Reasons Franchises Fail

After spending hours upon hours researching, planning and setting things up, the last thing you want is to discover that your franchise doesn't have what it takes to remain up and running. With so much time and money dedicated to what you hoped would be your professional future, it sure would be disappointing to be told you're about to go out of business.

But the real question here is why? Why would my franchise fail? While your business might be growing at an exponential rate right now, there are several reasons why franchises come crumbling down, according to franchise experts. To provide a bit more insight into the industry, we've put together a few of these reasons below:

1. Skill set: When you or members of your team lack the skills needed to excel in the professional world, it won't be long before things take an unexpected turn.

2. Preparedness: When diving head first into a franchise, you need to be prepared (and willing) to stick with it. Owning a franchise is a lot easier said than done, so be sure you understand the commitment that is required on your end from the start.

3. Location: Sometimes the largest or most affordable location is not the right location. Unless there are potential customers in your region looking for your product or service, it will be difficult to get people to walk through the door.

4. Support: If the franchisor fails to provide the support franchisees are looking for, do you think they will be able to stand on their own? Maybe down the road, but most likely not in the beginning. As a note to potential franchisees - make sure you seek out a franchise where support from upper executives is strong and ongoing!

5. Money: Not being able to keep up with the costs of rent, products, employee salaries and franchise fees will put your promising future far out of reach.

If you're looking to become a leading franchise owner in your industry, be sure to steer clear of these avoidable mistakes. Prior to signing any agreements, we suggest using these key areas as a checklist to help you determine if franchising is the answer for you.

Now, have you determined that you're ready to get started? If you're in the process of researching franchise opportunities, don't forget to consider bluefrog Plumbing + Drain. We are the newest national plumbing franchise network and we're already making a splash! For more information on the opportunities we offer, please give us a call at 888-490-9850.

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