As the classic (and comforting) saying goes, making a mistake is not completely wrong, especially when you learn something from it. However, making the same mistake all over is what’s problematic.
In the world of franchising, creating errors is very critical. First-time franchisors usually get caught in this nasty trap, but even long-time franchisors are not spared at times. To help you get through, here are six of the most common franchisor mistakes that you should avoid.
1. Selling franchises without critical thinking.
Opening a franchise is not exactly cheap, so it’s perfectly understandable when you want to get back your money quick. However, grabbing every opportunity that presents itself without weighing all of your options can be dangerous for your business.
2. Putting franchisees below you.
Franchisees are independent contractors who are just much of a boss as you are. To build long-term relationships, treat franchisees as your equals.
3. Neglecting issues.
Problems are scary, especially when you’ve followed a systematic plan and made the best decisions. For some, walking away from issues is almost like a reflex, but doing so is not beneficial. Don’t be afraid to solve problems, even if it’s one at a time.
4. Being possessive of business secrets.
One of the characteristics of a good franchise is its ability to be replicated. Business secrets work, especially when you’re a fast food chain that protects the identity of 11 secret herbs and spices—but if you’re a franchisor who is looking to expand your business, offer your franchisees enough knowledge and trade secrets.
5. Underestimating what great legal and sales advice can do.
Franchising is governed by legal laws and sales rules that only franchise lawyers, sales experts, and in some cases, established franchisors can explain in great depth. If you’re looking for effective advice, deviate from hearsay and start consulting the experts.
6. Taking staff for granted.
The quality of the product you provide plays a vital role in your business’s success, but customers may also be coming back because of your friendly and knowledgeable staff. Avoid making quality service the least important factor in the equation by training your staff well. After all, they are one of your greatest investments.