The Top Jaw-dropping Challenges Faced by Franchisees

By October 29, 2020 June 1st, 2023 Small Business Planning

Last Updated on June 1, 2023 by Dave Schoenbeck

For many entrepreneurs, buying a franchise seems like a lucrative career opportunity. You gain all the advantages of owning your own business while relying on an already-established brand name to mitigate some of the usual pitfalls of starting a company.

However, it’s also essential to acknowledge that franchisees face genuine challenges.

Often, unhappy franchisees realize too late that buying a franchise isn’t easy. So here’s what you need to know before you jump in. 

A franchisee pushing a challenging boulder up a steep hill

Common Franchisee Problems

Although every franchisee will encounter obstacles sooner or later, franchisees can avoid them through preparation. A few of the most common challenges faced by franchisees are:

  • The franchisee is not prepared enough or competent to implement the franchisor’s master plan due to skill level or insufficient training from the franchise.
  • The franchisee does not have a strong business background and lacks experience.
  • The franchisee is not execution-oriented and is a poor behavioral fit for a system-oriented, top-down business.
  • The franchisee ignores the franchisor’s proven system and thinks they can do everything better.
  • The franchisor did not fully develop the operating system to ensure success, and the franchisee is left to make it up alone without the knowledge needed to do so successfully.
  • The franchisee is undercapitalized or cash-poor and can’t make the monthly investments necessary to grow the business.
  • The franchisee naively underestimates the hard work that all new businesses demand.
  • The franchisee buys a franchise for the wrong reasons. They’re too focused on being the boss, getting rich quickly, escaping the system, or finding a better work-life balance. When these things don’t happen immediately or solve all their problems, they give up.

Overcoming Franchisee Problems

Do any of the above problems sound like something you might face? If so, don’t worry. You can overcome the usual challenges franchisees face and turn your franchise into a profitable venture. 

First of all, a good franchisee must be a good leader. Operating a franchise requires the same skills as running an independent business. So invest in developing your leadership skills and becoming a good manager. You can’t succeed without a strong team that you can rely on. 

Second, you need to have the right attitude. Many franchisees get into the business because they want to be their boss, but you will still need to defer to the parent company, which doesn’t allow for the kind of independence some envision. Stay humble and accept that the franchisor has sufficient knowledge of its own business. 

Finally, you can avoid franchisees’ common challenges through good business sense. Take classes on financial literacy and other essential aspects of running a business to give you the tools to weather the worst storms. 

Many franchisees struggle to overcome the usual challenges they face on their own. If you have bought a franchise and are not getting the expected results, you need a business coach to help put you on the right path. Please fill out my contact form, and let’s schedule a time to create a plan for your success.

Coach Dave


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