OK, so you did all your homework before signing your Franchise Agreement, and you just know that you’re poised for Entrepreneurial Success. Well, you certainly could be…..if you avoid the classic mistakes that Franchisees make AFTER they sign the Franchise Agreement. You see, you are now in execution-mode, and any glitches along the way could greatly reduce your success or even cripple your business. Over the past 20 years, I’ve seen Franchisees repeat the same mistakes over & over again…..but you can avoid them IF you’re careful. So, check out the “10 Biggest Franchise Mistakes AFTER You Sign Your Agreement”. 

1. Taking On the Wrong Location. “Location, location, location”….right? Location IS absolutely critical, and taking on a mediocre location for the sake of a cheap rent is a huge mistake. The Franchise should know what locations work best, and how much rent you can afford. So, do not sign any lease until you feel confident that it’s a great location and the economics are right.
2. Failing to Have Your Lease Reviewed By a Lawyer. Landlords love it when tenants don’t have a lawyer review their lease. That’s because the tenant will miss some of the “snakes” that are hidden in that lease, and that could ultimately cripple your business. You see, the Lease is written to benefit Landlord, and NOT YOU.  You need a capable lawyer to find the unreasonable demands, restrictions and conditions that are often buried in a lease, and negotiate them away.
3. Buying Equipment Outside of the System. The Franchise’s equipment specifications are very clear, and are the result of scores of successful store openings.  But you’re convinced that YOU can source equipment cheaper and just as good. What a mistake! First of all, you won’t match the specifications. And second, you are wasting valuable time that should be spent on planning and marketing your store opening.
4. Fighting the Franchise Over Approved Designers and Contractors. The Franchise has several approved Designers and Contractors, but you want to go with some no-name outfit (or your uncle or neighbor) just to save a few bucks. Mistake! They have never built with this Franchise, and all their mistakes will be on-your-dime. Look past control, ego and the allure of possibly saving a few dollars, and just go with the Program. It’s safe and it works!
5. Not Taking Your Training Seriously. Some Franchisees consider Training a needless inconvenience and expense, and they don’t take it seriously. That’s a huge mistake! Your Training is critical because you cannot run a successful business unless you understand every facet of the operation AND can teach it to others.
6. Relegating Your Business to a Manager. Once you are comfortable running the business, it’s fine to turn it over to a Manager. But to place your business in the hands of a Manager right from the start is a classic mistake. From control issues, to setting the proper tone of the business, to honesty issues, to abandonment (i.e. they leave), you must make sure that you are in full control your business.
   
7. Buying Goods from Non-Approved Suppliers. Some Franchisees are preoccupied with shopping and driving all over town to save 50¢/case on an unapproved item, from an unapproved Supplier. How short-sighted is that?! Your Franchise negotiates a Group-Buy that produces a total cost of goods that’s right for you. Ultimately, this nickel & dime behavior will only make you less important to the Approved Supplier, and it will just waste time, energy and focus that could have gone into building sales or improving your business.
8. Compromising Quality, Professionalism or Image. Some Franchisees simply get numb (or lazy) about keeping their stores looking fresh and tight.  Even worse, they get lackadaisical about over product quality and presentation. This is an amazing mistake, and customers always notice. Then, as their business inevitably begins to decline, they demand to know what the Franchiser will do to help them bolster sales. Often times, it just takes a re-commitment to quality.
9. Discounting the Need For Marketing. You’ve just spent a “King’s Ransom” to open your business, and now you balk at spending a few thousands to let folks know your there and offering them a deal to come try your fabulous products. Wow, what mistake! You need marketing at the Grand Opening, AND on an on-going basis to continually lure in new customers and get them back more often.

   
   

10. Not Offering Sufficient English. Successful, Non-American born Franchisees know this: True Customer Service is about “connecting” with customers, and that requires that sufficient ENGLISH is spoken in the store. Forget about political correctness – this is about making money in America! And if you want to do that, hire English-speakers for positions that engage customers.

    
    

The above mistakes can cause delays & cost overruns, inadequate sales volume and general frustration/disappointment….and they can be greatly avoided. You bought a Franchise because you (supposedly) understood the benefits of going with a proven franchise system, so FOLLOW their program. The stakes are high, and this is is no time to be a Maverick, cheap or stubborn. Being successful means repeating what works, and staying away from mistakes that are known to cause pain. So, avoid the above mistakes and you’ll be better positioned to achieve your goals.

Mark Kaplan is the Franchise Coach, and editor of BestFranchiseInformation.com. Mark is also the CEO of Great Wraps, Inc., a rapidly growing Franchisor of Hot Wrap & Grilled Sandwich Shops. Mark has spent over 20 years in Franchising, and he has a no-nonsense way of showing Entrepreneurs how to be successful in Franchising. Prior to Franchising, Mark championed major, national Brands for Corporate powerhouses like Coca-Cola, Nabisco Brands & Colgate Palmolive.