Common franchisee mistakes
Some franchisors will turn you down. So that you know that I know what I’m talking about this article is based on 27 consecutive years recruiting around 2,000 franchisees. So with that in mind what I have to say about you if you are hoping to be offered the franchise you just applied for has some merit. There are a lot of common franchisee mistakes I regularly see. Avoid the common mistakes and you’ll have the best chance to get the franchise you want!
Timekeeping
It feels wrong even listing this one, isn’t it obvious? How can anyone be late for a professional meeting? There’s simply no excuse. However, every so often I find myself sat waiting for someone to turn up. Out of all the common franchisee mistakes, you can make this is one that franchisors hate the most. Me too, there is no good reason not to call ahead. You do have a mobile phone you can use. You probably know an hour beforehand that you’re going to be late too. It’s the height of being disrespectful! Furthermore, it says something about you before a meeting has even happened.
Dress
I’ve met franchisees who are applying for a professional white collar franchise who have rocked up looking like they’re on their day off. Come on people – there’s a place and a time for that and it’s not in a professional meeting. You don’t have to be in a suit these days, but you have to look professional and smart. The franchisor is wondering what your (their) clients might think of you.
Personality
You’re a shrinking violet and you’re applying for a sales role. Really? Do yourself a massive favour and make sure that your personality matches the role. If you’re a brilliant man manager and the franchise needs that then great. But if you have the gravitas of a wet sponge and you’re expected to be a leader of men or women don’t be surprised if the franchisor turns you down. This and other common franchisee mistakes are happening more often than you might think!
Finances
The franchise carries a £57,000 investment and you’re going to need £16,000 working capital. You rock up to the meeting, and you’ve avoided all the common franchisee mistakes above…. you’ve got a CCJ, additionally, you’ve only got £5,000 in savings. NO ONE IS GOING TO TOUCH YOU! Similarly, your unrealistic financial judgement makes you believe you’re going to earn £250,000 in year 1 off a £10,000 franchise. Well, not quite but you get the idea. Franchisors don’t warm to those with unrealistic income expectations.
Legal Negotiations
Driving a hard bargain with the franchisor with the legal isn’t going to help you. That franchise agreement needs to be materially the same for everyone. Lime or it’s clients often progress with a 50/50 franchisee. We are a little unsure of them but tentatively still progress. Then what happens is the franchisee tries to renegotiate every clause in the agreement. It’s not going to happen. This can be the killer strategy for a new franchisee by not understanding the franchisor needs to avoid having different versions of the agreement in force. Also, your conduct now gives the franchisor an insight into what’s around the corner. The franchisor thinks you’re going to be argumentative!
Best endeavours
Franchisors want full-time effort in the main. Sure that work-life balance may exist but don’t expect to be offered the franchise if you’re going to work 4 hours a day. Part-time effort does not yield full-time income. Furthermore, from the franchisor’s point of view, part-time effort yields part-time royalty.
References
Taking references from other franchisees before meeting a franchisor is usually frowned upon. So before meeting the franchisors executive team or recruitment manager, by all means, do your research but don’t bother the trading franchisees until you’ve met the HQ representatives. You might be turned down or decide not to progress yourself. So ringing trading franchisees now just wastes peoples time.
Speak to a lime professional and we’ll help you to find the franchise that suits you the best. There are over a thousand franchise systems in the UK. Our advice comes free of charge.