To franchise or not to franchise

August 24, 2011
Back to TopCommentsE-mailPrintBookmark and Share

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?


Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by