Actually, franchise is profitable business but it can be unprofitable business also. One reason for that is the franchise business is more easily manage expectations and achieve return on investment. Moreover, like many franchisors already promised when they presented the business in you before about the profit that can you take in only a few months. Here you will know some factors why franchises can fail.
1. In terms of the franchisor, the failure of the product could be inappropriate. It means that you can get the failure when you sell inappropriate products as your choices. The products will never sell to the customers in a better way.
2. One business concept. It means that you choose a wrong concept for your business so that you can get fail.
3. Franchisors do not have a strong commitment to support their franchise. As a franchisor, you have to have a hard work and also the commitment to works your franchisee business as well as you can so that you will never get fail in this business.
In the other hand, from franchisee side can also become factors for the failure of your franchisee business. It is usually caused by:
1. The low entrepreneurship from the franchisee.
2. More passively. In fact, the franchise is not guaranteed to succeed because it takes the involvement of all operational issues.