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Top 15 Franchise Mistakes While Franchising In India.

Guest post by: Amit Nahar

Article Overview: Over the years franchising in India has traveled through many industries and segments and companies have tirelessly used this model to expand their businesses in India.What are the learning's? Where have a few of them faltered and why have some succeeded and some failed.What is common amongst the failure and success is the most commonly done mistakes.A few franchisers have learnt quickly and have moved fast to rectify them, the others could not whilst the smarter ones who learnt from the failures of others ensured they did not commit these costly franchise mistakes.They used professional franchise consultants or senior industry veterans who carefully crafted strategies around which they ensured that these mistakes were minimized. So what are these mistakes that franchiser must avoid? Here we go.....

Top 15 Franchise Mistakes While Franchising In India.

Over the years franchising in India has travelled through many industries and segments and companies have tirelessly used this model to expand their businesses in India.What are thelearning's? Where have a few of them faltered and why have some succeeded and some failed.What is common amongst the failure and success is the most commonly done mistakes.A few franchisers have learnt quickly and have moved fast to rectify them, the others could not whilst the smarter ones who learnt from the failures of others ensured they did not commit these costly franchise mistakes.They used professional franchise consultants or senior industry veterans who carefully crafted strategies around which they ensured that these mistakes were minimized.

So what are these mistakes.I would like to list the following, not necessarily in order of magnitude or seriousness, but otherwise.

1. Wrong Franchise Fee and Value Preposition perceptions
2. Incorrect evaluation of local competition and the different kinds of competitors the unit franchisee would have.
3. Franchisee Profiling
4. Accepting the cheque too soon
5. Roles and bearing of Advertisement, Marketing & Publicity on the business at various levels
6. Not understanding that you are a franchise system
7. Preparation of agreement before a lot of other things are clear
8. Wrong commission or ongoing royalty sharing arrangement
9. Training support systems
10. Precedence of concept over systems
11. Geographical demarcations, exclusive territories and adaptations to local market conditions
12. Interconnectivity of the franchise program
13. Importance to Operational Procedures and Manuals.
14. Driving sales.
15. Audit and Regulatory checks

Hence, It is very important to ensure that your franchise strategy covers all of the above points minutely ensuring you franchise your business correctly.

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Article Tags: costly franchise, franchise consultants, franchise development, franchise fee, franchise mistakes, franchise profile, franchise royalty, franchise strategy, franchiser, franchisers, franchising in india, industry veterans, professional franchise



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