Qualities of a great franchise
If you think that deciding whether or not to be a franchisee, is tough then hink again, because deciding on which franchisee to buy is even tougher. Your entire business depends on the franchise you select, one mistake here and you will pay for a long time. Also many people can’t afford to go wrong in their business when they are investing huge amounts of money, hence selecting the right franchise is very important. What are the traits of a great franchise? We tell you……
• Professional Interaction Keenly observe all the interaction that takes place between you and the franchisor. Through these interactions, you will be able to judge the style and functioning of the franchisor. Also you will be able to judge the franchisor professionalism. See in how much time he answers your queries, notice the manner in which he answers those questions.
• Business plan Go through the franchisors business plan and also check whether he has the required resources to execute that business plan. A good business plan with adequate resources is a healthy sign.
• Franchisee Satisfaction Try and interact with the current franchisees and judge their level of satisfaction. A good franchisee satisfaction level is the best way to judge a franchise business. Franchisees will only be satisfied when the franchisor is providing them with good support which ensures smooth running of the business.
• Service Thoroughly analyse various services and support that the franchisor offers to his franchisees. These services form the back-bone of the business. These include legal help, help in training and recruiting staff, managerial advice and many more. Only strong service and support can ensure a great franchise.
• Systems and Method Also one should have a good look at the systems and processes put in place by the franchisor to ensure smooth running of the business. Streamlined processes help a great deal in running a business efficiently. So analyse the systems and processes of the franchisor in detail.
• Multi-Unit Franchisees Multi-unit franchisees are those franchisees who own multiple units of the same franchise. The number of multiple unit franchisees is a great way to judge the franchisors business because any franchisee would only own multiple units when the business is reaping rich profits for him/her.
• Market Research culture Today’s market place is highly dynamic and in such a market place, tastes and preferences constantly keep changing. Hence it is very important for the franchisor to develop a culture of constant market research in order to adapt to the changing preferences. Good market research will help fulfill the consumer’s needs in the best possible manner.