Considering the success rate of businesses across various industries via franchise route, business owners are increasingly opting for franchise route. Is franchising, actually a sure short formula for success. Majorly yes, but largely depends upon the fra
Franchising is not a sure short formula for success. It takes years of planning, strategy development and preparation to develop a business model. A franchise system is basically the brain child of the franchisor. A successful entrepreneur usually adopts the franchise model to expand his already established business and to take it to newer heights. However, few franchisors can also witness the collapse of their business if they have not handled the franchise expansion dedicatedly. The following article deals with the essential characteristics that any franchisor should imbibe to make his empire successful.
Franchisor: makes or breaks the business
A flourishing entrepreneur takes the franchise route for making his brand more famous and successful. However he can also see failure and destruction of his brand if he does not put in his best efforts to take it to the top. Let us discuss the various factors of franchising on which a franchisor has to work to keep his franchise system safe and sound.
Develop the franchise system: It is pertinent for a franchisor to build up a franchise strategy before taking the expansion route. The franchisor should consult other franchise experts for developing his business strategy and plans.
Select right franchise partners: Future success of any franchise brand depends on its franchisees. Therefore, a franchisor should be very careful while zeroing down on his franchise partners.
Adding local flavor: Another factor that decides up on the fate of any business via franchise route is adding local touch to it. Many franchisors remain strict in terms of maintaining the set standards of business. However it should be kept in mind that the demands of people change as per the region and state. Therefore it is essential to cater to their demands by adding the local flavor in it. This would be possible only through the local franchise partners as they understand the dynamics of local markets.
Develop a good franchise relation: A franchise system can only become successful if the franchisor has a cordial relation with all his franchisees. For this it is essential to make a franchise agreement, keeping in mind all factors that can lead to tribulations at later stages. The franchisor prepares the franchise agreements and takes care of every aspect to make the deal profitable for both the parties.
Maintain consistency in all outlets: It is the job of the franchisor to maintain uniformity in the design and layout of all his franchise outlets. He should keep travelling to all locations to keep an eye on the outlets and mark changes, if any. A franchisor has to keep in mind the local needs and demands while maintaining uniformity and standards of quality across his franchise chain. This is necessary as people already know the brand and therefore expect similar quality, services and ambience at each franchise outlet.
An extensive training module: The franchisor knows best about his products and services. It is his duty to transfer his expertise to the franchisees. This can be done by developing an extensive training programme for his franchisees as well as their staff. This would include a daily schedule, course material which is easy to understand along with practical lessons.
Satisfactory marketing support: Franchisors spend a lot of money on marketing their brands across the nation. But nationwide campaigns sometimes do not work effectively at local level. Therefore, a franchisor must guide his franchisees regarding the marketing strategy that help them build the brand on local level.
Marking franchise territories: It is the duty of the franchisor to offer exclusive rights to all his franchisees to sell the products or services within a particular geographic territory. It makes the franchisees safe from the competitive pressure, thereby making them more loyal to the brand.
Word of caution
Franchising not only involve appointing franchisees. In fact it is equally important to keep a regular watch on the franchised outlets. Franchisors often ignore their visits to the franchised outlets as they feel it is franchisees’ responsibility, but being the owner of the brand any form of brand dilution is not acceptable.
To conclude it can be said that however franchiseable the business concept is, it would only become successful when the franchisor sets his mind on it.