7 Common Obstacles While Running a Franchise Business and Their Solutions

Franchising is a very common practice amongst owners who are looking forward to expanding their business. Even though all of us are familiar with the way in which franchise business agencies work, there is a misconception that only clothing or food franchises are actual franchise businesses.

The truth is that there are many businesses that can be expanded with the help of franchising. Amongst so many franchises that exist in the present time, some of the most popular ones are health and fitness, financial services, cleaning and maintenance, automotive, and even pet-related franchises.

It is important for the franchisor to establish an existing business model that is followed by an entire network that falls under the franchise name. This involves many different things such as methods, signs, logos, and absolutely anything that is considered as an identity of the franchise.

While the franchisor always benefits with the help of expansion, the franchisee is responsible for selling products and services while keeping up with a tested business process. There is no doubt that owning a franchise business is one of the most proven methods of expanding a business, but the fact of the matter is that franchising has some challenges that can be addressed one by one for smooth functioning. We are here to provide franchise business help.


Some of the common obstacles while running a franchise business are:

1)Being Consistent with Vision: A seamless functioning of the franchise business is important for the franchisor and franchisee. Any failure to do the same can affect the franchisor and the franchisee but comparatively the stakes are higher for the franchisor.

Let’s say if you are someone who has started an insurance franchise then you will be monitored by the franchisor at most times. There will be an audit on whether you are working in accordance with the vision of the parent company and if there is consistency in the products or services of your brand.

You must always be consistent with fulfilling your vision when you run an insurance franchise. If you make a decision to start a Superior Insurance business franchise then you will get all the help needed to carry out your everyday operations. This assistance will also bring into perspective concerns about capital, time, infrastructure, and the right kind of people.

2)Peaceful Business Relationships: It is very important for business relationships to be harmonious. We all know that no two people can think completely the same. It is natural for disagreements to happen and there is not any method that can potentially solve these disagreements.

Even though one could argue that avoiding them is a solution, there is no definite way to have a completely peaceful relationship. In a professional scenario, it is always best to find out the deep-rooted cause of the disputes and then focus on solving the problem at hand.

In the case of franchise ownership with Superior Insurance, the franchisor makes sure that you are always communicating as often as possible. Sometimes, a small let down or even an interruption in communication can turn out to be a major dispute in the long run. Hence, we ensure that there is no lack of communication to disrupt the smooth functioning of the franchise.

3)Rising Costs: The expansion of a business by franchising has a final goal and much better financial prospects. That said, the process followed in attaining that goal takes time, patience, and facing multiple obstacles such as rising costs. This is mostly in the initial stage of expansion.

Many franchisors end up having unrealistic expectations about the payable fees for giving the rights to the franchisee. The process of developing a franchise is associated with many cost considerations that need a practical approach. It can be a mistake to ignore these costs.

Hence, when someone signs up for starting an insurance franchise with Superior Insurance, we ensure that the person knows the importance of capital for ensuring the effective growth of the franchise business. After the insurance franchise business is up and running, it is possible to increase and accelerate the growth after meeting milestones set by the franchisor.

4)Building a Team: The concept of turning a business into a franchise signifies that the owner is taking an entirely different position in the expansion process. From playing an active part in the business, the franchisor and franchisee have to work together to sort processes and strategize.

Franchising is more like a setup with regards to the recruitment and training of professionals. It is an important step in business expansion because the managerial tasks have to be delegated.

The management teams are an important part of building an organization and in the successful running of a business such as an insurance franchise agency, the empire builders must trust their team and delegate tasks. Growing a business should be as important for a franchisor as it is for the business.

When it comes to working with Superior Insurance, the authorities make sure that the franchisor builds a good team that is needed to expand the business. We offer all the support that is needed to hire and retain qualified and skilled professionals.

5)Growth and Investment: As new and strange it may seem, it is difficult to meet expectations in uncertain economic times. It is not wise for people who wish to grow their business. Things such as forming a well-developed system, growing it during adverse economic conditions, and making the most out of opportunities of growth are certain signs of a strong company.

It is very important to invest in technology and infrastructure while expanding by hiring people and allowing a smooth expansion of a company. An approach to continue all these processes for franchising under all economic conditions is needed for the company’s growth.

More than anything, the decision of continued investment during difficult economic conditions is also affected by pressure from stakeholders. It is therefore important to weigh the pros and cons while making intelligent decisions that require taking big risks.

We offer guidance and support to all the franchisors who decide to start an insurance business. This helps the franchisors in knowing all the details of the business while strategizing the steps needed to go ahead when it comes to growth.

6)Working in Agreement: It is necessary that the franchisors and franchisees work in complete agreement with one another. The franchisee should enable the business model of the franchise completely and protect the name of the company as well. However, this is a two-way street.

Genuine success requires the franchisor to offer support to the entire chain. This kind of support benefits the franchisees that eventually benefit the entire business franchise agency.

At Superior Insurance, this support is offered with different means such as holding training programs, learning from online learning modules, and offering additional efforts that ensure quality control and assurance so that there is uniformity.

7)Innovation: It has been established that an insurance business franchise can benefit from the success of its franchisees. Much beyond executing the franchisor’s business model, innovating things in the sense that there is a setup that ensures growth and implementation of innovative ideas is important.

Other than small businesses, the franchisees also profit from the execution of new ideas as long as it is ensured that agreement is being followed in all honesty. At Superior Insurance, the franchisors monitor the business model and follow it beyond acceptance so that innovation is welcomed as a source of profitability. Enabling innovation at the level of franchise develops a relationship of trust and also helps in maintaining harmony.



Any kind of business venture requires big investments, meticulous planning, and taking great risks. The entrepreneurs should be risk traders and dreamers for achieving more and becoming successful. Being conscious of all the obstacles mentioned above can pay off in the long run. Remember that victory comes only when you are fearless.