In my 20 years as a Franchise Consultant, I’ve seen some really smart people walk away from some really good opportunities! I’m going to share with you, from my experience, the Top 10 Reasons People Walk Away From a Franchise Opportunity.
1: They Can’t Afford It.
The number one reason I see people walk away from a franchise opportunity is because they determined they cannot afford it. Maybe they didn’t qualify for the loan they thought they were going to get, or more than likely during their due diligence, when they were validating with other franchise owners, they saw how long it was going to take to positively cash flow, and that did not meet their expectations.
2: It’s Too Much Work.
Many people have the false belief that a franchise is plug and play because it’s a proven business with a proven plan. They have an expectation that during their due diligence proved to be wrong.
3: A Lack of Leadership.
Sometimes it’s the case that the franchisor’s process didn’t inspire confidence, and that can lead to the candidate feeling a lack of confidence in the opportunity.
4: The Territory Doesn’t Work.
Often, I see candidates questioning the viability of their territory or the open territory that they would be moving their business into. My response: It is not in a franchisor’s best interest to award a territory that does not work!
5: They Are Too Entrepreneurial.
There are some candidates that I work with that after going through the entire process, find that they love inventing, they love creating, they’re not really interested in following that proven process. They start to question all the fees. They start to question all the systems. And in questioning all of these things, they come to realize they are not suited to be a franchise owner.
6: An Unsupportive Spouse.
It can be hard for two people to come together and agree that this opportunity is the right opportunity for their future goals. Some people are more conservative and some people are more adventurous. A good Franchise Consultant can probably help that couple get to the same place so they can say “yes” to the business.
7: Unsupportive Advisors, Family, or Friends.
When it’s your dream to own a business, my advice to you is this: Don’t go telling the entire world what you want to do! I’ve seen so many dreams stolen by well-intentioned advisors, family and friends simply because they haven’t gone through the process that you’ve gone through, in order to feel confident that this is the right business.
8: Turned Down by the Franchisor.
Franchises are awarded, not sold. So it’s a mutual evaluation process where you get to learn about the opportunity and the franchisor gets to learn about you. But ultimately, it’s the franchise owner’s opportunity to award to you before it’s your business to buy.
9: They Can’t Get Financing.
Not everybody qualifies for financing. And if you’re out trying to shop alone on your own at your local bank, that can be a black hole! There are specialized lending groups who all they do is help fund franchise businesses. A good Franchise Consultant will have resources like this available to help, you know, early on in your process, if you will, qualify for franchise lending.
10: Fear.
Fear is definitely the greatest dream killer. In my 20 years of Franchise Consultant history, I don’t think I’ve worked with one candidate who hasn’t exhibited some amount of anxiety or fear at some point in the process! But really, that’s the value of a good Franchise Consultant: Helping to identify where fear or assumptions or false expectations can be turned into questions, and then brought back into a positive due diligence experience. In the end, it’s up to a candidate to really manage their own anxiety and fear… But managing fear is where a great Franchise Consultant can truly earn their value!
Are you ready to begin your own franchise exploratory process with an experienced Franchise Consultant so that you don’t fall into some of these Top 10 reasons why people won’t move forward? If you are, please leave me a comment below or email me now! https://thedalycoach.com/contact
