Eight common reasons why franchises fail Ethel Nyembe Buying a franchise doesn’t automatically guarantee success; commitment to developing the skills needed to manage a business is key Aspiring entrepreneurs who want to avoid the high risk of failure associated with small businesses often look to franchising, assuming that a recognised trademark and support is a guarantee of success. Although it is true that franchises have a higher success rate, it is not true that they cannot fail. As it is the case with other businesses, there are several reasons why franchises fail, says Ethel Nyembe, Head of Small Enterprises at Standard Bank. “Enhancing your chances of becoming a prosperous franchisee can depend on addressing the common issues that can impact on a franchise by addressing them upfront.” “One of the primary reasons franchises fail is because potential franchisees often rely too much on the professional assistance and systems supplied by franchisors. If you are going to ...