If you are betting on this model to grow, take into account six factors that will influence the success or failure of your project.
Turning your business into a franchise can be the best way to expand your brand. With this model you can take your products or services to other territories, without having to worry about the daily operation or other issues such as the selection of employees and the maintenance of the premises. However, not every successful business is transformed into a successful franchise . Why? In large part it is due to a poor choice of franchisees , but also due to the lack of an adequate organization (which includes repeatable processes) or the lack of a brand that is valued by consumers.
If you are betting on this model to grow it is important that you are guided by an expert consultant, but also that you take into account six factors that will influence the success or failure of your project. Take note:
1. Focus on an emerging market
Another cupcake shop? A “new” cafeteria and bakery? A business more dedicated to millennials? If your business does not seek to meet the needs of a growing market, but little exploited, perhaps turning it into a franchise is not the best option. There are certain sectors where competition is very strong and demand is not so high; Identify if your company is in one of them or, on the contrary, serves consumers eager for alternatives. For example, a service or product aimed at the senior market could be a good option, as it is a group that will grow exponentially in the coming years.
2. Develop a quality product or service
It is clear that no company survives unless it has a product or service that is attractive to consumers and for which they are willing to pay. No marketing strategy, public relations action or incredible logo can save a bad product. So if you want to create a successful franchise, make sure you have a value proposition and a differentiated product or service that can also be replicated in different territories.
3. Make your franchise number one
For franchisees! Consider that this business model depends on your ability to select and train those who are determined to pay the initial fee and the royalties you demand. Keep your documents in order and create a realistic and attractive offer. Make sure you always meet the expectations of your partners and listen continuously. A successful network depends on communication and sharing values and vision. Your franchisees will always be the most valuable: make sure you foster win-win relationships and assure them that they are part of the best company in that industry.
4. Establish a strong brand
It does not help to have the best product if you do not create a powerful brand that supports it and increases its reach. The creation of the brand ranges from the appropriate selection of the name to the definition of an attractive and well designed logo. But branding goes further: your brand is made from your people, so you should always choose the best and offer development plans and rewards that allow you to retain them.
You should also look carefully at your service, as it is what the customer values most. Finally, accompany all this of a good marketing and advertising strategy that manages to convey your message, position your product and create a connection with consumers.
5. Allow the independence of your franchisees
Micro-management is terrible in any company, since it inhibits creativity and productivity, generating only wear on the manager. In the case of franchises, this is much worse. While you must have manuals (after all franchisees pay for it) and a clear address, you must allow them to make decisions and propose solutions. Remember that for this to work you must choose franchisees who are entrepreneurs: daring, purposeful and eager to have a successful business. Let them work and run their business in their own way, and invite them to propose improvements and ideas for new products.
6. Take advantage of local expertise
When you create a franchise, you are opening up to lose some control and let others operate part of your business. That's fine, and it's much more profitable if you boost business relationships between the company and local suppliers. Each territory is different; there are different challenges and consumers are not the same either. So as part of your business culture, invite franchisees to do business with local people. It favors the construction of relationships and the selection of the best suppliers. This will not only enrich your brand, but also each community in which it has a presence.