fran·chis·ing \ fran-chī-z-ing \verb
1. The right to sell a company’s goods or services in a particular area 2. Covering the bases with Paul Segreto
Franchise Success by Avoiding Common Mistakes
M
istakes are a part of life. However, learning from mistakes is part of life, too. But if you could learn from the mistakes of others rather than your own, wouldn’t you want to? There are some common mistakes individuals make when exploring and investing in a franchise, and they’re easy to avoid. Here’s a few to watch out for, so you can improve your chances of success in your new business. MISTAKE 1: NOT LEARNING ABOUT LIFE AS A FRANCHISEE Sure you have good instincts, but when investing in a franchise, relying solely on your instincts is not necessarily the best decision. Rather than just trusting your instincts, which could land you in hot water with your franchisor, landlord, or tenant, choose to learn all you can before you finalize any agreement. That said, always trust your gut and dig into what may be giving you a bad feeling. Talk with other franchisees. Ask them to share with you a day in 32
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the life of a franchisee. Also, speak with other tenants in the shopping center where you’re considering a lease. For both parties, ask whether they would do it again. Knowledge is power. By learning from a leader within the franchise organization—as well as doing your own thorough research before you dive in—you are setting yourself (and your franchise) up for success. Ask franchisees how issues and disagreements have been addressed in the past. Ditto for tenants. MISTAKE 2: RUSHING YOUR DUE DILIGENCE Slow and steady can win the race, even in franchising. While you might be eager to get started as soon as possible, there may be moments where more time—and patience—is prudent. For example, when choosing a location for your business, never allow yourself to be in such a rush that you choose a bad location or fail to negotiate. You want not only the best rate per square foot, but also
