Franchising your way to profits
At a time when the economy is on a downhill, franchising offers a great opportunity to expand and that is exactly what is turning people towards franchising. The following are the criteria that have to be fulfilled if you plan to franchise.
Branding Branding is imperative. If people know the brand, only then will they invest. Keeping it simple and easy to remember is the key and if you have a successful brand, then it is half the battle won. Since brands help visibility, it is best to see that the brand is suitable for national use.
A proven system Do your homework. Studying the market, learning curve, problems and their solutions is necessary and you should have a business model ready.
Historical trading performance There should have been sufficient trading to have allayed any doubts about a business model.
Products/services with good staying power No one wants to invest in something that may go out of fashion a year later. If your product has a guaranteed long life and fulfils a need then it makes sense for people to invest in it.
Corporate image A good brand, infrastructure and products is what inspires a good corporate image in the minds of a potential franchise. It is thus important that a corporate identity be developed.
Professionalism This can be seen from basic activities like picking up a phone and the quality of service provided. With professional services and management throughout, there develops a sense of security.
Sufficient profit margin Franchising is perfect for a high margin service. To sustain business growth while proving beneficial to both, franchisor and franchisee is the key. There should be a win win situation for both.
Management attitude Franchisees are not employees. They are self-employed individuals. They deserve to be treated as equals. A good management attitude towards franchisees will prove beneficial to the management in the long run.