Franchising is where an established, successful business model and name is granted to a franchisee, in return for an investment and a share of their profits. It’s a popular commercial strategy that has been used around the globe for many years. A large number of recognizable companies franchise out their name. McDonald’s, Subway, Supercuts and Anytime Fitness are just a few.
It is a way for a franchisor to build their business without opening chain stores, which necessitate investment and involve increased liability. The franchisee usually also pays an operator fee to the franchisor, who is their supplier. There are clear benefits to companies that franchise out their business model, but what are the benefits to a franchisee?
The Benefits of Running a Business Franchise
a. Incentive: Unlike being an employee, a franchisee’s income is not
finite. This means the more money you (as the franchisee) bring in, the more you take home; so there is a real incentive to work hard and succeed.
b. Established name: This means that people already trust your brand and the products or services you offer.
c. Fast start-up: When compared to starting up a new business from scratch, opening a franchise takes very little time; meaning you can start earning sooner.
d. Established guidelines: Having guidelines and processes to follow helps individuals and teams get straight to work in a new franchise, without the teething problems and uncertainty faced in most new
e. Support network: Because a franchisor benefits from your success, they will usually provide a solid support network to help you in whatever way you need.
There evidently are significant benefits to running a franchise of a well known business, but of course a successful business model does not always equate to franchise success. Ultimately everything depends on the franchisee and their business acumen, so at this point it would probably be prudent to examine how to be successful in the franchise world.
8 Result-Oriented Ways to Make a Business Franchise a Success
Here we come to the focus of this article: how you can make your business franchise a success. Of course there is no secret path to instant riches, but if you follow these tips you will have a very good chance of making your enterprise work.
1. Research the company
If a company grants franchises, then they should be able to provide you with copious amounts of information about their business model and the franchising process. This should give you a good idea of whether a particular opportunity appeals to you.
2. Contact other franchisees
A great way to discover more about a franchise opportunity is to speak with existing franchisees. They might be able to tell you how successful their location is and whether they are happy with their franchisor. They might even have some valuable advice to impart before you make a decision on investment.
3. Know your area and market
Location is of vital importance, of course. This means you should thoroughly research an area where you are considering opening a franchise, to estimate the amount of trade you will get.
4. Take training seriously
Most franchisors offer comprehensive training programs, and if you want to be a success you should pay close attention to every aspect of yours.
5. Follow guidelines
As mentioned, a benefit of franchising is that there are already guidelines and processes for how to run a franchise. It therefore makes sense to follow these guidelines as this is an established recipe for success.
6. Seek help when needed
The more profit you make, the more profit the franchisor makes. This is a huge incentive for them to help you as much as they can to make your franchise a success. A franchisor is dependent on people like you making money, so if you are not, or you need assistance to help build your enterprise, you should seek it without hesitation.
7. Work hard
As always, there is no success without a lot of hard work. A successful business model is nothing without a willing team putting in some hard graft. Hard work is an investment and one that should pay off, if you follow these guidelines.
8. Think big
If you really want to be successful in business, which of course you do, you must think big. The business titans of today (and indeed yesterday) didn’t achieve what they have with modest goals. So first of all, aim to make your franchise a success, and then consider investing in a second, a third, a forth.
In conclusion, there are many business franchise opportunities available today in everything from cleaning services to fast food, so explore the possibilities and consider whether franchising could lead to a lucrative future for you. Good luck!