Business Mentor: Challenges faced by franchisees | ABS-CBN
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Business Mentor: Challenges faced by franchisees
Business Mentor: Challenges faced by franchisees
Armando Bartolome
Published Jul 16, 2022 08:09 AM PHT

While it is easier to start a franchise business than starting a business from scratch, entrepreneurs who become franchisees will still face many challenges.
While it is easier to start a franchise business than starting a business from scratch, entrepreneurs who become franchisees will still face many challenges.
Just like any new business, the franchisee needs to put a lot of work into it as well.
Some of these are:
Just like any new business, the franchisee needs to put a lot of work into it as well.
Some of these are:
1. Difficulty in getting the business off the ground
1. Difficulty in getting the business off the ground
First, you need to ask yourself if you are ready to start a business. You should know that the company you choose is something you can commit to 100 percent. You should not be overwhelmed with the tremendous tasks of being a new entrepreneur since you can always seek the help of your family and to hire employees. Similarly, as a franchisee, you are not left on your own to start the business. The franchisor will provide the training needed and other resources to help you in your day-to-day management to ensure that the company runs smoothly.
First, you need to ask yourself if you are ready to start a business. You should know that the company you choose is something you can commit to 100 percent. You should not be overwhelmed with the tremendous tasks of being a new entrepreneur since you can always seek the help of your family and to hire employees. Similarly, as a franchisee, you are not left on your own to start the business. The franchisor will provide the training needed and other resources to help you in your day-to-day management to ensure that the company runs smoothly.
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2. Reduced decision-making power
2. Reduced decision-making power
As the franchise owner, you must follow the franchisor as there should be uniformity across all franchisees' stores/shops. In a restaurant franchise business, you cannot use an alternative ingredient that may affect the taste of your food.
As the franchise owner, you must follow the franchisor as there should be uniformity across all franchisees' stores/shops. In a restaurant franchise business, you cannot use an alternative ingredient that may affect the taste of your food.
3. Reduced brand control
3. Reduced brand control
There may be instances when a particular branch of a franchise business undergoes some challenging situation that could hurt the entire brand's reputation. A slip-up can affect the entire franchise network. Although you can be affected personally by these instances, you should maintain the quality of service you provide, and assure your customers that it is not your store involved in such situations. Set a high standard in providing the service your customers rightfully deserve.
There may be instances when a particular branch of a franchise business undergoes some challenging situation that could hurt the entire brand's reputation. A slip-up can affect the entire franchise network. Although you can be affected personally by these instances, you should maintain the quality of service you provide, and assure your customers that it is not your store involved in such situations. Set a high standard in providing the service your customers rightfully deserve.
4. High employee turnover
4. High employee turnover
Employees may be too overwhelmed with their work that some opt to look for another company. A franchisee should carefully choose the employees by looking into the skills of each employee. Franchise owners could provide a retention program that encourages employees to do their best at all times. Provide the necessary training and motivate each employee by ensuring they know their tasks. When employees are aware of the value of their work, they likely remain loyal to the company and job satisfaction will rise.
Employees may be too overwhelmed with their work that some opt to look for another company. A franchisee should carefully choose the employees by looking into the skills of each employee. Franchise owners could provide a retention program that encourages employees to do their best at all times. Provide the necessary training and motivate each employee by ensuring they know their tasks. When employees are aware of the value of their work, they likely remain loyal to the company and job satisfaction will rise.
5. Market saturation
5. Market saturation
If you have a target brand in mind, you should conduct a feasibility study to ensure that it is not already operating in the area where you want to set up. The store site should not be a street away from another branch offering the same products and services as this would only divide each branch's sales. Strategically choose a location where you think your business can rise and enjoy success for as long as possible.
If you have a target brand in mind, you should conduct a feasibility study to ensure that it is not already operating in the area where you want to set up. The store site should not be a street away from another branch offering the same products and services as this would only divide each branch's sales. Strategically choose a location where you think your business can rise and enjoy success for as long as possible.
Evaluate your local marketplace with these three:
- Suitability of the business model in the area
- Competitors
- Overall customer base for the products/services
Evaluate your local marketplace with these three:
- Suitability of the business model in the area
- Competitors
- Overall customer base for the products/services
Owning a franchise is a huge commitment. Yes, it has risks, but it can save you a lot of the capital and work needed compared to starting your own brand.
Owning a franchise is a huge commitment. Yes, it has risks, but it can save you a lot of the capital and work needed compared to starting your own brand.
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For questions and more information, you may contact Armando "Butz" Bartolome
by email: business.mentor@butzbartolome.com
FB Page: Butz Bartolome
website: https://www.butzbartolome.com
For questions and more information, you may contact Armando "Butz" Bartolome
by email: business.mentor@butzbartolome.com
FB Page: Butz Bartolome
website: https://www.butzbartolome.com
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