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nikmaricic
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Taking over a franchise can be tricky, especially if you don’t have experience in franchising. However, there is always “potential” to turn a business around.

The difficulty with turning a franchise business around is that sometimes they have really strict compliance that has to be adhered to. This could involve reporting systems, staffing protocols, marketing, fit-out, etc. These are all things that would need to be assessed to to see how much leeway you have, therefore allowing you to turn the franchise around.

The unfortunate thing is that many companies sell a franchise to unsuitable candidates. These people are most likely unsuitable, they don’t have experience and the support network from head office might be non-existent. Some companies simply sell a franchise so they can make quick money, but don’t analyse the location or market potential or the suitors capabilities.

One thing you have to remember is that when the franchise opened, I’m sure the franchisees were really keen to ensure the success of their venture. However, something might have happened along the way to turn things pear shaped. Question is, what was it? Lack of a market? Lack of experience? Lack of head office support?

There are many things to look at when wanting to buy a franchise, but biggest thing to worry about is the compliance. I’ve done countless research on franchising and I have a friend who’s the National Ops Manager of a large coffee chain. He tells me there are franchisees that become non-compliant for simply changing a process. These franchisees then need to be dealt with. That being said, maybe the franchise you are looking at are non-compliant and aren’t following the systems and processes put in place by the head office. Maybe the franchisee thought they knew better?

Whatever question you can think of, write it down and ask it – the answer of one of them could be what ultimately makes up your mind.

Good luck!