Franchises

Looking To Enter The Franchising Industry? Here Are Few Obstacles To Look After

Just like any other business, franchising has its own obstacles
Looking To Enter The Franchising Industry? Here Are Few Obstacles To Look After
Image credit: Shutterstock
2 min read

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Usually, new franchises experience a rapid growth, which could be described as the “honeymoon period” (the concept being excitingly new). In this phase, franchisors are usually full of energy and ideas, coming onboard with sheer enthusiasm.

However, after a while, franchisors start facing difficulties. As a franchisor, one should accept the harsh reality that with new emerging competitions, one should be ready to discover a whole range of obstacles.

Franchisors face these few below mentioned common hurdles:

Insufficient Capital

Giving the business a franchising makeover is expensive, requiring proper planning and strategies. From hiring consultants to lawyers, there are certain hidden cost procedures which are often neglected by the franchisors. This leads to the disbalance of capital, affecting the brand’s sales.

To avoid this, franchisors should ensure that they have sufficiently stable capital, to support the next stage of growth.

Support Structure

A significant amount of support is always required by the new franchisees, which is a necessity. Yet, many franchisors neglect to put forward a growth-ready infrastructure for support systems, procedures, and processes. It means that when a business experiences a sudden expansion, the franchisors are not equipped to cope. Lacking website capacity being one such example.

Thus, while developing a franchise model, franchisors should ensure that they are ready to provide support to franchisees to cope with volume related issues.

Retaining the Right People

Quality of the franchisees is the key to the long-term success of any franchise business. Quality rather than quantity should be the mantra while building your own franchise brand. In addition, franchise recruitment mistakes can result in a downward graph.

A happy team of franchisees is the biggest asset of any franchise business.

This article was originally published on Franchise India by Shahram Warsi.

More from Entrepreneur

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.