Below is a list of some of the more common mistakes or misconceptions franchise buyers make when buying and starting a franchise business.
Under capitalization – On average it takes over 2 years for most new franchise businesses to become profitable. Unfortunately many new franchise owners have not put adequate working capital in reserve to weather this crucial initial start-up phase successfully.
Lots Of Hard Work – Many new franchise owners severely underestimate the level of commitment and hours of hard work required to successfully operate a small franchise business today.
Poor Location – A poor location with low visibility and marginal traffic is a tough challenge to overcome for any business to survive including well known franchise concepts.
I Can Hire A Manager – Many new franchise owners are under the mistaken assumption that they can eventually hire a manage to run their business once its opened. Unfortunately this is in most cases just not practical or profitable for the vast majority of single unit franchise locations.