Significant stages of franchise operations
The following are five major stages that franchisees encounter when setting up franchise operations:
Stage 1 While you search for a franchise, the first thought that comes to your mind is whether things will work out fine. At this stage the franchisor should provide encouragement and support.
The level of excitement and sense of euphoria starts to drop a little at this stage as you may become sensitive to the royalty and advertising fees.
At this stage, as the business starts getting slowly established, you might expect more success owing to your hard work and effort, just realise that a proper set up takes time. We all try to take the credit when we are doing well. However, we tend to blame someone else when we make mistakes. In the ‘Me’ stage, the franchisor starts to receive criticism if thing are not going well.
In the Free stage you may feel that you want to get out of as you feel imprisoned by the terms and conditions and the resultant restrictions. Stage 5
In the final stage, franchisor and franchisee communication is well formed. Both parties will try to continually work things out in an effort to make the most of the business relationship.