient day-to-day operations:

“From customer greetings to order packing, the franchise’s pre-established systems and processes were already figured out, allowing us to start strong,” Perkins says. “The foundational support is so solid that we rarely need to contact the franchisor, but resources and feedback are readily available when needed.”

Ongoing business coaching and communication:

At Big Frog, franchisees get more than 180 hours of training and continuous business coaching. “Weekly updates from the CEO, along with webinar series, keep franchisees informed and help fine-tune various aspects of their business, such as profitability and product diversification,” Youngbeck says.

Strategic marketing support:

“Our marketing team works closely with franchisees, providing organic SEO, social media management, email marketing, and a strategic marketing calendar,” Youngbeck says.

Standardized operations and flexibility:

Big Frog provides standardized operating procedures and ongoing support through business coaching, field visits, and regular communications, including regional meetings and an annual convention. “Additionally, with minimal inventory requirements and the ability to build online stores, franchisees can offer a wider range of options to their customers while maintaining strong margins,” Youngbeck says.

How do I vet potential franchisors?

If you’re considering becoming a franchise owner, plan to ask the right questions when speaking with franchise representatives.

Ask: What are my initial and ongoing costs? Are there any hidden fees or additional costs to be aware of? Understanding the full financial commitment, including franchise fees, startup costs, royalties, and any other ongoing expenses, will help you assess whether you can afford the investment.

Ask: What level of training and support will I receive? How long does training last, and what does it cover? The training and support provided by the franchisor are critical to your success, especially in the early stages.

Ask: What’s the typical timeframe to achieve profitability? Can you provide case studies about other profitable franchisees? Can I speak with any of these franchises? Knowing when you can expect to start seeing a return on your investment helps you plan financially and set realistic expectations.

Ask: How much control will I have over business operations? Are there any areas where businesses have more autonomy?Franchises often come with strict guidelines, so it’s important to know what aspects of the business you can manage independently.

Ask: What marketing and advertising support do you provide? Are there required marketing fees, and what do they cover? Effective marketing is essential for attracting customers, so you need to know how much support you'll receive and whether there are additional costs involved.

Ask: What’s the renewal process, and what are the terms? Understanding the long-term commitment, including renewal costs and conditions, ensures that you're aware of your obligations down the line.

Ask: How do you select and approve franchise locations? What happens if my first choice of location isn’t approved?Location is a key factor in the success of your franchise, so it's important to understand the selection process and any support provided in choosing a site.

Ask: What’s the exit strategy or resale process? Are there restrictions or conditions I need to be aware of if I choose to sell my franchise? Knowing your options for exiting the franchise, whether through resale or other means, is important for long-term planning.

What advice would you give if I’m considering a print shop franchise?

There’s a lot to consider before jumping in with a franchise, so here are some tips to get started:

Do your homework.

“Reach out to current store owners and ask them what their day-to-day looks like,” Perkins says. “Dive into research on everything—techniques, equipment, supplies, materials, and the pros and cons of each. If possible, shadow a local store to get a feel for the actual day-to-day operations and what it’s like to run the business. Ask owners what they like about their franchise and whether they’d do it again.”

Gain some knowledge about decorating shirts.

While Perkins’ franchise educated him on garment types, brands, materials, and decorating techniques, he recommends coming in with some knowledge vs. starting from scratch (like he did). “The more you know going in, the faster you can get up to speed and avoid spending years just trying to learn the basics of both the industry and business operations,” he says. “Learn about the different brands, material types, and techniques beyond just screen printing, and get a sense of what the market can actually support.”

Consider working with a franchise consultant.

Trying to explore the franchise industry on your own can be daunting. Linkowsky represents more than 500 franchise concepts; her role is to understand the concepts she introduces to her candidates. “There’s no cost to work with me,” she says. “My goal is to provide an education about the franchise industry and be a guiding light throughout the process.”

“Being part of the Big Frog network has given us access to industry knowledge we couldn’t have gained on our own,” Perkins says. But remember, while a franchisor provides strong support and training, it can’t cover everything. “Don’t expect to just ‘buy in and make money on day one,’” he says. “It takes effort, research, and a true willingness to learn to set yourself up for long-term success.”

Posted 
Sun
Oct 6, 2024