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Successful Steps in Franchising Development

Successful Steps in Franchising Development-1


Both franchisors and franchisees need to have a number of aspects in place if they are to achieve their goals.  Below some are summarized.

Companies looking to branch out into franchising must ensure that they have a strong team in place with some of them having had experience in the franchising industry. A strong team will enable the franchisor to be able to structure and market itself in a way to quickly attract franchisees to the business.


Successful Steps in Franchising Development-2Having their financial house in order before the search for franchisees starts is also important to the success of franchisors. As potential franchisees carry out research of the company, they will be looking for franchisors to have a secure financial base and a record of spending money to help develop parts of the business that need improving.

Adequate funds also are required to provide the training programs, support systems and other necessities that franchisees will need.

Once in operation, the reputation of the franchisor will be vital for it being able to continue to attract good franchisees.  For this strong communication is a must.

Franchisors should be in contact with franchisees at regular intervals, ideally through a structured franchisee advisory committee, to ensure any problems are dealt with quickly and that the business structure is being properly carried out.


In addition, there should be regional and national meetings so that franchisees can network with each other and any new franchise developments can be explained to one large group, instead of having to do it individually.

The franchisor must ensure that it complies with all regulations that govern its business, and communicate these regulations and its company rules plainly to franchisees before they sign an agreement so there are no surprises. 

If all this is in place, then franchisees will have a great platform to succeed. However, there are no guarantees and they must make sure they are able to carry out all necessary duties.


Successful Steps in Franchising Development-3Franchisees must also be in contact with the franchisor on a regular basis to discuss the franchise's development and curtail issues.


Similarly, as franchisees are in charge of their individual unit(s), they need to be responsible for having a good daily structure in place to ensure time is not wasted, which includes planning ahead for new developments and seasonal factors.

They also need to be able to market the business effectively, through local publications, flyers and talking to people face-to-face, with the results used effectively to change things in order to attract more customers.


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