10 Challenges Facing Franchise Owners (INFOGRAPHIC)

10 Challenges Franchisees Face

What challenges are you likely to experience as part of franchise ownership on the road to entrepreneurial success? Here are some thoughts from the experts.

10 Challenges Franchisees Face

To understand the exact challenges franchisees face, Arizona-based facilities services company OpenWorks spoke to some franchise industry experts. It then compiled a list of 10 specific challenges and some disadvantages that franchise owners may face.

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Let’s take a look at what the experts have to say.

Investing in a Business (Franchise or Non-Franchise) is Risky

Unlike a startup business that can take off on a shoestring budget, a franchise requires you to put your money on the table.

You Have to Stick to Certain Rules

When you own a franchise, you must be prepared to play by certain rules. You cannot add your personal touches with the objective of improving the brand.

Most Franchises Have a Minimum Net Worth Requirement

Your chances of owning a franchise depends largely on your financial strength.

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Owning a Franchise is a Big-Time Commitment

You can’t be a part-time franchise owner. You have to make a serious commitment to run the establishment.

Consider Your Community – Will This Franchise Succeed There?

A smart franchise owner does his research before diving into the business. A comprehensive research helps franchise owners assess their local marketplace.

Rick Grossmann from Franchise Hub says the “evaluation should include the suitability of the business model for the region, competitors and overall available customer base for the products and/or services.”

Expect High Start-up Costs

Expect start-up costs to go high when you enter this business.

Be Prepared for a Complicated Exit Strategy

Different franchise systems have different exit strategies. In many cases, there are multiple steps involved in disposing off your franchise.

Make Sure You Have Adequate Support

To succeed, you need a franchisor who can provide comprehensive support along the way.

Be Prepared for a Long and Tough Approval Process

It’s therefore best to consult other franchisees to have a clear understanding of the approval process.

Find That Work/Life Balance

Owning a franchise can be taxing and it might cut into your family time.

To know more about the challenges franchises face, take a look at the infographic below:

10 Challenges Franchisees Face

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Shubhomita Bose Shubhomita Bose is a Staff Writer for Small Business Trends. She covers key studies and surveys about the small business market, along with general small business news. She draws on 8 years of experience in copywriting, marketing and communications, having worked extensively on creating content for small and medium sized enterprises.

One Reaction
  1. Well, there are downsides to buying a franchise. The advantage is that you get to do business with a known brand and you don’t have to do the marketing yourself.