Proven Match


Common Franchisor Mistakes

As we’ve all heard, the old adage states, “everybody makes mistakes.” It’s one of the primary ways that we learn and grow. But guess what? As a franchisor, you can’t afford to make some mistakes – especially those that are preventable. During this week’s edition of the Proven Match blog, we’re going to look at some of the most common franchisor mistakes, how they happen and what can be done to prevent them. In no particular order, here are some of our observations:

The Death Grip

Many franchise brands start out as a truly unique concept with excellent business potential. But many franchisors find out that inflexibility can lead to disaster. We call it the Death Grip. While passion will get you far in the recruitment of franchisees, unwillingness to adapt, improvise and overcome will lead to problems down the road. The key to avoiding this mistake is creating a system in which a free flowing exchange of ideas is present. Be ready to listen and accept an alternate viewpoint for the sake of progress.

False Starts

When an entrepreneurial concept takes the leap from being a successful small business to franchising, it takes careful planning. We think franchising a worthwhile business concept is the answer, but so is scalability. Building the right team, getting the right network on the ground and scaling the growth into manageable territories is smart planning, not timidity. Going coast-to-coast right out of the gate may lead to unforeseen circumstances. Chart a steady course.

Pump Your Brakes

When a business concept starts to take off or, go viral, as they say these days, there may be the temptation to rush things to get your entrepreneurial idea into franchise mode. But in this case, speed kills. It takes a steady and measured approach to see a business transform into a franchise concept. Just think of the required paperwork and what all goes into getting things right the first time around. A poorly written franchise agreement, FDD, training manual or even bad legal advice can doom a proposition quickly. Research the similar paths are taken by other successful franchise rollouts and see what you can learn.

Get Compliant

Franchising a business concept requires compliance with U.S. and state laws, many of which differ. As a budding franchisor, it’s up to you to make sure that your new concept will be in compliance with all applicable state and federal laws. This is obviously where a legal team is preferable to guide you through the process—especially one with a glowing track record. However, failing to comply with the laws of doing business the right way not only jeopardizes your operation but may also become an avenue for rescinding franchisee agreements. Franchising is regulated by the Federal Trade Commission and there is truly no excuse for not knowing the law.

As one can see, the aforementioned pitfalls aren’t anything new to the world of business. In fact, some might sound quite clichéd to the average reader. But they’re listed here for a reason. Franchisors do continue to make these and other common mistakes for a myriad of reasons. But one underlying current which could solve any of these problems is patience. Due diligence. Taking the proper, measured approach—even in the face potentially huge business success. Keep in mind that we want to see as many new franchisors as possible. But doing it the right way by avoiding the pitfalls will mean fewer headaches down the road.

Trust us on that one and best of luck!

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As a franchisor, you’ll want to know which existing and potential franchisees best fit your business concept. Proven Match is the proven solution in determining those factors. Through our proven behavioral assessment techniques, predictive analysis becomes a predictive success for your franchise concept. If you’re ready to show your leadership by getting started, give us a call and we’ll put you on the path to a more productive year in 2017.

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