Franchising Myth #2: Every Franchise Has A Proven System

As a franchise buyer we have a sense that the franchisor is a big company that we can rely upon. Sadly there are a great many small franchisors who just don't work this way. They may have run their own successful business and then tried to systematize it the best they can, but unfortunately only they can really run it profitably.

A proven system is something that you can follow, step by step, to hire staff, train them, run the day to day operations, manage stock levels, manage your finances, market your business to find new customers, and so on.

The trouble is, it's easy to recognise that many franchises are small outfits (for example, if they've only got a few outlets, or have only been in your country for a couple of years), but it's a lot tougher to figure out how well their systems work. How on earth can you check the quality of the system, to make sure it really works? And who was the system designed to work for and will you be able to get it to work effectively for you?

Let's take one example. Two brothers invested in a printing franchise and after a good start, wanted to win more customers. He owned a very popular franchise business that has franchisees internationally. Yet it turns out that the proven franchise system is to go knocking on business doors every day until Steve has the chance to quote on 10 pieces of print. That's it