The Human Genome project, a rapidly developing area of genetics, is the subject of much conversation today. In classical genetics, the genome of an organism is a complete genetic sequence on one set of chromosomes. The ability to understand these building blocks of life will lead to medical breakthroughs that will transform our lives in the future. Metaphorically speaking, a “Franchise Genome” could be viewed as a manifestation of how a franchisor’s DNA can be sequenced, understood, and passed along to franchisees.
Traditionally, a franchise company is given birth through the backbreaking work of its founder. It is not uncommon for the founder to toil for years to refine the business model into a successful business. When deciding how to leverage all of this hard work, acquired expertise, and success, franchising emerges as a viable alternative for expansion.
One of the most difficult challenges an emerging franchisor faces is transferring the core business expertise, values, and vision (the DNA of the business) to a newly recruited management team who in turn train franchisees. Although the founder may be skilled at managing the core business, franchising is a different animal. The same skills that lead to the creation of the successful core business do not necessarily translate into the ability to grow and manage a successful franchise company. This bifurcated world creates challenges for new franchisors as they attempt to expand the franchise.
Emerging franchise companies can expand their business model internally, through direct franchising, or externally through an area representative. Successfully expanding a business model through franchising is dependent on how well the DNA of the business can be replicated and passed along to franchisees. Choosing the right expansion strategy is critical.