Franchising does give you an upper hand over starting a business from scratch. The fact that franchise is a proven business model for success, where the franchisor offers you adequate training, support and systems to ensure a successful launch does not guarantee the profitability of the franchisee.
Do not skip due diligence
Owning and operating a franchise business is very attractive. But one must not be fooled into thinking that the model itself will assure profitability. Finding the right franchise does not stop with just numbers. It includes researching about the ethics, values and culture of the franchisor. This is a long-term relationship, so make sure you find the right partner as mistakes can cost you time, money and resources.
Not adhering to the franchisor’s process
It is common for franchisees who have gained some experience to stop following the franchisor’s system and then wonder why things are not going right. The process is in place to help you sail smoothly, hence ricking different approach is not the best way to thrive in your business.
Absence of planning
Planning is crucial for the successful execution of any business or goal. It helps anticipate for challenges and helps guide the business towards its mission. Planning must include long term and short term goals that align with the company policies. Any franchisee who plans and tracks their goals and trends also find opportunities to capitalize. Well planned business thrives better and for longer in our ever changing and competitive business environment.
Lower engagement
A higher engagement between the franchisor and the franchisee is essential for strengthening the relationship and business results. The success of the franchise is not solely dependent on the capability of the franchisor or franchisee separately. Rather it is directly related to how well the resources provided by the franchisor are implemented and executed but the franchisee.
Further engagement with your staff, client, community is vital for long term success of the business. Without engagement the franchisee is left in a dangerous spot towards failure.
Failure to grow
The responsibility of ownership can sometimes ignore the scope of self-development and employee development.
Franchisees must keep learning and educating themselves by attending annual or bi-annual franchisee meetings, or industry specific conferences or read related literature.
When you fail to encourage employee development through cross-training, conferences, skills training like planning, designing surveys, building incentive they end up with lower morale boosters. As a result of low employee morale, there is increasing absenteeism and lower productivity.
Source: What Franchise
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