We hosted a Webinar on this subject (Webinar #9), but I feel compelled to write something as well for those people who do not want to devote an hour to our discussion. I believe it is very important for people to understand why we made the very clear decision to not become a Franchise.
I just had a conversation with the owner of an ice cream truck company who told me that 60% of the people that are looking at an ice cream truck, either want a Shaved Ice Truck, or would like to at least add Shaved Ice to their truck.
This has become quite the trend and Snowie has been the leader in this new space. However, something else that was brought up in that same conversation was a suggestion that we have heard before. It goes something like this, “You guys could make so much more money if you were a franchise, why don’t you franchise?” I am dying to give you that answer, so here we go.
First, let me ask you a question, what can you get from a franchise that you cannot get from Snowie? Nothing! There is not one item, one bit of support, or training that you get from a franchise that you do not get from Snowie. We also listen deeply to our clients. If there is something that you feel like you are missing, we would love to hear about it.
Next, who is the beneficiary in their question? Is it Snowie, or you who would benefit from us becoming a franchise? The answer is Snowie.
Let’s flip the question a little, what do you get from Snowie that you do not get from a Franchise? The answer is: Freedom! Freedom to run your own business anywhere and in any way that you like. You may initially feel comfortable with a franchise because they sell you a specific area, but take a moment and think this through a little. Sure, you will not have to compete with anyone within the same brand or franchise, but you have cut your legs off for any other potential area. The whole point of a mobile stand or vehicle is to limit the necessity of “location, location, location” in your business success. Besides, you still have to compete with every other shaved ice vendor anyway. So how big is that benefit really? It reminds me of the story of a sales man who was questioned by a friend, “I don’t know how you go through each and every day not knowing what you will make.” The response from the salesman was, “I don’t know how you can go through each day knowing exactly what you will make.” Don’t take comfort in owning a specific geographical area. Compete! Be the best at what you do, and you will win the locations and the venues.
When you sign up for a franchise, you pay a fee, just a special bonus for being their customer. Then you keep an accurate record of all of your sales. Sure, you would do this anyway for your own benefit, but you are required by the Franchisor to keep this record so that you can turn around and pay them a royalty at the end of the year, every year.
So let me give you our hybrid business opportunity model. Being a business opportunity, we educate you, we also provide you with every bit of the most cutting edge equipment you will ever need. We give you advice that comes directly from experience, 35 years of experience to be a little more precise. Every one of us here at Snowie still do exactly what you either do or are going to do. We know the ups and downs, the ins and outs, and every other unforeseen area in the industry. We are the absolute leaders in Shaved Ice.
What kind of fees can you expect to spend with Snowie? We do not charge any amount of money beyond the price of the equipment, supplies, and marketing materials. We do not collect any royalties. Your business is yours. Think of the money you would have in the beginning of your venture and at the end of each year that you could apply to the growth of your own business if you were not locked in a franchise. Snowie earns money from you as you succeed, we do not demand it. We only receive more money as you continue to purchase the best supplies in the shaved ice industry. A franchise model will collect on the original franchise fee and royalties whether you have sold a shaved ice or not.
Another point that is not often considered, is that we are the manufacturer! Why is this important? Well, we quite literally know the equipment inside and out. If you ever have an issue with anything that we sell you, we have an immediate answer. We do not purchase 3rd party equipment that we then later sell to you at a markup. You are purchasing directly from the manufacturer. There is simply no other Shaved Ice company that can pass that test.
Come speak with us. Let us show you all that we can offer. We do not sell “blue sky”. In other words, everything you purchase from us, you can turn around and sell if necessary. We do not sell you support. We do not sell you our experience. We simply sell you the equipment necessary to make your success happen. The support, education, experience, etc., well, that naturally comes from us because we want you to be successful. Why? Well, one, we love to see people succeed, especially with our products. Two, we would not make any money if our clients did not succeed. A great majority of our clients own more than one stand, they would only do this, if their original purchase was successful.
We want you to grow, expand, be self reliant and own your own business and time. Do not limit yourself, and do not be limited by the restrictions of others.
Contact Snowie Today and let us show you how you can be successful owning your own Shaved Ice Business. We have helped thousands of people just like you.
2 thoughts on “Should I purchase a Franchise or Business Opportunity?”
I know this is an old post, but Arron you missed an important part about your business model to that of a franchise.
When you signed up to a franchise you will be given targets you have to meet and if you don’t meet these then you lose the franchise and all the money you have paid
That is a fantastic point. Thank you Terry!