Common Mistakes of A Franchisee

There is no doubt that franchising is one of the most popular types of business models right now. This is why many franchising companies are on a pursuit to get the most franchisees to expand their business. It is known that franchising is the easiest way to profit without doing that much marketing.

Since a franchise has already an existing brand, selling the products will be easier compared if you will start from scratch. This is why many are jumping on the bandwagon to avail their franchise thus making them a franchisee of that company.

It is a good decision to become a franchisee but many fall short because of many factors. In this article, we will tackle the common mistakes of a franchisee. This will be beneficial for you if you want to become a franchisee and by staying away from these mistakes, you’ll surely have higher chances of making your franchise a success.

They do not perform any feasibility study on the product

Some people immediately buy a franchise after seeing their advertisement online or on the television. They have no time in checking what the real deal behind that business is, as a result, they just waste their money in buying that franchise.

A good feasibility study will keep you away from that. This is where you will know if the business is profitable or if the company has a nice reputation. So before you, even opt-in buying a franchise from a company, be meticulous in checking all the details.

Wrong Location

For a franchise to succeed, it will need to have the right location, especially for a restaurant franchise in Philippines. You must consider if the location is congested with people that will have an interest in what you are selling. 

For example, you are selling foods then you might want to put your franchise business near a school. This will heighten the chances of students, teachers, and parents buying your products.

Too Much Investment

Some franchises charge too much in fees. This is why many franchisees become broke because of the long ROI that they have to take most especially if the products don’t sell. 

So it is important to know if the investment that you have to make is reasonable enough so that you will not have a hard time getting ROI soonest as possible. This is because after ROI, that’s where you start earning and that is the reality. So always opt into a franchising company that does not charge too much but does not compromise the quality of the products. So, you are required to conduct comprehensive research to explore low cost franchises.

Lack of Effort

It does not mean that if you already have the franchise, everything will be in autopilot. You still have to do work if you want to become successful in that franchise. There is a misconception that a franchise will do the work on its own but that is not the case. 

There is lots of work for you to do still such as ensuring that your products are in tiptop shape. For example, if the franchise is in the food industry then make sure that you cook the foods well and maintain from hygiene in the workplace at all times.

Lack of Idea About that Business

After hearing that a certain franchise is doing good, many people just buy the franchise and expect the result to be the same for them. What they don’t realize is what works for others might not work for them. So just like any other business, you have to determine the ins and outs of it before you enter it.

Lack of Dedication

After seeing that they do not get the results that they wanted, franchisees tend to become demoralized. They do not continue to grind thus accepting the fact that they lost the business. As a result, they just lose their most valued time and money. To prevent this from happening, keep yourself motivated at all times so that you will be one step closer to success.

Not Hiring the Right Person for the Job

If you are a busy person and have another job then most probably you’ll have to hire staff for your franchise. The problem arises when the person that you hire has no prior knowledge of the business. So it is important to take things seriously and train the person first before letting them handle your business.

The Lack of Courage to Experiment

In franchising you have to follow some terms or else it will be terminated. As a result, you’ll not get any refunds or whatsoever thus wasting your hard-earned money. But it does not mean that you do not have to try out new things. As long as it does not break your contract with them, you can try out new things that will boost the sales of your business.

No Plans of Doing Some Marketing Efforts

In a franchise, the brand markets itself. But on the negative side, there are lots of businesses that have the same name as you that is why it is important to have some sort of standpoint on your business.

One way of doing that is by doing some marketing campaigns. It does not mean that it has to be extensive. You just have to let people know the current location of your business to ensure that they are aware that your business is existing. 

You can market them on social media groups that target your area. By joining groups that are specifically made for the residents of your area, you’ll have higher chances of increasing your sales.


Now you know the most common mistakes of a franchisee then what you must do now is to take action. You can only achieve success in the franchise that you have bought by working towards it. Always remember that there is no overnight success, as long as you step your one foot forward every day expect that you will get the progress that you are expecting.

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