The beauty of franchising is that it creates a win-win situation for all players involved wiz Franchisor, Franchisee, and the customer. With all the good advantages franchising brings to a franchise brand, plenty of recent Franchisors make some basic and customary mistakes in the franchise business, which sometimes result in abandoning their franchise expansion program within the initial stage itself and within the worst-case scenario, to the tip of their brand.
Avoiding mistakes should be on the top lists for it can hamper the business in a bad way, which will ultimately affect you adversely. Here in the article we have mentioned about most of the budding franchise brand make some common mistakes in their initial stages of expansion:
Getting too excited with the inflow of Franchise inquiries:
We have seen brand owners getting curious to franchise their business just because they get frequent franchise requests from their family or friends. We have seen in most cases, such franchises neither give any return to the Franchisor nor have control over their systems for these locations. Within the worst-case scenario, this even spoils their relationship and their brand identity.
Franchising without planning:
Franchising is not an impulse decision and one has to strategically plan while making a call to franchise his business. In most cases, the brand owner’s start inviting franchise inquiries without having worked upon documents and processes. Find yourself with losing control on their franchises and even misappropriate use of their proprietary marks and confidential procedures. Franchisors should avoid this mistake.
Recruiting wrong franchisees:
The foremost dangerous step that should be taken under consideration in franchising is to recruit wrong franchisees in your franchise eco-system. Most of the brands when staring a franchise fail to filter such candidates and recruit incompatible franchisees. Sometimes for the sake of entering new locations. Other times for earning the initial franchise fee in the Franchising sector.
However, they do not realize that such franchises will only be liabilities for the brand and may even pose a heavy threat to the brand within the future.
Selecting the wrong locations:
Just imagine you have an honest brand, a powerful franchise system, an honest franchise partner but a wrong location. Will can work the best? Probably not! This happens mostly when the Franchisors and franchisees fail to hold out the feasibility study and marketing research in the Franchising sector.
The team of Ketsaal provides the service for the same to avoid such issues that could anyway affect the nosiness adversely. Contact us for support today!