Four Notable Challenges in Owning a Franchise Store Working Inside the Franchisor’s System: An established franchisor has a system of operations that requires strict adherence. While it provides liberty in many traditional senses against the difficulty of entrepreneurial independence, it is structured with certain conventions that must be adhered to. One example would be pricing. You’re not going to have a lot of haggling at a fast food place, but you may have some substantial haggling over certain department store goods. The wiggle-room for discounts can be very slim in a franchised option, because there’s a national — sometimes international — standard to uphold. Initialization Risk: When a new franchised store opens, it will face some of the same risks a newly opened private business faces — things like visibility and traffic will come into play, and certain metrics must be maintained for the store to continue. Franchisors have standards here, and they’ll be similar to those your own budget introduces. This risk is diminished from individual exploits, but it is definitely still a consideration. Marriage and Its Consequences: Getting involved with a franchisor is, in many ways, like being married. You’re in a partnership that allows for some freedom, but it’s a partnership that is legally binding and lasts for a long time. The solution here is to choose carefully, and fully commit once the choice has been made. Battling False Expectations: Getting a franchise store will very likely yield financially in the long run, but it takes time and effort. It’s a full-time job, and not something that will bring instantaneous riches. You’ve got to be prepared to be realistic and work hard, and in the end there’s a high likelihood of that work paying off. Franchising has revolutionized business practice and can be exceptionally lucrative, but it requires careful consideration and a strong work ethic. For the right investor, it’s one of the most sustainable business decisions available.

1. The 4 Greatest Challenges
(and Opportunities) All
Potential Franchisees Face

2. Running a fast food franchise store comes
with challenges and advantages unique to
the enterprise. Following are four of the
most prominent in each category.

3. Topics of Discussion
1. Four Advantages of Owning a
Franchise
2. Four Notable Challenges in
Owning a Franchise Store

4. 1. Experience: A franchise that’s been around a while
has accumulated information pertaining to operations.
When buying into an established fast food franchise,
you’re buying into all that knowledge, and don’t have
to learn lessons the hard way through trial and error
disguised as strategy.
2. Training: Prime franchises offer implantation that’s
basically turnkey; that is to say, operations have
become streamlined enough that when a store is
brought into operation, franchise professionals help
ensure it functions as intended. You’ll be trained in the
operation of the new facility.

5. 3. Products/Services & Advertisement: A franchise has
already been established in the market, so the “marketing”
has been done for you. Services or products rendered can
be purchased in bulk — a smaller business has marketing
and product-related expenses that simply aren’t necessary
with an already-established franchise.
4. Continual Research and Development: It’s to a franchise’s
advantage to continue discovering and implementing
streamlined methods of operation. Not only will they advise
you on the best business practices they’ve discovered for
the franchise over the years, and those new ones which
have just been developed, but they’ll continuously refine
the product or services sold in your store.
cc: sixes & sevens - https://www.flickr.com/photos/45665251@N00

6. 1. Working Inside the Franchisor’s System: An
established franchisor has a system of operations
that requires strict adherence. While it provides
liberty in many traditional senses against the
difficulty of entrepreneurial independence, it is
structured with certain conventions that must be
adhered to.
2. Initialization Risk: Franchisors have standards
here, and they’ll be similar to those your own
budget introduces. This risk is diminished from
individual exploits, but it is definitely still a
consideration.
cc: Thomas Hawk - https://www.flickr.com/photos/51035555243@N01

7. 3. Marriage and Its Consequences: Getting involved
with a franchisor is, in many ways, like being married.
You’re in a partnership that allows for some freedom,
but it’s a partnership that is legally binding and lasts
for a long time. The solution here is to choose
carefully, and fully commit once the choice has been
made.
4. Battling False Expectations: Getting a franchise store
will very likely yield financially in the long run, but it
takes time and effort. You’ve got to be prepared to be
realistic and work hard, and in the end there’s a high
likelihood of that work paying off.

8. Want to learn more? Please visit our
blog at:
http://www.hotdogonastickfranchise.com/
blog/4-greatest-challenges-and-
opportunities-all-potential-franchisees-
face/
Or visit our website at:
http://www.hotdogonastickfranchise.com/

9. Disclaimer: This information is not intended as an offer to
sell, or the solicitation of an offer to buy, a franchise. It is for
information purposes only. Currently, the following states
regulate the offer and sale of franchises: California, Hawaii,
Illinois, Indiana, Maryland, Michigan, Minnesota, New York,
North Dakota, Oregon, Rhode Island, South Dakota, Virginia,
Washington, and Wisconsin. If you are a resident of or want
to locate a franchise in one of these states, we will not offer
you a franchise unless and until we have complied with
applicable pre-sale registration and disclosure requirements
in your state. Franchise offerings are made by Franchise
Disclosure Document only.