Franchising sure, has its own perks but have you prepared yourself to possible problems you could incur in the process? There are some common mistakes in Franchise you need to avoid to become successful. Although not inevitable it still poses real challenges. But no need to fret as there are ways to refrain from having a Franchise nightmare story happen to you.
Expectations VS Reality
This has become a very usual scenario between the franchiser and franchisee. It might seem to be a shallow matter but it could be the reason for a business failure. To steer clear from this kind of issue, there should be a good communication between the two. As for the franchisee, you must make sure that the terms and conditions included in the contract is tolerable for you to fulfill. Speak up and inquire as many questions as possible to fully understand the nature of franchise. Upon knowing the business flow, you can now assume what is only applicable.
Disregarding Standard Operation Procedure
Franchise is really based on SOP and you have to follow it unless you want be in bad light with the franchiser. This is the business model that when followed religiously could guarantee success. This is very crucial parameter that should be consistent because customers only trust the brand depends on how the SOP is maintained by the franchisee.
Reluctance to Innovation and New Learning
Another one of common mistakes in Franchise you need to avoid to become successful is the unwillingness to learn. As the old saying goes, change is the only constant thing in the world. Franchisers are developing ways to take their business further then will suggest it to its franchisees. So decide if you will step up your game or refuse to grow and be left behind by your competitors.
Lack of Financial Resources
Not analyzing your financial capability might put you into peril. Determine first all the operational expenses and fees imposed by the franchiser. Then decide to continue purchasing the franchise if you could handle what the business requires.