“Look out for the ‘Five Deadly Sins’ of franchising…” Article by Steve Marsten

At Sothertons, we see many business owners seek the comfort of a Franchise as a means to get ahead. Only to find that there are certain things they can and cannot do. There have been numerous studies carried out highlighting the main issues associated with franchises and the importance of the Franchisor and Franchisee relationship. We call these the five deadly sins.

The first is the Blame Game. We as humans have this amazing ability to interpret events to suit our own interests. As an example – we like to take credit when things go well and similarly we like to blame others if things don’t work out – like the Franchisor! Liaising with the Franchisor during both good and tough times is extremely important.

The Attack of the Slacks. One thing that seems to really annoy Franchisor staff is an outlet that’s allowed to look run down due to a lack of effort by the franchisee. From the franchisors point of view, letting the standards drop gives every operator a bad name not just the poorly maintained outlet.

Update oversight. Franchisor staff often take irate calls from franchisees over changes in policies and standards with the usual question screamed down the phone “Why wasn’t I told?!!!” Many Franchisors issue their changes via a regular email bulletin and often owners just don’t take time to read them.

The Klingon Reaction. Some franchisees struggle to appreciate changes to systems and policies proposed by the Franchisor. The initial reaction is – That won’t work! So they don’t give thought or time to assessing the merits of the changes. Instead they become reluctant participants and to some extent sabotage their own businesses. Changes are necessary in all businesses to stay relevant.

And Finally the Frank Sinatra Syndrome which we tend to see a lot of - yes – “I did it my way!” maybe a song that Franchisors like to sing but it is not the tune that franchisees love to hear. Experimenting with a franchisors business concept will often get you into hot water without consultation.

Open communication with a Franchisor is extremely important for the success of the Franchisee. If this is an issue then consider not going down the path of a Franchise in the first place. We at Sothertons often guide business owners carefully in selecting the best Franchise or business that suits their objectives. Call 07 4972 1300 for a consultation.