What are the main reasons why franchisors fail?
The most serious reason is a lack of knowledge. Many franchisors not taking professional advice and guidance believe that the most important activity is the recruitment of franchisees. They quickly discover that they have not only recruited the wrong type of people, but the package that they were offering to them was not well thought through and totally inappropriate. Another reason is lack of funding. Even if a company were to do everything itself it is looking at between £30,000 to £50,000 to successfully franchise the business. Rather than create operational and training manuals, legal agreements, franchisee recruitment brochures, advertisements and editorial campaigns and 101 other things itself, it is far better to use the most appropriate professional adviser. They can often save a franchisor a great deal of money as well as underwrite the results that are expected. Finally, successful franchising takes time. It is far better to recruit the first wave of franchisees and then get
