There's a unique set of challenges and common franchise problems that comes with franchising.
Common Franchise Problems
Long Approval Processes - Franchise agreements are long - term relationships - 10 - 15 year contracts are the norm. It's essential to get it right from the start. This means oftentimes the approval process can be long and intensive.
Higher than expected operating costs - Aspiring Franchisees must be prepared to front a hefty sum of money to get the business off the ground. Between licensing fees and opening costs, the amount can be huge.
Less Control over the Brand - Affiliation with beloved brands give franchise owners an advantage in recognition and brand affinity. But it can also work against you.
Lack of Capital - Like other new businesses, franchisees will need a sufficient amount of capital to get started on the right foot. Getting enough capital is particularly challenging in the first year due to the sheer cost of creating the system.
Hiring the Right Team - Another common franchise problem is finding the right team to hire. The team with which you surround yourself is one of the most important aspects of starting and running any franchise.
Poor Support Structure - New franchisees will require a good amount of support to plan and scale the proper infrastructure.
Starting any franchise takes a lot of hard work. Therefore, it's critical to have the right strategy to scale the brand successfully. With so many challenges with franchise control it is vital to use business management software like -BusinessPowerTools - http://www.businesspowertools.com
WHEN YOU WANT TO SET UP A SUCCESSFUL FRANCHISE BRAND YOU WILL NEED ALL THE HELP THAT YOU CAN GET - (27) 84 583 3143 - Email - money@global.co.za