5 Ways to Get a Franchise to the Top and Keep It There
Franchising has become a popular investment concept, judging by the big names opting to take this route. Recently, several brands have chosen it as their preferred means of expansion into various parts of the world.
As presentable as you may look in your custom suit and your perfectly coiffed hair, those enhancements will not make up for lack of dedication and a hunger for success. That is to say, not all franchises will work well, and even if they do, not all branches will report positive results.
What, then, makes for a successful franchise? What characteristics do thriving franchises have in common?
- A Lucrative Business Model
Your business model has to be right for the people you are targeting. Looking at McDonald’s and KFC, for example, they deliver reasonably priced meals in locations that are easy to find. They also offer fast service to people who are likely on their lunch break with little time to burn. This is in comparison with pricey restaurants that need to prepare meals as the client waits.
- Franchisees with the Right Attitude
You cannot just accept any potential franchisee who walks into your office and allow them purchase the rights to your franchise. You will need to choose franchisees who have the right attitude. Your franchise should be all about business, and so you want to choose franchisees who are hungry for profits. You’ll need franchisees with business acumen in order for your brand to survive. Simply bearing the biggest name in the fast food business does not guarantee you success.
- Location Is King
Franchise locations matter. You want your franchise branches to be close to your niche clientele so that they can be competitive. If you are going into a new country where there are no other brands similar to yours, you will have the advantage of securing the best locations. If you’re franchising fast food joints like McDonald’s, you’ll want your branches to be in central business districts where most people will access your products and services during their lunch breaks.
- Pay Attention to Market Saturation
It goes without saying that the lower the degree of market penetration, the higher your chances of growth. Those brands that are just getting on the market have a greater chance of succeeding than those names that have been around for decades.
- Train, Train, and Train Some More!
Training is the undoubtedly the most important ingredient for success. You want to be certain that your franchisees are on track with updated systems and processes, as well as any new products your branches can offer. As a brand, you stay ahead of the competition by bringing new items to the table. Every branch of your franchise should be aware of changes and able to implement them simultaneously.
Build a Family and Stay Connected
The entire franchise is one big brand, so staff members at the home office and franchisees should stay connected. None of them should have to feel as though they do not belong to the larger family. Even though the branches are essentially owned by separate entities, they all remain under the umbrella of the franchise.
