I’ve seen hundreds of businesses succeed at franchising. I’ve also seen a number fail. While the paths taken by the successful are many and varied, the paths to franchise failure are surprisingly predictable.
Failure, like success, does not happen by mistake. It happens because people made the wrong choices. Unfortunately the mistakes we make in business are often avoidable. Here are six common mistakes companies make when seeking to franchise their business.
1. Ready, Fire, Aim
Probably the single greatest mistake made by budding franchisors is a lack of planning. Too often, we find that new franchisors start out by asking their lawyers to draft their franchise legal documents without giving a thought to the importance of the business decisions that these documents contain. Read more.