How a Franchise System Can Fail

Too many entrepreneurs dive into a franchise system with the belief that their success is guaranteed. After all, the business has a recognizable brand name; other franchisees have opened the same business all over the country; and the company makes a great product. Nothing could go wrong, right?

Unfortunately, it’s just not that simple. That’s why hundreds of new business owners experience failure every year, all across the United States. But you can’t blame those entrepreneurs in every single scenario. A major factor causing those businesses to fail is the lack of a solid, duplicable franchise system. You could be the hardest-working franchisee in the company, but if the right pieces aren’t in place, then it won’t even matter.

Without a proven, effective strategy for you to follow, your business could be doomed from the start.

Signs of a poorly organized franchise system

Let’s take a look at some of the common reasons why many franchise opportunities simply don’t work.

- Poor corporate management
Individual business owners play a huge part in the success of a franchise. But if the people managing the company aren’t doing their part, then they are indirectly sabotaging the franchisees. The best franchises must be run by competent executives who understand the business and are committed to executing a sound business strategy for their franchises to follow.

- Inconsistent operations
Have you ever walked into a franchise in one location that was a completely different experience than another location? These inconsistent operations are often a sign that the franchisor doesn’t have a solid business model for franchisees or that the company doesn’t provide training to reinforce that model.

- Inconsistent branding
Besides the operations themselves, inconsistent branding is another factor that contributes to a failing franchise system. This could be inconsistencies in the logos, the menus, the language that employees use with customers, the look of the building, and so on. When the branding isn’t consistent, consumers can’t expect the same experience at all locations, and this can hurt the overall business tremendously.

- No marketing plan
If the franchise system (Learn More) doesn’t include a well-planned marketing strategy, or at least recommended avenues for franchisees, then the business could have a much harder time producing new customers. Not all forms of advertising are effective for every business. That’s why franchisors must equip business owners with research on who their key demographics are, which marketing methods are most effective, and what types of messages resonate with consumers most.

A fresh alternative to traditional franchises

HUMAN Healthy Vending gives all levels of entrepreneurs the opportunity to reap the largest profits in the vending industry with our healthy foods, drinks and snacks. We offer a proven business model that rivals the best franchise systems in the world, and we back it up with high-quality products, training, extensive market research and substantial expertise in vending, business and the food industry.

If you’re looking for a simple, yet highly profitable business that scales easily, then HUMAN may be the perfect fit for you.

To learn more about the lucrative vending opportunities at HUMAN Healthy Vending, contact us today!