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

Just like any other business, franchising has its own obstacles

learn more about Franchise India Staff

By Franchise India Staff

Shutterstock

This story originally appeared on Franchise India

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.

Related Topics

Thought Leaders

The Collapse of Credit Suisse: A Cautionary Tale of Resistance to Hybrid Work

This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences.

News and Trends

Uravu Labs Raises $2.3 Million In Seed Funding

With the funding, the startup aims to take a significant step towards commercializing renewable water solutions, primarily directing the funds towards scaling up and forging new partnerships with leading players in the hospitality and beverage sector to expand their reach and impact

Leadership

5 Winning Habits That Will Transform Your Leadership Skills

Ready to take your leadership skills to the next level? Discover the five winning habits that will transform you into an exceptional leader!

Growing a Business

The No.1 Most Bankable Skill You Must Have to Succeed in 2023

If you don't foster this skill, you'll fall behind the pack financially and professionally in 2023.

Living

21 Productive Things to Do During Your Commute

How to use this frustrating "wasted time" to get smarter, more focused and re-energized.

Lifestyle

4 Ways To Negotiate For A Good Salary

Negotiating a salary can be an intimidating task for many, especially for those who are just starting their careers. However, with the right approach and mindset, this can become a smooth and successful process.