You are currently viewing Top 10 tips for growing a successful franchise

Top 10 tips for growing a successful franchise

A franchise business is probably as hard as creating a goodwill. Afterall it’s ultimately the goodwill that people identify with! Every franchise business like KFC, McDonald’s, Pepsi, Burger King and so on works on the model that it has something worthwhile to offer to its customers irrespective of the language, culture, or geography the latter may belong to.  That besides, there are other factors that help grow a successful franchise. We mention ten important ones below.

  1. Gain experience

An idea turns into a successful franchise ONLY when its originators have the right experience in every aspect of its working, be it with respect to marketing, production, service, after-sales, finance or even managing people. A fresher never made a great franchise owner as such a person never know the pitfalls and how to over come them to reap the benefits that the business has to offer. It thus makes sense to first gain the right experience for the right period of time, and only then start one’s concern.

  1. Identify a successful business model and money flows

Franchise could be only of the idea or of the entire concern right from the look and feel to the product. The difference can be attributed to various reasons including the type of business, the likely clients and audience, and to some extent the kind of financing options and organization structure being planned. Where the franchise is for the sake of earning only money, it can sometimes even be an outright sale while at other times, it could be about leasing the idea with or without the brand-image. Either ways, the franchise owner needs to be clear with what they want and their relationship with money.

  1. Create a viable brand that people identify with, and would like to be associated with

The thing that brings immense success to any franchise ownership is the sense of identity clients and customers have with the brand. A KFC, McDonald’s, Subway and Starbucks sell because the brand can be identified worldwide with quality and service. It thus makes sense to first identify a product and then burnish it with a logo, a tagline, and a plausible story around it for the world to identify with.

  1. Sell your business in the right circles

Ideas can be sold to individuals in the right circles. The examples suggested above (KFC, McDonald’s, Subway and Starbucks) are for the well-to-do whereas a Target, KMart, Sears or Walmart identify with the not-so-well-to-do. Trying to sell franchise business in the wrong circles could bring harm to everyone including the brand itself.

  1. See something that is unique

The franchise-owner has to have something that remains unique in their offering to the clients. A Levi’s always stood for rough and ready clothing that could take a lot of hammering. KFC stood for crispy wholesome crunchy chicken. Pepsi and Coke signify taste. A franchise-owner thus has to find something unique to offer to its clients and thru them to the franchisee.

  1. Make the franchisee understand the relevance of the business

The franchise owner shall have to make the franchisee see the advantage of taking a ready-made brand as compared to creating one afresh. The former would have most things ready as compared to starting everything afresh where it may take years before success of a measurable kind can ever be gained.

  1. Train the franchisee in every important aspect be it operations, marketing, or sales

A franchise owner who cares to train the franchisee in important aspects of business including operations, customer service, marketing and sales would help bolster the latter’s ability to sell the right ideas to would-be clients. This may have to be done at regular intervals to reinforce the idea and cement it.

  1. Never give up on marketing and innovating

A franchise owner who sits tight after selling an idea could be the cause of its untimely ruin and demise. Ideas that sell, irrespective of models, need to be worked upon with innovations and newer ideas that include newer business ideas and lines.

  1. Take back the franchise where the dealer does not perform

One of the worst ways to see a brand slowly disappear is to let it be ruined slowly by non-performing or badly-performing franchisees! It’s the latter who would ruin the name and reputation of a brand if the same is not taken from them at the earliest.

  1. Respect your brand!

In the end, it all boils down to a franchise-owner respecting his/ her/ their brand. One works hard to create and consolidate a brand- almost like bring up an orchard with the right fruit-giving trees. And one of the best ways of depleting it is by not caring enough for it.