Before examining why franchises fail, we need to consider why brands fail to establish themselves and grow in the right way.

These factors include:

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1 . Lack of vision, mission, and goals.

2 . High prices for goods and services.

3 . Failure to build customer loyalty.

4 . Lack of a properly planned supply system, both technically and logistically.

5 . A limited customer base due to a lack of product variety.

6 . A lack of effective marketing and advertising.

7 . Weak brand management.

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All these factors weigh heavily on our brands, leaving them caught between ambition on the one hand and the clutches of failure on the other. The ambition shared by most of our brands, through which they believe they will grow and expand—and even pique investors’ curiosity to try the same approach—is

to adopt a franchise model and search for

Other local, regional, or international markets then enter the franchise system and fail for several reasons, including:

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1 . The franchisor’s operations manual is missing or inadequate.

2 . The franchisor fails to continuously update the list of products and services.

3 . The franchisor and franchisee do not agree on spending the agreed marketing contribution—typically 2% of sales—on advertising and promotional campaigns

in the local market, while the franchisor is responsible for advertising and promotion globally.

4 . The franchisee lacks proper financial planning and relies on the franchisor’s financial plan, which is usually based on circumstances that are unsuitable for the franchisee.

5 . The franchisor’s failure to account for differences in food culture across countries.

6 . The franchisor’s failure to provide purposeful, targeted training.

7 . A weakening of the relationship between the franchisor and franchisee.

8 . The franchisee’s lack of mental and intellectual preparedness.

9 . The absence of an institutional framework encompassing the key departments on both the franchisor’s and franchisee’s sides.

10 . The franchisor’s failure to fully understand franchise culture, and the franchisee’s failure to understand it by at least 50%.

11 . Lack of ambition to expand and grow on the part of both the franchisor and the franchisee.

12 . Over time, the franchisee fails to adhere to quality standards, while the franchisor fails to provide oversight.

And so the cycle of thwarted ambitions continues. Our brands find themselves left behind by progress and prosperity, searching for a solution that can only be found in the

first square (the square of logic and ambition), through which they are meant to build themselves.