Franchises have made the products and services of various brands accessible to the world, contributing to expanding brands’ reach. Also, buying a franchise is a great way for entrepreneurs to invest in successful businesses and earn a great income. However, running a franchise has its challenges, and while some franchises have consistently performed well, others have failed to take off. Being aware of some mistakes franchises make can help one kickstart a successful franchise:

Jumping the gun without proper research
A brand might suddenly become popular locally because of various reasons, but that doesn’t necessarily mean that the brand will become successful at a global level. A lot of data analysis and prediction is required to understand whether a brand’s popularity is likely to sustain and, if so, whether it will be accepted in other regions as well. The research should include a background study of the brand, its target audiences and their demographics, what area they are concentrated in, and consumer trends in the place where the franchisee is planning to expand the business. One should also never take a brand’s credibility for granted, irrespective of how successful it seems at the moment. Proper research is critical in helping one decide whether to associate with the franchisor.

Expecting to become successful instantly
The franchise business is not for those who expect instant success because it requires hard work and commitment. Yes, some franchises may taste success immediately because of the industry, the general appeal of the brand and its products, or the need for such products in the area where the franchisee is extending the brand’s reach. But for some others, it may take months or even years for the business to become highly successful. So, if an entrepreneur expects the franchise to be successful as soon as it is launched, they might be disappointed.

Not hiring a lawyer – or hiring one too late
While opening a franchise, one has to deal with a lot of legalities, including franchise agreements and franchise disclosure documents (FDDs). It is natural for someone not from a legal background to be unaware of these documents and their terms. This is where an attorney enters the scene to help a franchisee with such aspects and ensure they don’t commit any mistakes. One should specifically look for lawyers who specialize in franchise establishments; this should be done early on because making the wrong move at the start may have a domino effect on the rest of one’s journey.

Choosing the wrong location
A franchise may not be as successful in certain locations as it may be in others. So, if a franchise isn’t successful, it may have to do with the location selected. A franchisee should evaluate the brand’s products against the majority demographic and their spending habits in a location. For example, a small town or village located in the interiors may not be very gung-ho about trying out gourmet foods – they might want to stick to their regular, budget-friendly foods. On the other hand, farm equipment or agricultural products may sell better in villages where agriculture is predominant.

Expanding without proper resources and backing
A common mistake franchisees tend to make is expanding too quickly without setting up a solid foundation first. Without the proper resources, infrastructure, staff, and technical support, it is extremely difficult for a franchise to sustain. One should consider these aspects closely and do all the required background work before expanding.

Not planning finances properly
Starting a franchise is a huge step, requiring spending a lot of money. From setting up a concrete store, outlet, etc., to purchasing the brand’s trademark and controlled rights and paying a hefty commission to the franchisor, a lot of money is involved. So, one needs to have a proper financial plan in place before starting a franchise. All overhead expenses should be figured out beforehand; one can consider taking the help of a financial advisor in the process.

Overlooking the importance of marketing
A brand may have become quite popular in a certain area, but when it is expanding to a different region, it needs to be marketed well to the target market in this new region. These days, no marketing strategy is complete without digital marketing, but the extent of digital marketing required also depends on whether the people in the region are tech-savvy. If not, offline marketing strategies should be used so that everyone in the area is aware of the brand and its products and services.

Not paying attention to the franchisor’s existing business model
All brands have their own business processes and systems in place, and while a franchisee have the liberty to explore and innovate to a certain extent, they should stick to the basic business framework that the franchisor has set. This way, there is consistency in the way the brand functions, and one can avoid conflicts with the franchisor. When one goes against the franchisor’s basic framework, one might even be sued for violating the franchise agreement.