Franchising is a grand adventure!
When you buy a franchise, you take on a wonderful opportunity and amazing adventure, but you also are making one of the biggest commitments of your life and it’s important to be able to navigate this journey, and its decision points, with care and wisdom. Many times, things work out just fine and everyone comes out a winner, but sometimes I see people make mistakes or not consider important aspects of franchise ownership. So, with that said, here are the 5 most common mistakes I see potential franchisees make.
Quick Links In This Article:
- Mistake #1: Not Doing Research into the industry, market, and competition
- Mistake #2: Thinking you’ll be independent
- Mistake #3: Not spending time with other franchise owners
- Mistake #4: Not thinking through the numbers
- Mistake #5: Not finding advocates along the way
Not Doing Research Into the Franchise Industry, Market, and Competition
Everything has a season and in business, this is especially true. Markets fluctuate, change, and competitors come and go. So, when making a decision like which franchise to purchase or apply to purchase, it’s really important that research is done to ensure you have the highest likelihood of success. — This is one of the principal ways I help folks, actually.
Where it’s your job to do the heavy lifting once the deal has been made, it’s my job to do the heavy lifting to ensure you’re making well-informed decisions along the way, leading up to you opening your doors. So many times, you simply don’t know what you don’t know, and having someone alongside you for the journey means many more of those blind spots are removed from the equation and you’re more likely to be successful.
Thinking You’ll be Independent
In a lot of ways being a franchisee means you’re your own boss. This 100% depends on the franchise and your goals, but it’s very possible. On the other hand, though, the big value-add for buying a franchise is that you’ll have a lot of the tough work done for you, and the consequences of having that done for you is that you’re not going to be in control of… finding and sourcing ingredients, materials, or supplies (for example); or being able to choose your location (in some instances). The value is that it’s all taken care of for you, the drawback is, well, that it’s all taken care of for you.
So, when you make the first step towards franchise ownership, go into the discovery process with the understanding that decision making is a consideration worth talking about and understanding.
Not Spending Time with Other Franchise Owners
Sometimes, a franchise will pair you with a current franchise owner to shadow or interview, but other times this isn’t part of their discovery process. That said, in either situation, I highly recommend that you seek out and find current franchise owners and ask them questions that help you understand their situation.
I love helping pair franchise owners with those looking into franchising as an opportunity because I find that it really helps cast a light on what the life of a franchisee is really like. Not the dreams or notions someone may have, but the everyday reality.
Not Thinking Through the Numbers
Numbers can be intimidating and while everything is listed out in your franchise agreement, knowing the context around those numbers, what they really mean for your future, and how they factor into your likelihood of success is essential. A big component of my role as a franchise consultant is helping provide this context and wisdom so you’re better able to realize the lifestyle you’re hoping to achieve.
Of note: it’s not that a franchise will hide numbers from you or not be willing to explain them, but they’re not going to have the time to ensure those numbers fit into your portfolio strategy or personal goals.
Not Finding Advocates Along the Way
Simply put, having a team who’s your advocate is critical to ensuring you’re making the best decisions for you. Most folks and franchises want you to win, but without a knowledgeable guide to asking the right questions, you’re not going to have all the information you need to make informed decisions. Here’s where I can help.
Hundred Acre Consulting
I started Hundred Acre Consulting to help entrepreneurs and investors find a coach and guide in their franchise journey. Whether you’re looking for a semi-absentee opportunity or a franchise that requires you to be fully involved in the day-to-day operations of the business, I’ll help you find the opportunity that matches what you’re hoping to achieve for you and your future.
Please reach out to me if you would like to have a discussion or feel free to peruse some of the opportunities available today.