You have decided to become a franchisee. Your success depends on choosing the right franchisor who will provide the support you need. Without adequate and ongoing franchisor support, many franchises fail. The National Franchise Association reports lack of franchisor support as one of the top reasons of franchise failure. This article explores how insufficient training, lack of marketing assistance, poor communication, and inadequate field support from franchisors negatively impact franchisees and contribute to reasons of franchise failure. Understanding these common pitfalls can help you select a franchisor who will set your franchise up for success.

The Importance of Franchisor Support for Franchisees

Training and Resources

As a franchisee, you rely heavily on franchisor support to provide the necessary training and resources to operate the business. Insufficient training in daily operations, marketing, customer service, and other key areas will severely impact your ability to succeed. The franchisor should offer initial training as well as continuing education. They should also provide useful resources like operating manuals, marketing materials, and access to key vendors. If the franchisor fails to adequately prepare franchisees to run the business, the franchise units are much more likely to underperform or fail.

Communication and Feedback

Franchisors need to maintain open lines of communication with franchisees and provide constructive feedback. Without clear communication, franchisees may feel isolated and ill-equipped to address issues that arise. The franchisor should share best practices from top-performing franchise units and address questions franchisees may have about operations, marketing, customer service, and more. They should also conduct inspections of franchise units and provide feedback on how franchisees can improve. Lack of franchisor support including communication and feedback often leads to dissatisfaction and higher failure rates among franchisees.

Ongoing Support

Franchising is an ongoing partnership that requires continuous support from the franchisor. If the franchisor takes an absentee approach after the initial franchise sale and training, franchisees will struggle. The franchisor needs to provide marketing support, updates to operations, new training programs, and a way for franchisees to connect with one another. They should also have field staff that visit franchise locations regularly to identify any issues and provide recommendations to improve performance. With a lack of franchisor support, franchise units are much more likely to underperform and close, ultimately hurting both parties.

Common Areas Where Franchisors Fail to Provide Adequate Support

Lack of Initial Training

When you purchase a franchise, you expect the franchisor to provide comprehensive initial training to set you up for success. However, some franchisors fail to offer training that fully prepares new franchisees to operate the business. Without adequate initial training, you may struggle with day-to-day operations, reducing your chances of success.

Insufficient Marketing Guidance

Another reason many franchises fail is the lack of franchisor support in marketing guidance. While the franchisor likely has extensive experience promoting the brand, individual franchisees often have little experience with marketing. Without advice on local store marketing, social media, websites, and more, franchisees may struggle to attract new customers and increase sales.

Insufficient Ongoing Support

After initial training, franchisors should continue offering support to franchisees. This includes providing up-to-date resources, ongoing education, and addressing issues that arise. Some franchisors, though, fail to provide this level of ongoing support. They remain largely unresponsive after the initial franchise fee has been paid. As a result, franchisees may find themselves without guidance to navigate challenges or access to tools needed to improve operations.

Limited Marketing Support

Successful franchises require coordinated national and local marketing. The franchisor is responsible for national marketing to build brand awareness, while franchisees focus on local marketing. Without the franchisor support and resources for marketing, individual franchisees are left to fend for themselves and struggle to build recognition and gain new customers.

Poor Communication

Open communication is key to a successful franchisor-franchisee relationship. Some franchisors fail to maintain open lines of communication, making themselves difficult to reach and unresponsive to franchisee concerns. Breakdowns in communication mean that issues may go unaddressed and resources/changes are not shared with franchisees in a timely manner. This lack of communication damages the franchisor-franchisee relationship and undermines franchisee success.

Consequences of Insufficient Franchisor Assistance From Franchisors

Lack of Knowledge and Skills

Without proper training and support from franchisors, franchisees may lack the necessary knowledge and skills to operate their franchise successfully. According to the National Franchise Association, franchisors should provide initial training on all aspects of running the business as well as ongoing support and guidance. If franchisors fail to offer comprehensive training programs and resources for their franchisees, the franchisees may struggle with daily operations and key business functions.

Higher chance of Failure

The lack of knowledge and skills due to insufficient training and franchisor assistance can ultimately lead to higher failure rates for franchises. About 30% of new franchises fail within the first two years. However, with adequate training and support from franchisors, franchisees have a higher likelihood of success. Franchisors should aim to set their franchisees up for success by equipping them with the tools and resources they need to thrive.

Damage to Brand Image

When individual franchises struggle or fail due to lack of franchisor support, it can reflect poorly on the brand and damage its image. Customers expect consistency across locations of the same franchise brand. If certain locations offer poor service or products due to the franchisees' lack of training, it can negatively impact the brand and decrease customer loyalty. To maintain brand standards and customer satisfaction, franchisors must provide sufficient guidance and resources for all franchise locations.

Conclusion

As a franchisee, it is critical to take advantage of available resources to help your business thrive. One of the most useful organizations is the National Franchise Association (NFA), which provides education, advocacy, and networking opportunities for franchisees, from online courses to in-person events. Franchisees can take courses on operations, marketing, human resources, and financial management.

Ultimately, it is essential for franchisors to provide adequate support to their franchisees. Without proper franchisor assistance and guidance, many franchises are destined to fail. Stay informed through resources like the National Franchise Association to understand the common pitfalls that become reasons of franchise failure. With proper preparation and ongoing support, both franchisors and franchisees can thrive. We all have a role to play in setting franchises up for success