Many business owners are aware of the benefits of franchising – faster growth, national and/or international brand recognition, steady revenue, and so on. Unfortunately for some, this isn’t always the case. Franchises can fail for several reasons, including market saturation, having a weak marketing plan, or choosing the wrong location. If you want to own a successful franchise and secure long-term business growth, then it would be wise to be thorough in every area of its development, from legalities and procedures to the recruitment of the franchisee.
Develop a good plan for marketing. Do this with the franchisee. Create a plan that spells out how, where and when the franchise will operate. Although you will be expected to integrate the venture into your national marketing and advertising campaign, the local promotions are usually the remit of the franchisee.
Choose the right location. Although your brand will already be established and well known in your region, choose a locale and position the new business where it is likely to attract the most custom. The franchisee will find it difficult to promote the business in an isolated area or in a saturated market.
Provide appropriate training and support. It might be tempting to offer a quick, intensive course to speed up the franchising process and save money on training. However, it could slow the process down as the franchisee may continually make mistakes that need to be rectified, thus costing valuable time and money.
Simplify your systems. Is your business model easy to replicate? You may know the workings of your model backwards, but that’s not to say a franchisee will be able to operate the systems as easily as you do. Don’t make the mistake of doing the initial training then expect franchisees to learn from an instruction manual.
Select the franchisee wisely. Franchisees should be focused and driven to achieve success. They should have the skills necessary to reproduce your business model, deliver a business that is representative of your brand and its integrity, hire and manage their employees, and be able to promote the brand to their local community.
Draw up a Franchise Agreement. This will ensure both you and the franchisee fulfil your obligations, legal and otherwise. Seek professional advice (including professional help for drawing up a comprehensive marketing plan) to ensure you have all bases covered, including franchising laws of other countries and protecting your trademark.
Follow these simple steps and you will increase your chances of success with your franchise.