Like any new business, launching a new franchise is hard work. What’s more, most new owners are likely to meet at least one or two speed bumps on the road to franchise success. Franchise problems and solutions are changing by the day. While its helpful to be a bold, fearless risk – taker while running a franchise, it doesn’t guarantee success for your franchise.
On its face, opening a franchise may seem like a simple way to run your own business. However, business is not always simple and in the franchise world the business is never really yours. Before you (franchisee) take the plunge to open your franchise, below are a few things that you should look at and take note of:
1. Don’t by a franchise to be “your own boss”.
Franchising is based on conformity and uniformity, not freedom. As a franchisee, you do not really hold the reigns. You may technically be the boss of your shop, but you must follow the orders of the head office (franchisor).
2. Seek out franchisee complaints online.
Before signing a legally binding contract with any franchise organization, it may be a good idea to see what that company’s critics have to say. The complaints of past and present franchisees indicate which aspects of the franchise require careful scrutinizing and what franchisees can expect.
3. Hire a franchise attorney before signing any contract.
It is vitalto hire somebody who is experienced in franchising to help you with the franchise opportunity as well as going through the franchise agreement and disclosure documents and then explain to you exactly what you are going to sign.
4. Understand that the Franchisor holds all the cards.
Most franchise agreements give franchisors the power to change required procedures, radically alter the product line, or require franchisees to make unexpected expenditures and to buy only from certain suppliers.
5. Spend time with franchisees in businesses you are considering.
If you want to make a franchise your life – at least for a few years – consider spending some time working for it before you buy in.
6. Don’t be seduced by positive press clippings and awards.
Stacks of article reprints and accolades from the entrepreneurial press is often more of a testament to the aggressiveness of their PR efforts than to the strength of the franchise program.
NEED SOME HELP TO DECIDE ON A FRANCHISE, FRANCHISE INFORMATION OR WITH A PROFESSIONAL FRANCHISE BUSINESS PLAN CONTACT US NOW – (27) 84 583 3143 OR EMAIL US AT: firstname.lastname@example.org