Franchisee “Red Flag” Checklist

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Since 2006 I have had the distinct honor to work with some of the most recognizable and successful Franchise Systems worldwide! Over the past ten years I’ve identified 12 traits and behaviors of Franchisees that had a tendency to struggle within their franchise system. I call those traits/behaviors my Franchisee “Red Flag” Checklist:

  1. Not following their business plan
  2. Waiting too long to add capacity (employees, equipment, etc.)
  3. Making first hires friends and family
  4. Not knowing their competitive landscape
  5. Unwillingness to change
  6. Depending too much on corporate marketing for leads…Lack of local area marketing/networking efforts
  7. Not knowing their numbers
  8. Spending too much time in the office
  9. Not having enough customers
  10. Finding/Retaining profitable customers
  11. Lack of prospecting/new business development efforts
  12. Unwillingness to follow established policies/procedures

Here are 12 traits/behaviors I suggest Franchisees exhibit if they want to be successful:

1.   Follow the system in place

2.   Network with top performing Franchisees (Within and outside their system)

3.   Take advantage of all training options

4.   Define Success (Establish key performance indicators…KPIs)

5.   Know their Customers (Segment their market place)

6.   Know their Competition (Establish competitive differentiation)

7.   Establish their Go-to-Market Strategy (Including a written sales and marketing plan)

8.   Leverage Social Media (Establish their virtual business strategy…VBS)

9.   Be Active/Visible in their Community

10. Have Access to Capital

11. Staff up for Growth

12. Stash some Cash

Put these behaviors in place and watch your business grow!!