Characteristics of a Strong Franchise
The Small Business Encyclopaedia defines franchising as: a continuing relationship in which a franchisor provides a licensed privilege to the franchisee to do business and offers assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration. When deciding on a franchise, there are definite signs that point out the stronger systems. Make sure you pair yourself with a franchise that will provide you with success, not headaches.
A strong franchise has a solid business system and proven business model. Scrutinize the daily operational tasks by looking at their payroll, the point of sale system, marketing and even the credit card machine. This is how your potential customers will interact with you directly. They will be the first to know if it isn’t executed right and you don’t want word to spread that using your product or service is inconvenient or sloppy.
Franchisees purchase an idea that has shown massive success, and that success is derived from the proven business model. It’s what makes a franchise…a franchise. The prospective franchisee has the option to choose which model they think will work best with their current skill set, but the choice should include a franchise that has both a strong model and system.
Innovation and adaptability are both good indicators of a strong franchise.
The consistent flow of creativity and the willingness to remain open is a sign that they are trying to keep their business relevant. A business that is monotonous will inevitably lead to bored and restless customers. It’s okay to have staples, however new items or offers will keep customers interested. Keep the franchise that has solid staples with an equally solid stream of fresh product or offers.
Other franchisees in your ideal system are your friends. Get to know them and seek their wisdom – this will undoubtedly erase the maybes on your list. Don’t be afraid to ask what they did to research and how their first year looked compared to their expectations. Does their personality match their ownership responsibilities? Who are you most like and are they succeeding or is their business struggling?
In this stage, you have to be honest with yourself and seriously question your next steps in the process. Franchisees in your community are sneak peaks into your own franchise ownership future –reflect carefully on what that could mean.
There is not such thing as a perfect franchise. There is, however, a specific concept that you can find that will align with your wants and needs. Look for the clear indicators and get out into the industry. The right franchise for you is waiting and FranNet is here to help get you started.
Do you feel like you’re ready to get started? Make arrangements to speak for free with one of our franchise consultants. FranNet is a franchise consultant company with a great track record of assisting individuals on their path to business ownership.
