Are you thinking of getting on the world of franchising?
Franchising generally requires low working capital and has a 90% survival rate. In franchising, you will be buying into a proven successful concept, product, or service. This may guarantee you a higher return on your investment.
When you go into franchising, you’ll get lots of help from the franchisor in starting and running your franchise.
The statistics and advantages may sound promising and encouraging. But in reality, not all franchising businesses last. Just like any business venture, franchising has its share of risks. So, before you jump into franchising, consider these factors.
Here are the 3 common pitfalls in franchising and how to avoid them:
- Measuring a franchise’s success through its awards, rankings, and good press
Awards do help in boosting a business’ reputation. It shouldn’t be the only reason for you to be a part of it, though. As Sean Kelly, publisher of UnhappyFranchisee.com, puts it, “Stacks of article reprints and accolades from the entrepreneurial press is often more of a testament to the aggressiveness of their PR efforts than to the strength of their franchise program.”
Looking at awards and accolades is not reason enough to open a franchise. In fact, it could be disastrous. Awards are merely proof of a company’s aggressive PR/marketing efforts and may not speak about the strength of their franchise program.
So, don’t look at awards to gauge a particular franchise business as a sound investment. Rather, do your due diligence and do your research first before you invest in a franchise.
- Failure to seek out complaints online.
Don’t just visit a company’s website to check about their franchise program. After all, all you may read are positive and encouraging posts about their franchise program. Instead, read discussion sites and forums where existing franchisees open up about their grievances or complaints, and disappointments about the franchise. You could learn a lot from these real and unbiased stories coming from real people.
- Expecting complete autonomy.
If you want to be your own boss, then think again, “Is franchising really right for me?”
One main disadvantage in franchising is that you are obliged to follow the rules and guidelines of the franchisor. These rules and guidelines are the proven reasons that made the business a success.
Once you fully understand the fine print on the business’ set of rules and guidelines, then you yourself can set your own expectations and know what you’re getting into when opening up a franchise business in the first place.
If you are currently looking for a franchising business that can give you promising results we encourage you read about HydroKleen.
HydroKleen is a great business opportunity if you are considering opening a franchise. HydroKleen is an air conditioning cleaning company based in Australia. Our franchise partners are growing by the minute and are sprouting like mushrooms all over the globe. We started franchising in July 2010 and since then we’ve introduced HydroKleen to over 35 countries throughout the world in just a short span of time.
But before you make your decision, we highly encourage you to follow our advice in this blog post. Do you research, look beyond the awards, read complaints or ask our existing franchise partners about HydroKleen and understand the nature of a franchising business.