Looking To Enter The Franchising Industry? Here Are Few Obstacles To Look After
Just like any other business, franchising has its own obstacles
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:
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.
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.