Although it is expected to have some expertise in franchising before franchising a concept, many emerging franchisors think that franchising is some type of DIY business. The fact that you can now find affordable templates for UFOCs, franchise agreements, operation manuals and many other franchise related documents make the franchising process appear like an easy “fill in the blanks” project.
First time franchisors are usually successful entrepreneurs who think that since they were able to be successful to run their business, they will be successful franchisors. It’s only after a few costly mistakes that the young franchisor will realize that franchising is not just an extension of his business but is a complex process that requires skills to succeed.
New franchisors usually start with a small staff, if any! Employees are given new responsibilities to handle the franchising side of the business but they are usually not trained to fulfill the demands of franchising. When the franchisor finally realizes that knowledge and expertise are necessary to run a successful franchise company, it’s sometimes too late…