In my humble opinion, one of the major impediments to making informed
franchise decisions is the franchise industry’s unwillingness to acknowledge,
much less autopsy, its franchise casualties. Most prefer to perpetuate the myth
( lie) that there are nearly no franchise failures; contentions to the contrary
are met with hostility. But the truth is that franchising is no magic carpet to
Successland, and treating it as such is not only bad for the prospective
franchisees being told only need to pay up, show up and shut up to be
successful, but is bad for franchising itself.
The website UnhappyFranchisee.com
is trying to change that. The only site of its kind, UnhappyFranchisee.com an
interactive site where franchisees who made franchise purchasing mistakes share
what they did wrong, what the consequences were, and what prospective franchise
owners should do to avoid the painful lessons they’ve endured.
What mistakes did you make?
“I should never have gone into a new concept franchise that didn’t have an
established track record.” Jeff
“Signing on the dotted line too soon. [I should] have waited to sign for the
additional clubs until after the first one was successful.” Julie
One of the most common mistakes franchise buyers make is buying into a
franchise concept or company that does not have an established, successful track
record. Jeff Marks & Julie Franco admit to buying into a 30-Minute women’s
fitness franchise with no real operating history in the marketplace. The major
flaws of the concept – getting women to renew after their first year – was not
yet apparent as the concept was brand new. Remember, in franchising you’re
paying a premium for a proven system. Make sure that the system is passed the
test of time in the marketplace.
Sean Kelly is a 20 year veteran of the franchise industry, and founder of the
award-winning marketing firm IdeaFarm. In 2006, he founded the FranBest franchise networkbest franchise opportunities, the top new franchises, franchise marketing, franchise public relations and small business marketing. Contact
him at seankelly[at]ideafarm.net.