Issa Asad Reveals 4 Things to NEVER Do When Opening a Franchise
It’s clear that franchising can be a good way to start up a business, nevertheless, you will discover online a lot of negative reviews concerning people losing capital, their franchise business failing, or more.
“Of course, there are no guarantees but with a little wise thought and examination, it’s possible to minimize the possibility of disappointment as much as possible and do your best to ensure your franchise opportunity is a winner,” said Issa Asad Florida businessman and entrepreneur since 1996. Mr. Asad is the CEO of Q Link Wireless and Quadrant Holdings, located in South Florida. He is also the author of 4 e-commerce and marketing e-books that can be purchased on Amazon.
There seems to be a number of commonly recurring issues so here’s a handful of ways to avoid them. Here, Issa Asad Reveals 4 Things to NEVER Do When Opening a Franchise:
Mistake 1: Not checking the genuineness of the Franchise operator
Do not forget that you’ll likely be giving a substantial amount of money to the franchise operator as start-up ‘franchise fee’ to start your own franchise. In addition to this, you’ll be building a long-term business rapport with them so its vital that you know as much about their background and history as possible. On the internet is really a good way to search for the company and explore its background. It’s also worth investigating the Directors history to find out what other businesses they have been or still are, involved in. Other good sources of company information might be the Companies House website, opening talks with the franchise sections of the main high street banks and also specialist franchise business consultants who might be capable to give you some industry opinion on any franchise business you happen to be considering.
Mistake 2: Not talking to those that are already performing the job!
If you’re buying an item then the most persuasive reviews and recommendations come from friends and others who generously disclose their judgment on it. From this, you can make a well-educated decision of whether you might buy a product. The same is right for a franchise business. Make sure you get a listing of some franchisees from the franchise operator as ‘references’. Get in touch with them and, if possible, plan to get together with them to get a feel for what you’d be doing. They’re likely to be your greatest source of response on how encouraging the franchise operator is and how well the franchise system works for them on each day basis.
Mistake 3: Assuming that a Franchise opportunity carries a warranty!
There can be a sense that since a business is a ‘franchise’ it’s somehow a certain winner. The reality is that you will be the person who decides whether your franchise succeeds or fails. A franchise business is simply a business system that has been proven to generate a profit when it is ‘worked’ correctly. The important thing here is the word ‘worked’. Like any other business, a franchise calls for a lot of hard work and dedication. Ensure you have the complete backup and encouragement of all your family since it requires a lot of time to develop a successful business.
Mistake 4: Not understanding your responsibility to the franchise.
A common mistake is when a new franchise owner doesn’t understand or even has knowledge about their responsibilities to the franchise and may learn the hard way. Before you sign on to any franchise business, understand that there has already been a team of lawyers who have gone through every detail pertaining to that business, protecting the interests of the parent company. They have outlined every step including your role as a franchise owner. There should be no doubt about what you’re buying into. Remember, it’s all spelled out in the contract – that’s why not only should you read the fine print but you should also go over every line of the contract with a qualified attorney.