1851

Being a business owner of a retail franchise can be a dynamic experience full of highs and lows. The retail segment is notorious for its fluid and ever-changing landscape, which can present some challenges for franchisees in this marketplace.<ol><li>Most Americans Shop Online&nbsp;</li></ol>It’s no secret that capitalism and the world wide web work well together. According to&nbsp;<a href="https://www.bigcommerce.com/blog/online-shopping-statistics/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546#5-essential-online-shopping-statistics" target="_blank" rel="nofollow">Big Commerce data</a>, 51% of Americans prefer to shop online. Many of these consumers are Millennials and those from Gen X, who spend 50% more time shopping online than other age groups.&nbsp;For retail franchises, it’s important to adopt technology and also be able to offer services or – at the very least – have a presence online. Since the internet is the first place that most shoppers turn, having the brand show up online is very important. More and more concepts are incorporating apps and different types of digital platforms to connect with shoppers in many ways.&nbsp;<ol start="2"><li>Estimating Overhead Can Be Difficult</li></ol>Rose Wheeler, a business writer with&nbsp;<a href="https://www.fool.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">The Motley Fool,</a> points out how business owners often run into issues by ordering too much or too little inventory. An imbalance in product can create big ripple effects and financial implications for a business, and it's best that franchisees try to avoid that at all costs.&nbsp;“Keeping close relations with your manufacturers is always a good idea, as you can leverage things like renegotiating minimum order quantities to make placing bulk orders lighter,”&nbsp;<a href="https://www.fool.com/the-ascent/small-business/retail-management/articles/retail-challenges/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">Wheeler wrote in a 2022 article</a>. “You can also employ markdowns and promotions to run through excess inventory.”<ol start="3"><li>Customers Are Less Brand-Loyal&nbsp;</li></ol>Brand loyalty has tapered off in popularity in recent years, likely largely in part to a saturated market full of competition and choices for consumers. Because there are so many options within each segment, shoppers have increasingly been trying new retailers and giving stores other than their favorites a try – be it because of a better price, a catchy ad or something else.<a href="https://huumon.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">Huumon Creative,</a> a digital marketing agency,&nbsp;<a href="https://huumon.com/common-challenges-facing-the-retail-industry/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them-2721546" target="_blank" rel="nofollow">explains in a post</a> that “traditional customer loyalty programs such as special offers and promotions are still effective, but there is now a growing personalization trend. Maintaining communication with customers and getting to know them and their purchase habits is important to keep them loyal.”

3 Challenges to Owning a Retail Franchise and How to Overcome Them

1851 Franchise

Navigating success in the retail space takes adopting technology, being flexible with inventory and earning customer loyalty.

3-challenges-to-owning-a-retail-franchise-and-how-to-overcome-them

Onigilly Japanese Kitchen

Unlocking the Potential: How Much Can You Earn as an Onigilly Franchisee?

unlocking-the-potential-how-much-can-you-earn-as-an-onigilly-franchisee

Filta Environmental Kitchen Solutions

DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno 

Grease, Grit, and Growth: DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno, Nevada

grease-grit-and-growth-dewitts-ignite-new-chapter-for-filta-environmental-kitchen-solutions-in-reno-nevada

Layne's Chicken Fingers

Layne's Chicken Fingers-50 Unit-Wendy's-Franchisee-June-2025

Why This 50 Unit Wendy’s Franchisee Is Betting on Layne’s for His Next Big Move

wendys-franchisee-expands-with-laynes-chicken-fingers-texas

CapitalSpring

CapitalSpring’s Jim Balis Talks Growth, ROI and the Future of Fast Casual on “Rock My Restaurant”

capitalsprings-jim-balis-talks-growth-roi-and-the-future-of-fast-casual-on-rock-my-restaurant

Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

Top 25 Franchise Marketing Leaders: Kelsey McManemin — Vice President of Marketing, HTeaO

top-25-franchise-marketing-leaders-kelsey-mcmanemin-vice-president-of-marketing-hteao

How This Franchise Consultant Turned a Love for Dogs Into a Business with Dog Training Elite

How This Franchise Consultant Turned a Lifelong Love for Dogs Into a Growing Business with Dog Training Elite

how-this-franchise-consultant-turned-a-lifelong-love-for-dogs-into-a-growing-business-with-dog-training-elite

petbar Franchise Costs, Fees, Profit and Data for 2025

petbar-franchise-deep-dive

3 Challenges to Owning a Retail Franchise and How to Overcome Them

MORE STORIES LIKE THIS