2. Franchisee does not enjoy the franchise.

The franchisee discovers too late that a franchise system does not fit his/her personality type and preferences. This is why the evaluation stage of franchising is critically important. You have the opportunity to talk with and physically visit other franchisees before you acquire the franchise. An example is a person may enjoy working on cars, but, if he purchases an automotive franchise, he is going to be managing a business and hiring people to work on cars.

3. Franchisee does not follow the franchise system.

If you are the type person who wants to “reinvent the wheel”, don’t invest in a franchise. Franchisees invest in a franchise to learn the business. It is important to adhere to the high standards of quality which makes the franchise system stand out and which customers expect to get from every other unit in the franchise system.

4. Franchisee does not enjoy interacting with people.

Often success depends on the franchisee’s ability to get along with customers, employees, other franchisees, and, of course, the franchisor.

5. Franchisee could not really afford the franchise.

Until the new franchise makes a profit, he/she does not have enough money to run the business and to cover living expenses. In franchising you have the opportunity to evaluate the business by calling other franchisees. No one knows your standard of living but you. If a franchisor says on average you will need to cover living expenses for x months, you may want to add a cushion. Working capital to run the business day-to-day and living expenses are two different things.

6. Franchisee did not have family support.

Owning a franchise and entrepreneurship should be a family decision since there will be intense demands on your time. Not having spousal support can obviously have a significant negative impact on managing the business.