3 Things Franchisors Should keep in Mind
Capital Availability When it comes to franchise capital there are several ways to get it. The most common way to get franchise capital is from a business loan. However many people also save franchise capital. Also franchise capital is often raised by other franchises. Finally franchise capital can be gotten by owning a franchise. Franchise capital can make a person very rich “Concerns about capital availability are actually the result of the other mentioned risks. Due to their losses during the recession, banks around the world lowered their equity. Regulators are now pressing the banks to restore their equity to their original or even higher levels.
Following the new franchise system. If a franchisee is willing to do everything [the franchisor] tells them to do, then it doesn’t matter that they don’t have food or accounting or marketing skills, because they can always hire people
Work hard. The best explanation of people willing to work hard is that people was motivated by the satisfied with their individual needs such food, money and so on. It is widely believed that motivation theories and business success are inextricably linked when dealing with the management of workers. People's willingness to work hard is especially important in relation to motivation, which is clearly connected with leaders or managers, are supposed to do is to motivate people by a combination of rewards and threats - the carrot-and-stick approach. More recent thought and some research suggests that you and I motivate ourselves to large extent by responding to inner needs. If you think that buying a franchise means you’re going to have everything handed to you on a silver platter, think again. [Franchisees] must be willing to work harder than they have ever worked in their lives,” says McKinnon. “There is no ‘easy’ business or franchise, despite what many believe. All startup businesses are hard work, and starting a franchise, while it has much less risk than a no franchise startup, is still hard work.”