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You own a company and you&rsquo;ve decided that the concept is reputable and sustainable enough to start selling. But while you may have a plan ready to go to take your brand from one to 100 units, there are inevitably going to be obstacles along the way&mdash;because, rest-assured, brands like McDonald&rsquo;s, Wendy&rsquo;s and Subway did not just waltz their way to the top of the franchise world.

After speaking with a couple of franchise development experts, we got the details on five key obstacles that are likely to happen. The good news? There are certifiable solutions to make sure your brand can become successful with sustainable growth.

One of the biggest problems that companies incur when they begin to franchise is having a weak development marketing strategy. This occurs when the company does not clearly communicate why they are a great opportunity. And in todays&rsquo; digital age, such messages can be easily muddied.

&ldquo;As the internet and other forms of social communication continue to evolve, it&rsquo;s imperative that franchise concepts utilize these new forms but also that they utilize them correctly,&rdquo; 1851 Franchise Chief Development Officer, Sean Fitzgerald said. &ldquo;They have to use the right form of media and communicate a clear message to their target market, otherwise the company is going to miss the mark of appropriately communicating what their brand is and does.&rdquo;

A second obstacle companies often have when trying to grow their brand is not having an in-depth sales process. Often times, when interacting with potential franchisees, companies don&rsquo;t work to keep the party engaged.

&ldquo;A lot of times during the sales process, companies forget to keep the potential buyer engaged, because they don&rsquo;t keep the buyer informed on their process and where they stand in the pipeline,&rdquo; Fitzgerald said. &ldquo;Similar with the aforementioned obstacle, communication with the buyer needs to be persistent and engaging. If a buyer is not constantly held in the loop, the franchisor is going to lose that lead because they weren&rsquo;t informed and may have even felt lost.&rdquo;

<a href="http://www.sportclipsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-a-concept-the-five-biggest-obstacles-to-growing-a-successful-franchised-brand-10316" target="_blank" rel="nofollow" target="_blank">Sports Clips</a>, the premier hair-cutter for men, is one of the most recognized concepts in the nation thanks to their far-reaching commercials and unique concept. However, even with the unique concept, there were obstacles for <a href="http://sportclips.1851franchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchising-a-concept-the-five-biggest-obstacles-to-growing-a-successful-franchised-brand-10316" target="_blank" rel="nofollow" target="_blank">Sport Clips* as the brand worked its way up to 1,500 locations</a> and beyond. This started with ensuring that the brand wasn&rsquo;t growing sporadically throughout the country.

&ldquo;What we saw with other brands when they were growing is a &lsquo;shot-gun&rsquo; approach, which means that the brands were adding locations anywhere and everywhere,&rdquo; said Sports Clips Vice President of Franchise Sales, Pete Lindsey. &ldquo;By seeing that approach, we knew that to attain sustainable growth, we had to plan expansion market-by-market.&rdquo;

By planning their growth according to each market, Sports Clips not only grew steadily, they were able to provide the proper amount of assistance to each franchisee who was opening a location. The brand was also able to properly vet each candidate and be selective of who was opening a location so the corporate team could be assured that each owner wholly aligned with the values of the brand.

A fourth obstacle for sustainable growth mentioned by Lindsey is that although a company may have a great onboarding process written out on paper, they may not totally support their franchisees through the sales process up to their opening.

&ldquo;For us at Sports Clips, we wanted to make sure that each owner had the proper support in place. This helped us ensure that not only is the owner successful when opening, but that every little detail was up to our standards,&rdquo; Lindsey said. &ldquo;The coaches in each market were hands-on during every opening process to make sure every requisite of the process was met.&rdquo;

Lastly, if a company does not get validation from their owners, potential candidates will not continue through the process to become a franchise owner. This means that during the onboarding process, if a candidate does not receive positive feedback from current owners, the candidate will question whether or not the concept would be the best to invest in.

&ldquo;The current franchisees are a vital part to the recruitment process for a company,&rdquo; Fitzgerald said. &ldquo;Current franchisees need to shed positive light on the company and show the candidates why opening a location with their company is in their best interest.&rdquo;

Franchising a Concept: The Five Biggest Obstacles to Growing a Successful Franchised Brand

1851 Franchise

Franchising experts weigh in on some of the biggest obstacles they faced while building their brands and how they got around them.


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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

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