Growing a business to the point of becoming a franchise is no small feat. It no doubt took considerable time, effort, and devotion to scale a profitable business. With this in mind, it is easy for new franchisors to develop a “been there done that” attitude that leaves them unprepared for common obstacles involved in this new expansion. Here are four common franchising obstacles and how to overcome them.

Not Establishing Proper Systems For Growth


Creating systems seems simple when there are only one or two locations to manage especially within the same locale. It becomes a little more difficult when there needs to be an established general formula to help multiple locations. A good rule of thumb would be to analyze what currently works and figure out a way to scale the operation. While it is reasonable to expect a period of trial and error with new locations, this should not be so severe as to cause the new franchises to fail.

Insufficient Funds


It is true that franchisees are expected to provide upfront capital to open their locations, but there are costs that the franchisor must absorb such as hiring lawyers and brand builders. It takes a while to recoup these costs, so having adequate money to fund these expenses upfront and emergency cash until profit is made is important.

Shifting From Business Owner to Franchisor


Becoming a franchisor can be a bit of a shell shock to a business owner. As a franchisor, leading and inspiring take precedence over day to day operations. It is impossible to be everywhere at once, so many franchisors consider creating a team of individuals to help franchisees. This team takes the franchisor’s guidance and helps franchisees hone their management skills and fine tune operations to remain harmonious with the brand and to succeed.

Hiring the Right Individuals


Hiring is a much more difficult process when considering individuals to trust with building and expanding a personal brand without direct oversight. It is important to take the time to find competent individuals that are willing to work hard to succeed, not just the first person with a check. Developing strict hiring criteria and thoroughly checking candidates for positions of leadership is invaluable.