Key Franchise Mistakes to Avoid: The Illusion of Freedom
Posted on: September 26, 2017 by RMS Hospitality
Franchise Ownership Pitfalls > Lack of Freedom
In our last post, we discussed some of the pitfalls that new franchise owners encounter. While there’s always room for growth and learning, the misconceptions versus the reality of owning a franchise can be a deal breaker for many. In this article, we’ll explore the pros and cons of franchises as they relate to the freedom the new entrepreneur might want. In addition to sharing this information with your clients, ensure they are adequately protected with the most comprehensive Franchise Select Insurance Program available.
Although having the support and guidance of the franchisor can be incredibly valuable, in some cases franchisees may feel stymied by the lack of freedom. Not only does the franchisor set guidelines regarding inventory and prices, but they may also determine what hours you work and even which employees you hire. If you prefer to make all the decisions in your workplace, you may have a difficult time in the franchise world, says Intuit.
In some cases, franchise owners might feel dependent on their parent companies for support, advice and guidance. However, a lack of freedom doesn’t necessarily translate to complete reliance on the corporation. With so many people to consult, a question might take days or even weeks to get a response. Feeling left behind or uninformed is never good for the business, so maintain regular communication should be prioritized. By doing so, franchise owners can get a better sense of independence and running their business without the burden or consulting someone for every small detail.
About RMS Hospitality Group
At RMS Hospitality Group, we strive to protect each facet of franchises. For decades we have provided quality insurance solutions, business consulting, and aggressive claims management for businesses nationwide. As a testament to our experience, we were appointed in 1994 as one of the few “McDonald’s Approved Vendors” for franchises nationwide and became the largest broker in the system through the decade. We are also proud to announce that we are recognized as a Dennys Franchise Association Allied Partner. For more information about our comprehensive list of products, we invite you to contact us today at (516) 742-8585.