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What challenges do franchisees face?

2 min read

Restaurant and Foodservice

SmartPulse — our weekly reader poll in SmartBrief on Restaurants — tracks feedback from restaurant owners and managers about current trends and issues.

Last week’s poll question: What is the greatest challenge of franchising?

  • The inability to be as creative as you want to be — 44.58%
  • False expectations — I thought it would be easier than it is! — 37.35%
  • The risk. It’s smaller than if you went out on your own, but it still exists — 12.05%
  • I’ve had nothing but a positive experience with franchising — 6.02%

Franchising is always a buzz word during a recession as entrepreneurs seek out tried-and-true concepts and avoid putting their dreams — and budget — at risk. However, the popularity of franchising doesn’t diminish the challenges that franchisees sometimes face. Almost half of Restaurant SmartBrief readers cited being unable to be as creative as they’d like as a difficulty in franchising. QSR Magazine’s November edition contains five examples of multi-unit franchisees and how they tackled issues such as financing, management, legal regulations, cost-cutting and delegating.

If you’re not a franchisee, but you’re interested in learning more, the International Franchise Association’s website contains answers to FAQs and a wealth of information, including details about legal issues, learning if franchising is the right path for you and figuring out financing options.

Additionally, SmartBrief on Small Business is a daily e-mail newsletter that provides news and tools for small-business owners as they navigate day-to-day operations.

What other challenges have you faced as a franchisee?