Top 10 Challenges for Franchisors (& How to Combat Them)


Running your own franchise can be one of the most exciting, liberating and profitable experiences. However, before
you can sit back and enjoy the fruits of your labor, there will no doubt be obstacles to face along the way. Franchisors that are aware of these challenges and how to overcome them will be best prepared to get the most from the entrepreneurial opportunities that running a franchise has to offer. In this article, we’ll take a look at some of the most common challenges franchisors face and how you can prepare for them.

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1. Obtaining Startup Capital

As with the majority of new businesses, the first year for a franchisor can be the toughest. The first hurdle is a financial one; finding the startup capital to fund the franchise in the first place. Before you can even start to attract new franchisees, you will need to build your company, get the brand known and make it an attractive proposition to others looking to set up in business.


2. Building a Solid and Stable Infrastructure

Franchisors must act as the backbone of the business and lead from the top and by example. Your marketing strategies must be on point and it is essential that you have the necessary systems and procedure in place that can be repeated over and over in other franchises. Think of your first franchise as the template that other franchises should aspire to replicate.


3. Choosing the Right Franchisee

You wouldn’t just sell a franchise to just anybody. Your brand and company could be at stake. Carrying out extensive research on potential franchisees, their experience, geographic location and the target market will help you to choose the right franchisees for your brand. Devise a set of questions and prerequisites that are absolutely non-negotiable.

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Last modified: August 24, 2018

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