Franchising is not for every business

A successful franchise business requires the right leadership behind the business and at the helm of the franchisor. There are many aspects of franchise development that seem somewhat obvious and possibly more tangible in nature, such as franchise marketing systems, technology, processes, and systems, but what is lost for many entrepreneurs are the responsibilities that fall on your shoulders in this transition. from an operator and “doer” to a franchisor and “master” it happens.

Generally, these types of qualities and characteristics can be determined prior to franchising to save time, money, and heartache for everyone involved. The importance of a true self-assessment is required to make this determination as an entrepreneur considering the franchise expansion model.

For one thing, franchising requires intense levels of patience and the ability to train people who have had no experience as business owners. Some entrepreneurs have a hard time working with people they may consider weak or inept and can’t see things from the perspective of new franchise owners. If a business owner’s skill set lacks the patience and willingness to mentor people, franchising may be the wrong way to go.

Next, franchising requires a certain degree of selflessness. Large franchisors are continually looking for ways to help, support, and generate profit for franchisees. Underperforming franchisors cut corners, look for ways to bulldoze, and are singularly minded to their own advantage. These are the franchise systems you read about where lawsuits take place and franchise brands quickly crumble with poor management decisions driven by greed and myopia.

Also, when you franchise a business, the returns are not short-term. Franchise development is an effective way to build a brand quickly and grow the business into new markets quickly. Unfortunately, franchising is not very profitable for the first 1-3 years of growth due to the nature of the business and the need to reinvest in the business model, marketing, and infrastructure required to support growth. Entrepreneurs considering franchising who need or are motivated by short-term cash flow are probably better off finding alternative growth channels.

So a good franchisor is someone who is strategically minded and has a vision of where the brand and business model will go. Vision is not a trait that can be taught, you either have it or you don’t, and as the leader of a franchise network, you must be able to create energy around your ideas, have new strategies that are relevant, and a never-ending commitment to your brand and what it stands for. These are the reasons franchisees not only invest in a system, but continue to invest and believe in their commitment to a franchise. If you lack the leadership and ability to convey the opportunity of your vision and how it will benefit others, franchising will be a short-lived venture with frustrating results.

Do your due diligence and understand if you are compatible with the franchise growth system.