Signing up with a franchise is designed to be an instant win. You receive an established name, method of producing a product or service, and additional support from the head office. Due to this, when a franchise fails there are a handful of different reasons as to why. Outside of problems with the corporate office and bad press for the company itself, the reasons behind these fails are specific. At Samurai Sam’s®, we want to help make sure you avoid these kinds of errors. So, before moving forward with a franchise, here are some of the top reasons why a franchise fails and how to avoid them.

  • Lack of Experienced Business Acumen
  • Understanding the Commitment
  • Bad Location


Perhaps you walk into a restaurant or store and see a sign indicating information about starting a franchise. It sounds like a good idea so you move forward with pursuing the new business. Problem here is while the franchise has safety nets and is designed to be successful, if you don’t have any experienced business acumen you’ll often struggle. It is imperative to have the necessary business skills to run such a franchise. Now, corporate can help you out, but most often it is very limited help. That is what separates Samurai Sam’s franchisees. We can help you by providing the necessary training, tools and data to help maximize your achievement of a successful outcome. We want to make you successful which is why we can help with every aspect of running such a business.


One of the biggest problem starts with your mindset. You see a successful franchise. You decide you want to join in and open your own. Naturally, the brand name sells itself and all you need to do is kick back while the cash flows in. Not exactly. Far too many people underestimate the level of commitment it takes to start and run a franchise. The first few years always requires more work as you get everything up and running, but even beyond the first year, you’ll need to stick with it and continue your level of effort. Now, it will become easier as you learn the trade and an understanding of what’s going on. However, don’t expect it to be a cake walk. We want you to know just what it takes to run a business. Which is one of the main services we offer.


This is true for just about every single business: location, location, location. Sure, one spot on the other side of town may cost far more in rent, but if nobody knows about your business, it is in a poor side of town or foot traffic is poor, you’ll likely run into financial problems. A quality location more than makes up for higher rent. Often times, a franchise stands back while you make the decision on location. With the necessary consultations from real estate experts, you’ll help discover the perfect location for your franchise.

Now, with this said, make sure to not go overboard with rent. You don’t want to start out so far behind the eight ball that it is impossible to pay any of your other bills. You want your rent to be below seven percent of revenue. This may mean you’ll need to skip out on the very best location, but there probably is a secondary or third option that fits in the budget. Again, we can help with this.

These are just a handful of the different reasons as to why your franchise might fail. At Samurai Sam’s®, we want to help you avoid these kinds of issues, which is why we are here for you and your business every step of the long journey.