Why Your Franchise Business Doesn't Make Money

Posted by Jim Otto on Mon, Jan 16, 2017 @ 12:01 PM

Notmakingmoney2.jpgAs the Director of Franchising here at Shear Madness Haircuts for Kids, one of the first questions I usually get asked is, “How much money can I make?” My response is always muted because the FTC doesn't allow us to answer that question. However, for those of you reading this who are new to franchising, you can find the answer to that question in the Disclosure Documents in Item 19 that you receive from a prospective franchise. Also, some franchises may choose to disclose those numbers but have the right not to, so that really depends on the franchise you are looking at. But at the end of the day, my typical response is to answer a question with a question, which is, “How hard are you willing to work?”

Most franchisors will tell you that the biggest variable in any franchise system is the owner operator. Take Shear Madness Haircuts for Kids as an example. The store was opened by Paula Thurman in 1997. Since then, Paula has run the concept in many different economic environments, all kinds of weather and all kinds of major events. Through it all, the store has made money! But the bottom line is it still took hard work and perseverance. From moving the location three times to, to staffing the store properly, to delivering the kind of customer service that all small businesses need to deliver. This brings me right back to the question I get asked in regards to how much money can be made at running a franchise. I'm not trying to over simplify this in any way or tell you that any one concept or system is perfect - including ours at Shear Madness. What I am trying to tell you is that regardless of the franchise you select, it's going to take a lot of hard work, a lot of perseverance, and maybe a little luck to succeed! So the answer to the question of “how much money can I make” always begins with the owner and operator of the business. Unfortunately, franchising is not a failsafe business model, and it will still rely on the concept, location, marketing and many other variables for the business to succeed and prosper. But the most important factor is the owner operator, and that could be why your franchise is not making money!

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business that provides a positive experience in helping children and their families? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

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Topics: franchising, franchise success, Shear Madness Haircuts for kids, franchise ownership, how to franchise, Business Tips, business growth, small business how-tos, business success