7 Common Mistakes Committed by Franchisors
If you are thinking of franchising your business or if you are already a franchisor, then here are some common mistakes to avoid.
Franchisor Mistake 1: Not Having a Well Defined Brand
It is said that if you are able to define your franchise business in less than six words and a stranger is completely able to understand it, then you have a well-defined brand that is likely to attract franchisees.
As a franchisor, clearly define your brand to attract prospects.
Franchisor Mistake 2: Not Staying Flexible in Your Franchise Operations
Most of the franchisors have their own view of franchise operations and do not take kindly to suggestions for change.
A franchise network is prone to changes in customer sentiment, and franchise networks which resist transformation is unlikely to succeed in the long run. Be flexible with franchise operations.
Franchisor Mistake 3: Not Having a Legal Counsel
Expert advice from a franchise attorney is essential to run your franchise business smoothly. Sound legal advice is critical at every stage of franchise operations.
If you are franchising your business to expand, then legal requirements may change from state to state and country to country. Having an expert attorney can save you from risks and loss.
Franchisor Mistake 4: Not Defining Your Franchise Territory
It is important to build your territory based on your capability to finance and support an extended network.
Expand in small units rather than trying to conquer the whole globe all at once.
Franchisor Mistake 5: Bad Sales Strategies
Franchising depends on successful sales strategies, and any imprudent step often leads to huge losses.
Sticking to a stable customer base and product portfolio that worked well in the first place is a sound thing to do.
Franchisor Mistake 6: Not Being Transparent to Your Franchisees
One of the main responsibilities of a franchisor is to maintain transparency with your franchisees.
For your franchise brand growth and sustenance, franchisee support is essential. You will receive it only if you provide the right training and support to your franchisees.
Franchisor Mistake 7: Not Maintaining Consistency
Being a franchisor, it is not prudent to change the franchise agreement from one franchisee to another. Inconsistency should also not creep in to the support and training provided to franchisees.
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