All Topics > Franchise > Franchise System Failure >

Franchise System Failure Michigan

Statistics show that your chances for success as an entrepreneur are greater if you start your new business as a franchisee rather than opening a business all on your own. However, there are times when even franchise systems aren't successful and around for the long term. Of course there are no guarantees but you can boost your chances for finding a franchise with stability by doing some additional research.

1. Local Companies

2. Avoid Buying a Franchise that Might Go Under

3. Validating the Franchise

4. Support from Franchisor

5. Featured Local Company

1 . Local Companies

Thirty-One gifts
(989) 832-7813
1117 Corrine St
Midland, MI

Seniors Helping Seniors
616234-0190
1515 Michigan NE
Grand Rapids, MI

Ernst Law Firm, PLC
313-965-5555
645 Griswold, Suite 4100
Detroit, MI

Advantage Legal Services PC
800-964-4240
65 Cadillac Square, Suite 2201
Detroit, MI

Walter Metzen-Attorney
313-962-4656
Penobscot Bldg Suite 3156
Detroit, MI

Charles Skupin & Joseph Lucas
800-771-4811
155 W Congress
Detroit, MI

Mountain Stone Co
(906) 635-9191
3060 W M 28
Brimley, MI

Smokies Restaurant & Lounge
(734) 283-3228
930 Biddle St
Wyandotte, MI

L C Management
(248) 355-0222
23200 Thorncliffe St
Southfield, MI

Advanced Business Solutions
(517) 625-6073
2745 W Lansing Rd
Perry, MI

2 . Avoid Buying a Franchise that Might Go Under

A franchise company usually begins when someone has a desire to bring a product or service to a wider audience. One or more units, often called company stores, are opened so the product or service can be tested, refined, retested and improved. Once the company stores have experienced some success, the company will begin early franchising efforts.

Opening the first 10-25 franchised units is often the most difficult phase for a franchisor. The company will have to learn how the concept works in a variety of locations and with a variety of franchisees. Marketing can be tried on a larger scale and there are hundreds of details to be modified, changed, refined and locked down.

Once this initial group of franchisees experiences financial success, the franchisor will open up franchising to a larger group. If you are a risk taker, feel free to jump in at any of the earlier stages of a franchisor’s development. If you’d rather avoid risk, confine your research on potential franchise opportunities to those companies that have survived the initial stages and have at least 25 or more successful franchise operations in place.

Yes, there are companies that are solid gold from inception. But as a general rule, the earlier you get involved in any business, the greater the risk. Not only that, by joining an established company you will also avoid many of the bumps along the road. A franchise that has reached a modest number of successful franchisees will have added sufficient infrastructure to support you and the marketing/branding efforts will help draw customers to your location.

By focusing your search on those companies who have reached this stage of development, you can increase your chances of success in finding one that will be around for the long term.

3 . Validating the Franchise

Another way to increase your chances of franchisee success is to talk to the existing franchisees in a system. This cannot be overemphasized. The very best way to learn about a franchise system is to talk to a variety of franchisees and ask them very pointed questions, such as, “Have they reached their financial goals as a franchisee?” You want to find out actual earnings, not pie-in-the-sky expectations. New franchisees are notorious for having unrealistic expectations about the profitability their business will experience, until they’ve actually been in business for awhile.

The next question to ask existing franchisees is about the overall attitude of the franchisor about the business itself. What you want to see here is an attitude from the franchisor that their success is based on the success of the franchisees. In general, the more the franchisor is willing to help the individual franchisees become successful, the greater the longevity of the company.

4 . Support from Franchisor

Once you’ve talked to existing franchisees and gotten good feedback about the company you will want to take a close look at the infrastructure of the franchise company. Your success as a franchisee will depend on the dedication and expertise of the operational support people so find out how long they’ve been with the franchisor and what previous experience they’ve had. Your conversations with existing franchisees should help you learn whether these people are competent and accessible but you will also want to talk to these support people yourself to be assured of compatibility. The operations and support people are there for your benefit and you want to make sure you will get your money’s worth out of the association.

While there are no guarantees that a franchised company will be around for the future, there are ways to position yourself for a greater chance of success. When doing your research, keep in mind that a company that has reached at least a modest number of units (a minimum of 25 is suggested) has a better chance of long-term survival than one that is new to franchising. If that company also has happy and successful franchisees and the right attitude toward mutual success, then you should feel comfortable the company has a very good chance of survival.

When making a decision as important as purchasing a franchise, you definitely want to be sure that the company will be around for the long term and that you will get the full benefits of being part of a franchise system. The bottom line is that just like any business, franchise companies can also fail. However, you can minimize your chances of joining a franchisor that won’t be around by doing a complete and thorough investigation of the company. This will take more work on your part but your reward is that you will be better protected from buying a franchised business that might go under.

5 . Featured Local Company

Thirty-One gifts

(989) 832-7813
1117 Corrine St
Midland, MI

Read more about Franchise System Failure

- Franchisor Values Michigan

You want to ensure that your franchise carries on the values of your franchisor. Your franchisor most likely has a set of values that you are required to maintain in your franchise.

- Choosing a Low Cost Franchise Michigan
- Finding Great Franchise Team To Join Michigan
- Purchasing a Construction-Related Franchise Michigan
- Running a Successful Franchise Michigan
- Choosing Big Name Franchise Michigan
- Franchises Michigan
- Staying Organized Within The Franchise Michigan
- Name Selection For Your Franchise Michigan
- Franchising Skills Michigan

Regional Articles

- Franchising Skills Michigan

Owning and managing a franchise takes skills in many different areas and time. If you want your franchise to be successful you will have to invest a certain amount of time into it. You will also need to have what it takes to manage the franchise. Read on and learn more.

- Finding Great Franchise Team To Join Michigan
- Purchasing a Construction-Related Franchise Michigan
- Franchises Michigan
- Running a Successful Franchise Michigan
- Choosing a Low Cost Franchise Michigan
- Name Selection For Your Franchise Michigan
- Staying Organized Within The Franchise Michigan
- Franchisor Values Michigan
- Choosing Big Name Franchise Michigan

Related Local Event

The National Franchise & Business Opportunities Show-Detroit
Dates: 11/14/2009 - 11/15/2009
Location: Rock Financial Showplace, Novi
Novi, MI
View Details

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History