As a franchise consultant, I believe that the Franchisor’s mind-set greatly impacts the success of the company’s franchise operations. Franchising is not a quick fix for shoring up your cash flow. Rather, it must be approached as a long-term strategic method of growing your company. We are going to review franchise operations fundamentals.
Further, we rarely recommend that you embark upon franchise operations until you have proven the viability of your business model.
Even if you believe your idea to be a slam-dunk candidate for successful franchise operations, it is tremendously challenging to persuade others to invest their money in franchise operations that have not yet been validated in the marketplace.
After all, one of the reasons for the success of franchise operations in general is the Franchisee benefits from the Franchisor’s learning curve.
Franchise Operations Fundamentals Steps
My many years of experience have taught me that the following are the steps in attaining success in franchise operations fundamentals:
- Put together a viable prototype that can successfully
- Sell your products/services
- Operate effectively
- Demonstrate the potential to earn a reasonable profit
- Make sure that you can duplicate your model, that is, in a reasonable length of time, teach others how to follow your business system
- Create a well-conceived, workable franchise operations program
- Determine if your planned franchise operations will produce sufficient funds to sustain your growth as a Franchisor. You must make enough money to underwrite the costs of your Franchisee support programs. If not, the entire enterprise will crumble
- Ascertain that your franchise operations will allow your Franchisees to generate sufficient profits to survive
- Carefully decide who you want to target as Franchisees and how to reach those prospects. Clearly, you will be best served by granting franchises to those people who are most likely to succeed, who have the necessary financial resources and business background and who share your company philosophy
As a Franchisor, remember that you will be dealing with two distinct groups of customers: your Franchisees and the people or firms who purchase products/services from your Franchisees. You must structure your franchise operations in order to meet the needs of both groups.
For you to achieve the greatest success with your franchise operations fundamentals, maintain an unwavering commitment to both your Franchisees and your Franchisees’ customers.
Thinking About Developing a Franchise Support System?
NFA Franchise Consultants have the experience to help businesses franchise. Just watch and listen to some of our client case studies and video testimonials. We can HELP YOU and it doesn’t cost anything to call and talk to us!
So, if you are still asking the “should I franchise my business” question over and over with no clear direction, give us a call at (706) 356-5637, or contact us through our online form. We look forward to helping you take your business to the next level and beyond.