Anyone can set up a franchise if they want to, but not everyone will experience success. The question is why? What are the criteria that lead to franchise success?
Let’s face it, some businesses and some people have what it takes to succeed in franchising and this gives them a competitive advantage other the rest. They have the ideal franchise elements and have the ideal characteristics that help them to better navigate there pathway to success.
The Ideal Franchisor
In starting a franchise, having the four key elements of a niche product, widespread demand, simple and effective system, and a clear vision and plan are important. Ultimately though it is the person behind the business who will largely determine the franchise’s success or failure. The ideal franchisor must be have excellent people skills, a win/win mindset and the ability to inspire and motivate franchisees.
As a franchisor, you will no longer be working IN the business doing day to day operations, but instead you will be leading your team of franchisees, mentoring and assisting them along the way. Your focus is on the growth of the business, be it new products, new services, or research and development. You will also focus on building the brand and creating awareness and demand.
The Ideal Franchisee
There are also some characteristics that you should be looking for in franchisees. First and foremost you want a franchisee who is going to follow the business system you have created and not chop and change it as they see fit. Franchise success is based on the premise of replication so a franchisee has to be able to replicate your business systems and not reinvent their own. They need to have a ‘can do’ attitude and a willingness to learn. Finally they need to be hard workers. No business system, franchised or non-franchised, succeeds without hard work. There is no ‘overnight success’ and franchisees just like other business owners need to recognise this and manage their expectations. However if you combine a good business model, with strong leadership, hard work and replicable systems than success is just a matter of time.
The Franchise Institute helps small to medium sized companies franchise their business. Aside from explaining what franchising is and providing information on how to franchise your business, we provide full mentoring and support all throughout the franchise process. Call us to know if your business can be franchised and take the first step in growing your business.