Friday, March 1, 2024

Common Mistakes Every Franchisor Should Avoid

Operating a business is not five finger exercise. You need to stretch your thinking ability everyday to craft innovative ideas for running a business. It’s going to be really hard when it comes to managing your business franchises as well. As a franchisor, you need to be extra alert and cautious. To maintain the brand image of your company, you need to keep a number of things in your mind. First, you need to search for astute businessmen who can work intellectually as a franchisee. Also, you need to make sure that they are abiding by rules and responsibilities mentioned in the contract. 

Making mistakes is imperative while running a business. It is important to learn from your mistakes and make improvements. However, making the same mistake again and again is problematic. Take help from professionals, if you are unable to solve your problems on your own. For example: To hire adept teaching staff for an education franchise, you can seek help from human resource professionals. If you are a novice franchisor, you need to save yourself from making mistakes that can adversely affect your business. Read this article to know common mistakes every franchisor makes and do your best to avoid them. 

Go through the following points to know common mistakes every franchisor makes and try to avoid them:

Linking with franchisees without critical thinking

Note that your franchisees are representatives of your business in different locations. Try not to associate with franchisees with a blindfold. It can severely affect your brand image. As a result, it can reduce your customer count. Do you want that? Of course, no! So, make sure you are selecting potential franchisees for your franchise unit. Check their knowledge regarding business. Also, analyze whether they are financially stable to manage the operations of your business franchise or not. As a franchisor, you need to think analytically while linking with franchisees. 

Keeping franchisees below you

To maintain cordial relations with your franchisees, treat them as your equals. They are as much of a boss as you. Remember, they are your associates not employees. Also, they are paying your royalty fee in return for using your brand name, trademarks, patents etc. Behave amicably with them and encourage them to discuss their business ideas. This way you can easily cooperate and coordinate with your franchisees. Also, it will motivate your franchisees to work harder and enhance the brand image of the business. 

Not preparing relevant FDD

FDD (Franchise Disclosure Document) is represented to prospective franchisees 14 days prior to signing the contract. This document contains the details of franchisor’s business. Additionally, it states the duties and responsibilities of a franchisee. The most common mistake franchisors make is that they copy the FDD document of their rivals. As a franchisor, make sure you are preparing a unique FDD document that is suitable for your business. Also, your FDD should state clear franchise goals. It can aid franchisees in making a decision whether they should enter into a contract with you or not. 

Neglecting problems

Sometimes franchisors keep on neglecting the problems. They assume their problems can be solved magically. If you also think the same, then you are completely wrong here. You need to work on your problems and make sure they are solved. So, never be afraid to solve your problems. Try to solve your problems one by one. If you keep on accumulating your problems, chances are you won’t be able to solve them in the end. Seek help from your staff and franchisees to resolve any serious issue. 

Not telling business secrets

One of the attributes of a franchise business is its ability to get replicated. As a franchisor, you can’t keep any business secrets from your franchisees. It can affect the brand image or reputation of your business. Tell your franchisees enough trade secrets and business knowledge. It can aid in maintaining brand consistency. For example: You might have visited different franchises of Dominoes. Do the taste of their food differ? Probably not! It is because their franchisor has shared secrets of every recipe with their franchisee. When a franchisor keeps secrets from their franchisees, it is hard to maintain the quality of products/services in the franchise unit. 

Inadequate training and support to franchisees

An ideal franchisor always offers regular training and support to his/her franchisees. Giving your franchisees regular training can aid in polishing their knowledge gaps. Moreover, it can help them think creatively while running a franchise. We would suggest you conduct at least one training session once in six months. This way you can easily communicate necessary things with your franchisees. Additionally, you can ask if they are facing any problem while operating their business. It is your responsibility to give them a solution. 

Taking staff for granted

The quality of your products/services plays a significant role in attracting a throng of customers. But, it’s the behaviour and knowledge of your staff that can help in retaining customers. Apart from satisfying your customers, you need to keep your staff happy as well. Consider them a part of your organization and encourage them to share their ideas for running business smoothly. Also, give rewards and recognition to encourage them to perform better in the future. If you want your coaching franchise to work efficiently, consider this point for sure.


These are some of the common mistakes that you need to eschew as a franchisor. Otherwise, you’ll fall into the abyss of failures. It’s obvious you’ll never want your business to fail. So, try to be careful and never commit the afore-mentioned mistakes while running your business franchises. 

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iDeal BlogHub's Editorial Team delivers high-quality, informative content across multiple niches. Led by an experienced editor-in-chief, their expertise spans industries to provide unique perspectives.