Franchising is big business. According to recent research, it is estimated that there were over 745,000 franchises in operation in the United States in 2017. And that number is growing every day.
What is the big attraction of franchise companies, and how can you ensure that you go into a business like this with your eyes open? In this article, you’ll learn the most common mistakes made by new franchisees and what you can do to avoid them.
1. Believing That Running a Franchise is like Running a Business
One of the most common mistakes that franchisees make when starting out is assuming that the processes involved will be much the same as if they had started their own businesses from scratch. There is much more to it than that.
While you are most certainly investing in a business that you will be responsible for running, there are other considerations, such as training, marketing, business processes and financial, and legal matters, to take into account.
2. Bigger Isn’t Always Better
Many franchisees are led to believe by franchisors that the more franchises there are in a chain, the more successful their own venture will be. This is a mistake on both the franchisee’s and franchisor’s part.
Last modified: September 6, 2018