Qualities of a Good Franchise System
Successful franchisors have solid industry experience. They should be experts in their business. They are not looking for franchisees to have industry experience because that is their area of expertise. They are looking for individuals that can leverage their business skills developed from professional and personal experience.
Franchisors will be experts in training new franchisees how to develop the knowledge and skills necessary to ramp up and run their business model successfully. Typically new franchisees will go through training at the corporate location and/or in their local market anywhere from two to eight weeks.
Franchise support is provided on several levels such as ongoing training, new product development, and new technology. Good franchise companies are always evolving their system to keep ahead of the competition and stay ahead of industry trends.
Effective franchise systems will develop a collaborative dynamic not only between the franchisor and franchisees but amongst the franchisees to always be improving the business model and efficiencies. Annual conventions, mentoring groups, and advisory councils are a few ways franchisors support their franchisees.
Some industries need strong brand names to help with their success, others do not. There is a careful balance between having name recognition in your area, but having available territory. Many times by the time a brand is well known in your area, there is not open territories close by. Evaluating the track record of the franchise in new territories will be valuable in your research.
PROVEN SALES AND MARKETING SYSTEMS
Franchises should provide time-tested systems that fit their business model. Good franchisors have effective advertising materials, marketing approaches and know what media are the best option for their brand. If direct sales are an important part of their business model, training on effective networking and sales techniques should be provided.
BUYING AND PURCHASING POWER
By pooling resources from all the franchise owners, the franchise system should be able to achieve pricing on supplies, necessary products or marketing mediums greater than you could do as an independent business owner.
DEMOGRAPHICS AND SITE SELECTION
Franchisors should provide the demographics required to support a healthy business in their franchise. When the location for the business is key to success, expect the franchisor to assist in identifying and negotiating leases for the best locations.
Successful franchisors keep their business model simple, focusing on the activities that will make you the most money. They will also help you expedite your start up process.