Many people decide to get involved in franchise businesses as they think that it automatically puts them on the fast-track to success. While it is true that the core principles of the business have already been laid out for you, there are still plenty of common mistakes that need to be avoided. The risks of starting a franchise business are just as real as the risks of starting a regular one. With this in mind, here are a few common mistakes that franchisees make and the ways in which you can sidestep them.
Underestimating the Costs
When many people look at an opportunity such as a vape shop franchise, they automatically look at the franchise fee and don’t look beyond it. However, there are many other costs involved in a business of this variety that you need to be aware of. There are plenty of other overheads that you need to take into account. When you are working out your sums initially, it is always better to overestimate rather than underestimate. It is much better to be pleasantly surprised rather than crushingly disappointed!
Not Enough Research
A lot of potential franchisees fall into the trap of not doing enough research as they think that this has already been taken care of by the parent company. However, you should not just take all your information from the franchising company’s website. Instead, you should seek to find out about the experiences of the people who have actually been there and done it. You may be able to find some accounts online and connect with people via social media or forum sites. If possible, you should aim to speak to people face to face and even pay a visit to one or two branches. This way, you can get a much clearer picture of how everything is run. Not only this, but you can also ask all the questions that you would like along the way.
Expecting to Have Complete Control
If you want to run a business in which you have complete control, the best course of action is to open an original company. A degree of control is always going to be inevitably relinquished to the parent company. The franchise model will be set in stone, and there is a clear roadmap that you will have to follow. This is the price that you will naturally find yourself paying for a business model in which the risks have been brought down to the minimum. If you fail to follow some of the clear instructions that have been set out for you by the parent company, this will mean that you invalidate your legal agreement. As you would expect, this can end up getting you into all sorts of hot water. If you are willing to stick to the tried and tested formula, this may well be the type of business for you.
Not Fully Understanding the Terms and Conditions
When you go far enough along the route of launching a franchise, you will also receive a document that outlines all of your terms and conditions, as well as your legal responsibilities. Unless you have a legal mind, it is worth having a solicitor look over the document for you. This way, you will have a much clearer picture of what you are letting yourself in for. There are legal specialists available that specifically deal in the franchising field. While they may seem like a high initial expenditure that you have to bear, they can end up saving you a hefty sum of money in the long run, as well as plenty of legal headaches in trying to work out everything yourself.
Failing to Learn the Basics First
Anyone who runs a business of their own is usually a driven individual, and this often means a high level of impatience too. However, a lot of people think that because the business model is already set out, they can start with all guns blazing. In truth, you should focus on doing the basics right first. After this, you can then grow the business further and even acquire more outlets as you expand.
There are plenty of opportunities to start a franchise business. However, there are also a lot of mistakes that you can make along the way as well, and it is worth knowing about all of them. By avoiding these common traps, you make it much more likely that you will achieve the type of success you are looking for.