Why Do Some Franchise Businesses Struggle And Fail?

| Total Words: 543

Most Franchise Businesses are successful but invariably like any other business some do fail. Why do they fail? Most franchisors fail primarily because they took the route of franchising their business without proper planning and preparation.

Although franchising is a great way to grab market share quickly and without utilising your own funds, it requires a great deal of work to make it successful. The first and most important requirement for any potential franchisor is can the business model be taught successfully?

Many franchisees will come from a background of zero business experience. They will not only have to be taught about the franchisors products & marketing but will during the course of their training have to learn basic business skills like general day to day book keeping and proper filing techniques!

In many cases a potential franchisee without any prior business experience can become on of the top performers if s/he is trained properly and given long term support. The reason for this is because the franchisor is starting with a clean slate and the new recruit is more likely to listen, learn and utilise the systems given.

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