Some franchisors hit too many obstacles.

Some franchise organizations with blind growth ambitions leave a trail of destruction behind. Destruction of illusions, careers, and many savings of well-meaning new entrepreneurs. What is the case?

You know the theory: In franchising, a franchisor provides a proven successful formula to often new independent entrepreneurs. Because it is a proven success, the candidate can expect a success rate of at least 80 to 90%. This is what positively distinguishes franchising from independent entrepreneurship without a formula!

But practice is sometimes different! Recently, I was confronted with a rapidly expanding franchise organization that, within four to five years, has seen more than half of its franchisees disappear out of necessity. Sometimes in harmony, but more often leaving behind significant damage, to suppliers, banks, and the franchisor itself. Speak to the franchisor, and they consistently point to the franchisees. And naturally, 'the latter undertakes at their own risk and expense.' Speak to the ex-franchisees, and you hear a very different story. The truth is often complex. And usually, the franchisor has the legal upper hand.

However, there is more than legal fairness! We must not forget that the personal suffering that accompanies a failed business venture morally obligates franchisors to act carefully as well! This includes first proving that one or more pilot locations are truly successful, then critically selecting entrepreneurs, and conducting a good location analysis. But also providing extra support during tough times.

Fortunately, there are many good franchisors in the Netherlands, but unfortunately, a few are not sensitive to this moral responsibility, blinded as they are by their ambition to sell within 5 years or to become a famous Dutch person! If franchisors do not sufficiently see this moral obligation, supporting advisors, accountants, lawyers, and not least the banks, must early on point this out to them. If necessary, by terminating cooperation or services with them. This may be painful, but it is still better than causing more damage and ultimately generating negative publicity for the formula and thus for the phenomenon of franchising.

Franchisors who recklessly speed on the road to maximum growth hit too many barriers! It is up to all of us to protect well-meaning but sometimes naive franchisees from this.