How can franchisors and franchisees get along even better? Consider a few ways that either party can contribute to agreements by taking responsibility, managing expectations, and assessing core values beforehand.
Franchisors Meet Franchisee Needs
Deliver Value & Remain Humble
Franchise systems are successful when they reliably provide desired products or services, and this success stems not out of the franchise itself but out of its delivering value to existing markets. Thus franchisors interested in securing the success of franchisees must enter into stable markets with growth potential where consumers fuel a demand, where franchising as a distribution method can flourish.
By relying on valued products and services that serve viable markets, rather than on clout or a belief that brand integrity alone will support a developing franchise system over time, franchisors build stronger franchisee relations and make the integrity of their system trustworthy, one which potential franchisees can clearly put faith in.
Advance Training & Operations Investment
As the saying goes, putting the horse before the carriage can prove disastrous. This same logic applies to the franchise world. Franchisors who want to flourish, maintain a brand and give franchisees every possible opportunity to succeed must first invest in an effective training process for franchisees. This must encompass franchise concepts and aims clearly, providing the necessary tools to promote generally self-regulating franchisees. This is no small task, and franchisors who want to maintain amicable, profitable, and enduring relationships with quality franchisees deliver a sound basis for promoting the brand through a franchise system. This means planning years in advance, and continually revising as necessary to make an impactful training system that brings the concept to life for new franchisees. This makes creating strategies that much simpler over time for talented franchisees.
Franchisees Do Their Part
Clarify Your Purpose & Know Yourself
What do you really love so much about that hot franchise concept you are looking to invest in and what about your background, talents, goals, and strengths are aligned with it? Asking the serious questions before signing an agreement can save all parties involved from trouble and heartache if a franchisee realizes only too late how incompatible they are with the franchisor’s system. By bringing to light one’s own personal strengths and weaknesses, while comparing them to the demands of entering into a franchise agreement, potential franchisees can deeply assess in a realistic way whether the concept that has sparked their interest is an ideal investment opportunity, and if superior alternatives may exist that more firmly fit their principles. Better to research and perform serious introspective due diligence beforehand.
Be Ready To Deliver & Acquire Data
Investing in a franchise system is to benefit from a brand presence with recognized appeal, an established business plan, and a client base to go with it. Freedom and business management perks are not far behind. Franchising however requires just as much attention, energy, and balance on the part of franchisees as entering into a new business, without having to come up with a plan and a brand from scratch. This means that franchisees must come prepared to learn, integrate feedback, and perform based on specific criteria as part of the agreement. Likewise, franchisees must delve into the workings of their potential franchise system and acquire specific data about prior years’ achievements, the views of existing franchisees, and statistics that provide an accurate image of the brand concept to support strategies that make sense over the course of the agreement.