6 Challenges Every Franchisee Will Face at Some Point in Their Career

Published on Jan 27, 2016

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PRESENTATION OUTLINE

6 Challenges Every Franchisee Will Face at Some Point in Their Career

Buying a franchise and managing it until it grows and prospers is more than a job to those who choose to engage in this endeavor; it is a chance to put their entrepreneurial spirit to work, create job opportunities for others and provide a valuable service to the local community.

It is also a chance to join hands with an already-proven business enterprise and do your part to build it bigger and better. In reality, franchising is like any other business venture: full of great promise, but also riddled with significant challenges. Here are six challenges everyone who commits to buying a franchise will almost certainly eventually face.

Topics of Discussion

  • The Cost of Buying a Franchise
  • The Approval Process
  • The Learning Curve
  • Patience Amid Business Ups and Downs
  • Learning to Lean on Others
  • Finding That “Work/Life Balance”

1. First, there are the startup costs, which are much lower than for non-franchise businesses, but still quite substantial. For example, to open a new Pretzelmaker location, you need to have a net worth of $250,000 and $100,000 in liquid assets. You also may need to invest anywhere from $210,000 to $335,000, the amount varying greatly by store size and location.

2. With each new franchise you start, the process gets more familiar, and thus easier, but each new location requires a good deal of paperwork. There is the application, the meetings with HQ and with current franchisees, the writing up of a detailed business plan and the review of the FDD (Franchise Disclosure Document). For Pretzelmaker, this process can take 30 to 90 days, and this is typical of most franchises.

3. It will take significant time and effort to research all relevant data concerning your new franchise, and it will take further learning commitments to adapt to the specific manner in which the franchise is to be run. With franchises, there is a preexisting system that must be followed, to one degree or another, as specified in the franchise contract you signed. However, all franchises provide help in getting you past this “learning curve.”

Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.