As it is the case with other businesses, there are several reasons why franchises fail. Enhancing one's chances of becoming a prosperous franchisee can depend on addressing the common issues that can impact on a franchise by addressing them upfront.
One of the primary reasons franchises fail is because potential franchisees often rely too much on the professional assistance and systems supplied by franchisors. If one is going to own a franchise, it is essential that one develops the financial and accounting skills necessary and backs them with intimate knowledge of all the operations that make up the business. Being a franchisee means being able to act as the HR manager, accountant and marketing guru, and everything in-between.
There are many pitfalls to watch out for when launching a franchise. However, once one is aware of all the business risks, one can take steps to lessen or avoid them completely, significantly increasing one's chances of commercial success.