On the surface, starting a franchise business is a simple, but amply rewarding business proposition. While that is quite true in itself, be advised that rarely is a business proposal simple. Even in the franchise world, there are pitfalls that can bring down years of hard labour and undo a sizable investment. If you are a franchise owner, you can navigate to https://franchisesearchengine.com/ to browse hundreds of options that fit your desired lifestyle, goals, or needs.
Little mistakes have made franchising a horror story for franchisees. To help you develop some immunity from the mistakes that are common for beginner franchises, here are some errors you want to avert at all cost. The advice here applies to everybody, whether you run a burger joint franchisee or planning to buy an apparel chain franchise.
So, let’s begin:
- Beware of “Hot New” Franchises
Just as new and old can’t go together to define anything, hot and new are two misfit terms to qualify a franchise opportunity. What’s hot has to be considered old and what’s new cannot be hot just instantly.
The real benefit of the franchise lies in buying rights of a business that has been around a considerable length of time and has proven itself over changing economic climate. So, a franchise opportunity has to wait out till it wears off the “new” tag before it gets hot enough to consider.
- Buying a Franchise Doesn’t Make You Your Own Boss
Do not buy a franchise thinking you are going to be the God of your own destiny. Franchising is essentially a relationship of uniformity and conformity. It is not freedom. Franchisees do not get a free rein.
It’s the franchisor that always holds the rein. There will be orders flowing down the chain of command every now and then that you will have to make your mission to accomplish. But it’s all fair in the end because the control is exercised only to make sure that all the units are doing well and making good profits and forwarding the brand name in best shape.
- Do Not Think That Franchise Businesses Has Zero Probability of Failure Next to Independent Businesses
It would be a monumental mistake to assume that you, as a franchisee, are invulnerable to failures. There are business chains that have failure rates as high as 90%, while there are others that have next to 0% failure rates. Never go by stats that are vague.
- Take Care to Not Be Seduced by Industry Rankings, Awards, Good Press, etc.
Franchises are often advertised by press clips that are at once impressive, awards a company has received, its industry ranking in a year. While these are credentials one must take into account, they are never constant. These are variables that can be depended all too well upon.
- Never Skip Checking Online for Franchise Complaints
And finally, do not sign any franchise contract without looking up the company online for franchise complaints. Forums, message boards, discussion panels may have something you want to know beforehand. These are the places to scour to learn about the grievances aired by existing franchisees and advice shared.