What Makes a Franchise Good?
A good franchise opportunity is not just about having a good idea!
For a franchise to be good enough for you to invest in, the franchisor has to prove that the model can be replicated. The franchisor has to demonstrate that it possesses the financial resources in a balance sheet and surrounds itself with the human resources necessary to develop the infrastructure to ensure growth of the brand.
Besides delivering a product and service that is and will be in demand, a good franchise system will:
- Have a passion and dedication to the business!
- Offer distinct advantages over the competition - USP's that will ensure franchisees are competitive within the sector.
- Provide a proven/piloted concept prior to franchising and as a result should have historical figures or track record to demonstrate the success of the business model.
- Operate successful company owned stores.
- Provide the framework for a profitable and sustainable business.
- Offer a fair and balanced franchise agreement.
- Identify a protected territory for the franchisee.
- Clearly state beforehand what support is provided to franchisees to help get them started i.e. assistance with premises selection, lease negotiation etc.
- Develop a comprehensive training program that is long enough for franchisees to learn the business.
- Publish comprehensive operations manuals.
- Trademark the Brand.
- Demonstrate their commitment to the ongoing development of their franchisees and franchisee profitability.
- Provide ongoing research and development in order to ensure the growth of the brand.
- Commit to providing a dedicated support infrastructure to support franchisees in the development of their business.
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