Ten Reasons For Franchise Failure

Many people have a certain amount of work after a long period of work.

1, the motivation of joining is biased.

No longer excellent chain system can guarantee that all franchisees can manage one hundred percent businesses successfully.

Take Mosburger in Japan for example, the Japanese are quite proud of their high success rate of 95%, but even so, there is a 5% failure rate.

The company chose the 1000 recruits from one year, and only 5% of them concluded the contract, that is, 50 people.

Although these 50 people have strong entrepreneurial intentions and have the same business philosophy as the head office, the final result is only 95% success rate.

From many foreign failures, we can see that the most important reason for failure is the biased motivation of joining.

Once you join, you can lie down and do nothing. Everything is managed by headquarters.

The chain headquarters has a number of achievements that have been successful in its operation. However, an example of its successful operation by others (including headquarters and franchiser) does not mean that the operation will be successful locally by you and headquarter.

It must be borne in mind that headquarters and franchisees are two entirely different businesses. What the headquarters provides (Sales) to you is only a set of franchise operations. You must follow the experience and guidance to implement it step by step and effectively, so that you can succeed.

2, when joining the capital scheduling disorder

As a result of being eager to start a business, some of the franchisees do not hesitate to take advantage of loan sharks, royalties and fees.

Once the shop is open, although the business is still smooth, but every day in order to raise money to pay debts, it has no intention to fully invest in the operation of the business.

It should have been a leader in the army who would leave the front line due to the dispatch of funds, and other employees in the store would be affected immediately, so the service quality would gradually decline.

Customers are also sensitive, and slowly will gradually stay away from the store. Of course, the performance can not be further promoted. The shops that were originally good businesses often dragged down the whole business because of usury.

3, did not make detailed investigation before joining

Examples of such failures are rare.

Some of the franchisees do not know clearly about the chain headquarters that they will join. They always think they will join in first. Later, if there is a problem, the headquarters will naturally help to solve it.

As a result, after the opening of the store, there was no guidance for any business headquarters. There was no reply to the headquarters contact.

Specifically, there are mainly several types:

1) lack of basic knowledge of franchising.

Because there is no such knowledge, only in the relevant newspapers and magazines to see advertisements, call the past, after listening to each other's simple and heartfelt instructions, hurried to join.

It never occurred to me that joining so much capital and having so many bondage greatly reduced the enthusiasm of the work.

All this is due to the lack of knowledge about franchise.

This combination of misunderstanding will eventually lead to "breaking up because of knowledge."

2) only know that the industry is good, but did not investigate the same industry.

At the beginning, I only saw the attractive conditions of the advertisement. I saw a beautiful company catalog and joined it in a hurry. However, I did not know that after entering the industry, there were more excellent enterprises in the same industry, more favourable conditions of joining and support guidance, and wanted to quit, but there was no way out because of "breaking the contract".

3). Visit only profitable shops but fail to shop more.

Before joining the company, although they also followed the advice of experts, they learned what kind of business the head office was doing. They also looked at how the franchisee managed, but general headquarters only took you to see a well run store and conceal unprofitable shops.

Only after joining, did I know that there were so many shops that did not make money while struggling.

In addition, visiting the successful shops is all about how to relax easily and how to make a miserable start at the beginning of the store. However, it seldom mentioned that people have a false impression that success is just as long as they join.

4) did not visit the head office before joining, nor did they see the head of the headquarters.

At that time, he proposed the wish to visit the head office, though the other side did not refuse, but it was far away from the distance, time and money were not economically shields.

Until joining the league, listen to other franchisees mentioned, only to know that the original company is simple, so I knew it would not be so hastily joined.

5). I have never met with the boss of the company.

Despite the request, he was told that the company is busy recruiting all over the country because of its recruitment of franchisees all over the country. Sooner or later, it will meet sooner or later.

As a result, on the day of opening up, the boss finally appeared and hurriedly walked away and talked with him. Only then did he realize that the boss was a man of few ideals and aspirations. In fact, he was at most a speculator.

4, not careful before signing the contract.

Many of the franchisees before signing the contract, or because the conditions of the contract are more favorable, or because they are afraid of being promoted to the top, or think that early joining can save the joining money. If the content of the contract is not fully understood, or because the contents of the contract are too complicated and too lazy to understand, it will be signed and sealed hastily on the contract.

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5, do not work hard to blame the headquarters.

Though a franchisee's boss, he does not want to do business in person.

Spending money to hire a store manager is not enough, but you want the manager to work for you from morning till night.

In addition, he did not make considerable investment and poor business performance, but blamed the headquarters for ineffective guidance. There was no practical know-how and method.

In fact, the franchisee and the headquarters are the community of fate, and the success of the business requires both sides to make considerable efforts.

If the franchisee thinks he is the boss of money and investment, it will be too true for the head office to make money for you.

"The competition shop of peers has already appeared in this area, but headquarters has no countermeasures at all." the site environment has changed, but the headquarters has not taught a way to deal with it.

It is true that the objective environment has changed, but do you also reflect in time with your headquarters, plus your observation? It is always doomed to fail if you do not make relative efforts.

6. Overconfidence in your business ability.

Chain headquarters provide franchisees' franchised business portfolios, which are not protected by law as ordinary patents. Therefore, it is difficult to relate to value.

That is to say, the names, products and trust of customers provided by headquarters can hardly be measured by a standard yardstick.

The strength and know-how of the whole chain system are hard to see with the naked eye on the first line shops.

And it is difficult to determine the effectiveness of the franchise portfolio behind the success of the business.

Many of the franchisees made such a mistake: although they had received many help from the headquarters at the beginning of the shop, they neglected this point because of their hard work at the time. Once the performance was stable, they thought they were the fruits of their efforts. The so-called secrets and practical guidance of the headquarters had long been thrown away, and they thought that without headquarters, they could rely on their own strength.

As a result, the guidance of headquarters was reluctant to accept, and the headquarters orders were not willing to be executed, which did not match the promotion plans at headquarters.

Due to overconfidence, the franchisee gradually left the headquarters and failed.

7, join the owner of another business

When the franchisees opened their stores, they worked hard according to the guidance of the headquarters, and their businesses prospered. The initial investment was recovered, so they began to look for other opportunities to make money.

Unfortunately, the new business didn't get the hang of it, so that all the money that came from it was lost, and the original store failed because of its inability to face both sides, resulting in a failure due to the inability of capital to turn around.

8, too fond of putting on airs.

Some of the franchisees used to be office workers. "Many years ago, wives and wives become old wives". They always think that when they become their own boss, they must show the prestige of their bosses. For every employee's work, they must interfere with their work blindly, but do not know how to empower them, causing employees to feel depressed and influence their business performance.

9, change the operation rules without authorization.

Once some franchisees are familiar with the operation of the whole store, they will feel that some of the headquarters's operational provisions are not reasonable. If they are put forward to headquarters based on goodwill, the headquarters will be happy to accept them.

But if it is self assertion, there will be problems.

Especially in the case of goods sold in their own stores, if the change of manufacturing methods, or the time to change the processing time, or the order of changing the operations, so that all the provisions of the headquarters are ignored or not implemented, then the franchisee has actually lost the support of the headquarters, and has become a solitary force.

The various operating rules of headquarters must have their own strong characteristics. Without authorization, they lose their characteristics, especially in terms of quality.

Once the quality is unstable, once the characteristic is lost, the customer is very sensitive, and slowly away.

10, not the family's concerted efforts.

First of all, the franchising business must get the consent and support from the other half. If you can get the family's consent, including parents, wives and children, it will be better, because once these things happen, these people are your backup forces, and will play the role of "help".

However, some of the investors who joined the family were still desperate to join the family. They thought that as long as the headquarters was strong enough, it would be bad for a person to do so.

However, because of the opposition from the family at the very beginning, the relationship with the family would be bad. It would affect the mood, and this kind of emotion would often be reflected in the store, or when the family members were not enough, the family would not help, or sometimes they wanted to leave temporarily, but could not find someone to take over and become a "lonely person".

In addition, because the boss is really busy, he neglects many details, such as cleanliness and hygiene, and so on, which affects the operation of the store.

As the saying goes, "home and prosperity", "harmony brings wealth" is indeed very important.

This is why many of the world's convenience stores are asking for franchisees to be a pair instead of one person.

"Husband and wife cooperation and co operation" is a magic weapon for the success of store operation.