Any person thinking that they can get into Franchising as a way of exiting business and having complete passive income should think again.
This rule applies to both potential Franchisors and Franchisees alike.
Some potential franchisees imagine that because they are buying into an established, systemised business, that their business will thrive with little effort from them personally. Conversely, they believe that as they will have huge support from The Franchisor it will result in less personal effort. It doesn't quite work this way.
Every business needs input and effort.
A good business system certainly may allow the franchisee to spend more time working on the business rather than in the business. However a franchise that is able to be run by managers alone from day one of a start up business with minimal franchisee input is rare.
Franchisees should recognise that being a Franchisee does not allow them an abdication of duty as a business owner.
As a new Franchisor it will take;
Future planning can of course incorporate the recruitment of franchisee relationship managers, which will certainly reduce the day to day workload of The Franchisor.
Appointing Master franchisees into the business is another method of allowing a Franchisor to take a step back from the day to day running of the business.
Effective time management and delegation will also assist in reducing Franchisor involvement. All of these delegation initiatives can and should be introduced, but realistically, only when the network can financially justify the extra costs involved.
The lesson here is to fully research franchising as a business model before jumping in blindly.
Are you suited to being a franchisee or a franchisee? Speak to someone who knows the industry inside out who can explain the reality of franchising and not a pipedream.
If education is too late and you're already involved in Franchising and wishing that you weren't. get out quickly and sell.. whilst you still have a business.
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