Posts Tagged ‘franchise failure’

Stop listening will fail your franchise

Despite our lackluster economic situation, we should never blame the recession for our franchise failure.

In franchising, we have witnessed some established franchises made it, while some others don’t – both franchisees and franchisors share their own mistakes; in franchising, “it takes two to tango” couldn’t be more relevant.

Here are some reasons why established franchises fail, looking from both sides – franchisors and franchisees:

1. Franchisors compromise too much, franchisees demand too much

In order to win franchisees’ business, some franchisors are compromising on what’s important, such as product sourcing, pricing policies, staffing…

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Failing franchise

When you are pitched by a franchise company that franchises can’t fail, just stay away from that franchise: Franchises – just like any other businesses – can fail. What to do next if your franchise is failing?

I was pitched that franchises has a better sustainability due to their inherited ability to succeed. I was also pitched that franchises can’t fail because when you buy a franchise, you buy a proven system.

Wrong – my two franchise units were going out of business for one reason or another.

I’m not going to point a finger to my franchisor…

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Paul Segreto, one of the authoritative voices in franchising, tipped me with his experience as a franchisee, teaching us how to deal with our struggling financial units.

We are business owners, not ostriches

Paul commented on Franchise Note’s Do You Think Franchising is Easy? Think Again sharing his story as a franchisee.

Paul’s story is evolving around his mistakes dealing with his struggling franchise units. At that time, he did what many of us did (and do) – Sticking our head in the sand, running away from problems by deeming our franchise units as failures too early;…

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