The common mistakes new franchisees should take care to avoid
Buying into a franchise is always going to be an alluring prospect to those that have an entrepreneurial spirit or those that wish to take control of their own working life. And for the most part, it can go very well – you learn quickly, have a support network surrounding you, and you can grow and evolve into the franchisee role at a pace that suits you.
However, there are also many common mistakes that new franchisees make. While rarely do they have disastrous consequences that could put an end to your franchising journey, these mistakes could still impact your experience and perception of what it means to own your own franchise.
But these mistakes are easily avoidable! By knowing what to look out for, you can side-step the pitfalls and enjoy a smoother franchise progression. Read on to learn what the most common mistakes made by new franchisees are.
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One of the worst things you can do as a new franchisee is to not conduct enough research. This is research into the industry, into the franchise you’re buying into, and the skills required to make a franchisee excel at their job.
Also, don’t just blindly buy into claims made by a franchise or their partners – their job is partly to sell the franchise to other potential investors and, because of this, claims could be exaggerated or falsified. Take the time to research and verify statistics and statements yourself, no matter who they come from.
Taking on too much
Yes, the idea of being your own boss is incredible. However, don’t make the mistake of trying to take on too many projects and deadlines all at once. Be realistic with what you can achieve within a certain timeframe.
Though the temptation to impress your new superiors could be overwhelming, the reality is that hey will be more impressed with a franchisee that knows their work ethic and pace and owns it. If you work in a franchise dealing with acquisition, always make sure that your first site is successfully running before moving onto the next.
Wanting too much
One of the biggest advertisements of franchising is that you get to “be your own boss!”. And while…yes, you do have control over some decisions – more so than an ordinary job – you still have to sit somewhere in a pyramid of other franchisees.
If you’re given instructions by a franchisor, then you need to follow them. This could be on selling etiquette, customer service, set price ranges, or even a certain style and aesthetic of decor if you run a physical vendor site.
Whatever it is, failing to follow the rules set for you could result in you being reprimanded or being terminated from that franchise. That’s something nobody wants. The only exception to this is if you’re starting your own franchise venture from scratch; in this case you’re the head honcho at the top of the pyramid and you get to call the shots.
Not investing in legal support
Before you become a franchisee, you should aim to enlist the help of a legal professional, such as a franchise attorney. This is for a number of reasons. Firstly, to ensure that you understand all the jargon in your contract(as easy and tempting as it is to simply skim read to the end) and make sure there are no hidden clauses or dead-ends.
It’s also critical to enlist the help of a franchisee attorney for the possibility that something could go wrong. Franchising is a huge commitment that can sometimes take up 10,20, even more years of your life, so you want to be protected against any eventuality.
Not considering the worst-case scenario
As appealing as the franchisee life sounds, it isn’t for everyone. To determine whether becoming a franchisee is the right next step for you and achieving employment autonomy, think about the worst-case scenario that could come about as a result of joining a franchise.
If it goes under, will you be able to support your family and pay the bills? Do you have other predictable and reliable streams of income? Considering the worst outcome could also strengthen your position as a new franchisee because you can begin to prepare for that outcome – though hopefully, it would never happen.
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