It is no secret that business can be tough. Franchises are continually facing issue after issue and how franchises – both the franchisor and franchisee – face their challenges can determine whether they will succeed or fail.

There are however, some indicators that can be early signs a franchise is headed for failure. Identifying and rectifying these in time could save the business.

1.           Doomed from the start

Set up issues – poor franchise recruitment  practice, “If it’s warm and has a  cheque, sign it up!” and details of how the franchise network is intendedto operate are missing.


2.           Failure to keep working at it

Focus on start-up/franchisee recruitment without attention to continual improvement of the model. The franchise network is viewed as a secondary channel with devotion of less time and resources.


3.           Franchisee boredom

Establishing a model that fails to keep franchisees motivated, leading to a loss of talent.


4.           Too old, too tired

The franchise network has reached the end of the line in its lifecycle from launch, growth maturity and decline.


5.           The vision is gone

Franchisee’s must believe in the brand and the business model. Ultimately, they must believe in the vision of the brand. In the absence of a clear business vision from the franchisor, franchisees will soon be gone.


6.           We don’t talk anymore

Successful franchises are all about interdependence. When communication breaks down, so does the franchisor and franchisee relationship.


7.           Disagreements – Get over it!

There is nothing that cannot be solved by discussion and negotiation. The trick is, the participants have got to want to solve the problem.


8.           Training? What training?

Franchisees must have confidence in dealing with the franchisor’s products and processes. More importantly, this sense of confidence must be immediately obvious to any customer the moment they walk into the store.


9.           I know the customer best

Franchisors and franchisees who go into battle with each other over who knows best about the marketplace, are on a slippery slope. Successful franchise networks view market research analysis as a partnership and not a contest.


10.      Franchising will solve our business’s problems – wont it?

If the business is fundamentally flawed, then franchising will not solve anything, in fact, chances are it’ll make things worse.