Watch Out For Franchise Indigestion!

Choosing a food franchise can be a great way to go into business if you go for a very well proven franchisor with lots of successful outlets.

However, there are a lot of food franchises as it’s one of the biggest sectors in franchising and there are lots of people starting franchises that don’t stand much chance of success.

Passion Is Not Always Enough…

Let’s just consider one example – a lady called Carol, who had bought a fresh farm-food delivery franchise, contacted us for help with getting more customers.

Her passion was healthy eating and organic food and she wanted to bring it to her local community so that everybody could enjoy it.

Sadly her organic evangalism got the better of her. Carol was so excited by the goodness of what she was trying to do for other people that she thought it would be impossible to fail.

Will The Brand Sell Itself?

She enthusiastically set off with her leaflets and pushed them through doors in her neighbourhood. She went to networking events and put adverts in the newspaper.

All the advertising materials had come directly from the franchisor. None of them worked. She was in real trouble. Her fuel bills were barely covered by her delivery profits and she was unable to make the franchise work.

Franchisor Worked On It…

The franchisor admitted to her that they had big problems with the marketing and couldn’t get it to work. They had a bunch of new leaflets designed, but these made no real difference.

But the problem was that each new leaflet or idea would cost the franchisor a few hundred, but the franchisees had to buy the printing, pay for delivery of the leaflets and then hope for the best.

The franchisor was testing his marketing with their money. Not a good franchise, not a safe investment.

Eventually Carol’s franchise failed and she went back into employment. Because her franchise agreement protected the franchisor, Carol lost all of her investment despite the franchise not working effectively for her. This is the sad side of franchising.

The Franchisor Wanted It To Work…

Although a nightmare situation for Carol, the franchisor set out to build a good business, but started selling franchises without a solid core business system that worked.

While this may not seem like a very positive story, the reason for telling it is simple. You need to do your due diligence very carefully when you’re considering a franchise and check all aspects of the franchise you’re researching.

Ask The Right Questions

It’s not enough that the franchisor has managed to make money from their venture.

Perhaps it was their personality that made them successful, or perhaps it was their family contacts.

Whatever the reason, do not assume that you’ll be able to succeed in the same way that they have until you’ve seen evidence that other franchises are successfully attracting clients and making a go of their food franchise business.

This is particularly important when you are enthusiastic about the specific kind of food franchise that you’re going after.

Whether it’s organic food, health food retail or an ice cream parlour, just be careful that your passion does not blind you to shortcomings in your chosen food franchise opportunity.

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