Top 5 Reasons Why You SHOULDN’T Buy a Franchise

Franchisees failing is rare, but it does happen. Sometimes it’s just not the right business model for that area, and sometimes it’s not the right concept for that person. Franchise owners can only make mistakes or mislead operations so much before it becomes a major problem for them and the brand. 

To try and prevent a franchising flop, franchisee candidates need to vet themselves just as much as they do the brands they’re researching. Most interested parties go through a long due diligence process researching companies and asking questions. But many of those concerns need to be equally reflected inward. 

When wondering, ‘Is this brand the right fit for me?’ also consider ‘Am I the right fit for this brand?’ In addition to ‘How can owning this franchise benefit me?’, go on to ask yourself, ‘What can I bring to this franchise that will benefit the system?’

Experienced professionals in the industry shared their takes on the top reasons one should not invest in a franchise.
 

1. “Don't buy a franchise if you want to create something completely new and different. Franchising is really about implementation and execution, and not so much about creativity and Innovation at the unit level,” said John Francis, franchise coach, advisor and speaker at Next Level Franchise, Inc. “Don't buy a franchise if you have to change things and want to tinker and make it yours; that's not a good idea as a franchisee.”
2. “You’ve got to be willing to be part of a team, and a family and system, and believe in it,” said Steve Beagelman, founder of SMB Franchise Advisors*. “If you're not comfortable in that kind of environment even though you technically own your own business, then you shouldn't be a franchisee. Brands want ambassadors that work together all over the country and that believe in it.”
3. “Don't buy a franchise if you want to own a business where you do everything yourself. Franchising is about relationships and working with the system and the brand, and the people in that brand are important to collaborate and share with and learn from,” Francis said. “You have to like to speak, share and talk and to meet up to discuss, listen and collaborate. If those things are not your strength, you maybe should not consider franchising.”
4. “If you want to create your own concept or you want to change the concept, you shouldn't buy a franchise. If you're somebody who wants to partner with a restaurant brand, but then you want to change their procedures, uniforms, decor or recipes, then you're much better off owning your own business and opening it yourself and trying it on your own,” Beagelman explained. “Not everybody is meant to be a franchisee, and I tell clients that it's okay to say no to somebody if they're just not the right fit.” 
5. “Don't buy a franchise if you want to get rich quickly and take advantage of others. If people cut corners, lie, cheat and steal, it won't get very far. Greed and ego can get in the way of true success with people and the potential impact of franchising,” said Francis. “Franchising is based on good people working hard for mutual benefit, not one against the other. It’s like economic Darwinism – the good franchises always adapt, change, grow, innovate and create value for those people involved. There has to be real value and integrity to work long-term.”