Franchising is a less stressful means of starting a business. It could be the best type of business for aspiring entrepreneurs since the process is not as complicated as starting their own business. However, not everyone could fully understand the benefits of owning a franchise business.
Starting a business can be easy. However, maintaining the company can be difficult, especially if the entrepreneur is unprepared for the possible challenges of being a business owner, franchisor, or franchisee. This article will be about the everyday struggle of franchisors in their business and how they can help improve their business for their long-term success.
If looking into franchising your business would be the answer to your need to expand, every franchisor’s challenges do not stop there. No matter how perfectly the business plan, still, there would be instances of unavoidable circumstances. In any kind of business, no entrepreneur can be free from these trials.
As a franchisor, you must find ways to ensure that the business continues running smoothly. Here are the top challenges that every franchisor needs to face:
- High capital. To join the franchise business industry, you need to ensure that you have the money to support the needs of your franchisee. It, of course, entails having enough resources to access the tools and assist your franchisees. While it is true that the investment placed by a franchisee would somehow be of help to you financially. You should not wait for the money to come in before having everything a prospective franchisee needs. You need to have a credible reputation to earn the trust of your future franchisees.
- Brand Image concerns. I have seen several franchise businesses wherein each franchisee seems to have their “own brand image.” And this is not good for the company. It means that the franchisees should follow everything that the main business has. When we talk about brand identity, visible elements such as color, design, and logo should be present, which will easily distinguish the brand from its competitors.
- Unskilled employees. Every employee that will work for the franchisee must undergo a training/workshop provided by the franchisor. There should be no shortcut to training since every business has its policies, processes, and procedures, which every employee should know by heart. Indeed, providing training would mean added expenses on the franchisees, side. However, failing to train the employees correctly would affect how the business will run.
- Internal issues. The franchisee is responsible for looking after the business, as an entrepreneur should. However, franchisees sometimes lack the time and effort to thoroughly check the company and ensure everything is running according to expectations. And with that, the franchisor should ensure that each franchisee works according to its standards. You need to check each to determine that every franchisee does not deviate from the agreement. Having multiple franchisees may mean more money in your bank account. Conversely, that does not mean that your work stops as soon as you start franchising your business.
- Insufficient supply. It is the franchisor’s responsibility to ensure that all products and supplies needed by all franchisees are available all the time. Otherwise, this would affect how the business would run. It is a no-no to substitute ingredients. Franchisees should have all the same standard quality each time, all the time. Procuring raw materials is a must. Hence, franchisees should place their orders to provide ample time for the products to arrive.
- Issues with Franchisees. From time to time, somebody may raise concerns regarding the business. The franchisor should always have time to talk to each franchisee so that the franchisor can provide a solution before the problem worsens. Your franchisees are your business partners. Providing answers to them would also mean an increase in profits.
Being a successful entrepreneur is an outstanding achievement. It can be challenging when new franchisees go on board the first few times. However, you can get the hang of it for as long as your heart is into making your business successful. When opportunities such as having the means to open your business for the franchise, you need to work for it to maintain the status of being credible and trustworthy.
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
