Every franchisee wants to purchase the perfect franchise business. Doing so would stack the odds in their favor by giving them an immediate return on their investment. However, while this may seem like a dream we all could share, where is the fun in all that? An environment without risk tends to be somewhat stale and boring. So rather than striving for perfection, one should strive for success. Here to lend some advice with that is a list of five indispensable elements for building a successful franchise.
The Business Model
The business model is the means by which the chain develops customer relationships in relation to their competition. For example, consider what McDonald’s has done over the years: they built their reputation on quick service and inexpensive food in relation to other restaurants. Consequently, this inspired an entire industry that focuses on different styles of food: Taco Bell, KFC, Dunkin Donuts, etc. Each of these franchises has altered their menus over time in accordance with the preferences of their customer base. As the McDonald’s example starkly demonstrates, developing the proper business model in regards to the industry one is operating within and the customer base they are catering to is a crucial component of a successful franchise model.
Constant Innovation
In today’s instantaneous business environment, innovation has never been more important. What’s more, this innovation must be considerate and constant in order for a franchise to achieve true success. Obviously, this puts a lot of pressure on the corporate office, which is why it is essential to make sure you are working alongside talented individuals who can generate innovative ideas under pressure. For example, many fast food franchises today have caught on to the fact that customers appreciate normality and consistency while simultaneously taking opportunities to branch out every once in a while and try something new. Let’s return to our McDonald’s example. When you go to McDonald’s, you have the choice between staple items alongside brand new selections. This model has worked to such great success that it has been implemented in other fast food chains around the globe.
Franchisor, Franchisee, and Employee Training
As a successful franchisee, you will need to understand everything about your business. This is going to require comprehensive training on part of your franchisor, which you should absolutely take advantage of. The goal here is to learn as much about the daily operations of your franchise business as possible. Exemplary training will help you navigate through most of the problems you will face as a franchisee, which will consequently ensure the overall success of your franchise business. Even more, as a franchisee, you are literally paying for the franchisor’s business expertise, as well as striving to perpetuate their business model.
As a franchisee, another area to keep an eye on is the wealth of other franchise owners. More specifically, it’s the top earners. Finding this out and getting a better idea of how they orient their daily operations in a way that maximizes their profitability.
In terms of the workforce, you will want to make sure that your employees have enough working knowledge of the business’s daily operations that they can provide outstanding customer service, ensure that daily operations run smoothly, and work to secure a loyal customer base.
How Well Known is the Brand?
As we well know, every franchise possesses an established brand identity, hence why we buy into them in the first place. As a franchisee, you are purchasing a proven business model. And therein lays the key. Prior to purchasing the franchise, you should do some research into how well known the brand is. The goal is to purchase something with a recognizable name and a good standing in the public sphere. For example, everyone knows what McDonald’s is, whether or not they would eat there, and what they would order if they do.
Brand names aside, do keep in mind that larger franchises can be difficult and quite expensive to purchase. You may want to do a quick online search to see if any branches are available in your desired locale. For example, searching “franchises for sale in Las Vegas” or “franchise opportunities Los Angeles” will yield information on either of those two locations.
Following Procedures
Following procedures is both effective and relatively simple, as the franchisor has already laid most of the groundwork for your success. This groundwork includes developing company-wide standards and defining the brand in the public sphere. All you have to do is follow the rules, adhere to their standards, and engage in some preventative maintenance from time to time!
