Those who understand franchising will agree that, this is not a proven formula of success, particularly in current economic, fluctuating conditions. Only those who have realized before entering this system, that this is a long process and cost effective, can expect to succeed. Sometimes it may take as many as 4 years to recover the investment and start making profits. The claim of franchisors for 10, 20 or 30 months to recover investment, is false. Over 30% of franchiser and the franchisee fail due to improper understanding of this business or lack of consulting expertise of a mentor.
It is very important for the franchisee to evaluate himself if he is competent for this venture. The franchisor should have success growth and profitability track record of minimum 10 years. Instead of gut feeling, one should carry out comprehensive reiki, research in market and Google, take customer feedbacks, consult commercial, financial experts, competition, everything. The franchisee should prepare himself for shifting into this great business and lifestyle, as if he owns the brand. He should choose a business the way, he chooses a bride for life. The relationship between the franchisor and franchisee should be like matrimony.
The terms of agreement , operating procedures should be known to both by heart. Both should trust each other and if any doubts occur, as happens in married life, both should communicate or use services of a counsel, instead legal notice or separation.
If a mother has 5 children and one is not doing well, she gives this child extra time and effort. It is ethical and moral responsibility of franchisor to go out of way to support a non performer, because he has chosen this partner, therefore he should own the responsibility.
It would be better to sign up those who have worked for long time in marketing, operations, where systems are strictly followed and they have excelled in their career. Their love for people and customers should be the most important selection criteria. In this business there is no place for ‘system changer’ stubborn or ‘independent minded’ people.
Franchising needs consistency in both parties to understand that in this business only steady, even though slow, wins. They should be prepared mentally, financially.