There are many aspects that play a role in the success of a franchise and we look at some of the qualities that a successful franchisor will possess. This is relevant to businesses that are considering the franchising route to expand and to prospective franchisees that are looking to buy a franchise.
- A Successful Track Record
If it is a start-up franchise, the franchisor must be able to prove that the pilot franchise has a defined and proven method of trading, evaluating each activity, result and challenge to ensure that it can be a success.
If it is an established franchise, the success must be proven and the franchise must be credible, unique, replicable, providing an adequate return for franchisees. After all, this is the reason why potential franchisees invest in a franchise, rather than start a business from scratch.
- Strict Franchisee Selection
Franchisees have a major role in determining whether a franchise will be a success. Successful franchisors take a longer-term view and are very selective in choosing franchisees that are financially, mentally, and emotionally capable of running a business and will fit in with the culture. These high standards benefit both the franchisor and the franchisee and sets the franchise up for success.
Support is more than offering franchisees a brand name and a proven business model. A full initial and on-going training programme should be in place covering topics such as marketing, recruitment, business management, as well as any necessary operational and technical guidance. Franchisors should also assist with site selection and financial advice.
- Encourages Open and Honest Relationships
The franchisor must create a relationship of mutual trust and respect with each franchisee which encourages open and honest communication. A franchisee must have confidence that the franchisor is truly committed to providing support so that success can be achieved. A franchisee also needs to feel comfortable enough to share any ideas they have without fear of not being taken seriously.
- Maintains Brand Consistency
Brand consistency attracts both new franchisees and customers. The more uniform the franchises are, the greater chance of success for franchisor and franchisees alike.
As a Franchisor: – Does your franchise offering possesses these qualities?
As a Franchisee: – Does the franchise opportunity you are considering possesses these qualities?
SA Franchise Brands