To franchise or not to franchise

August 24, 2011
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Experienced entrepreneurs Rick Bravard and Daren Carter thought they were onto something when they came up with the idea of a mobile trailer filled with video games and other entertainment they could rent out for parties.

Turns out their brainstorm came a few years after someone else’s, and now their Greenfield startup Game Guru 2 U is competing against a handful of similar companies that already are franchising the idea nationwide.

The partners remain optimistic, though. As IBJ reported Aug. 22, their one-year revenue goal is $75,000 to $150,000, and they hope to grow the independent business by selling electronics-laden trailers to others looking to capitalize on the $25.1 billion U.S. video game market.

Bravard and Carter don’t plan to offer franchises, though, calling the ongoing fees associated with such enterprises onerous. “That can bite into your bottom line pretty quick,” Bravard said.

Franchisors would argue that the benefits outweigh the costs, since they’re selling a proven concept and the tools they used to achieve success.

Of course, no business is risk-free—especially in the current economic environment. So what do you think: Are franchises the safest bet for small-business owners these days, or is it better to go it alone? Why?

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  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

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