The 7 Characteristics of Your Perfect Franchise

7 Franchise Characteristics | Franchise Coach

William Penn said that “Patience and diligence remove mountains.” If you’re seriously considering franchising, you’re looking for the perfect franchisor to partner with. But that would not be enough because it is vital to check if the business has franchise characteristics that you are looking for.

Sifting through the ocean of information about your options can be a daunting process that requires patience and due diligence. The same goes in finding the right one out of 4,000 concepts can be challenging.

But the good thing is if you thoroughly research franchise characteristics makes it easy for you to find. And could even lead you to choose a highly profitable one.

7 Franchise Characteristics You Should Know

After you sign a franchise agreement, renouncing is no longer an option. You will not regret it in the future if you will do careful investigation in the first place. Your investment cannot be wasted in any sort so searching for the perfect one before signing in is very important.

1. Solid Concept

When choosing a franchise, the first question is- “What do they do?.” The answer to that question is the concept. This can be anything from the following examples:

Water Restoration
Business Coaching
Painting
Gym

The possibilities are endless. Once you know what the organization does, the next question is: “Who does it serve?” Your answers above might change to the following:

Residential Water Restoration
Executive Business Coaching
Commercial Painting
Personalized Training

Beyond the market designation, a franchise might have a unique hook or angle that makes it one of a kind.

The following are examples of the concepts:

• The water restoration company might offer 2 hour response time at any time of the day or night.
• The business coach might specialize in helping companies in “transition.”
• The painting franchise might leverage patented technology in its process.
• The gym might specialize in training clients over 45 years old.

In each case, there are defining franchise characteristics that help make a business unique.

As a consumer, we’re already aware of concepts. But as potential investors, we’re looking deeper at what makes a concept unique. We want to know how it’s implemented, and how it provides a satisfying experience to the customer.

What would make our franchise gym better than the other gym that’s half a mile away and that has been in business for decades? What does that gym offer its clients to maintain their loyalty?

As a potential investor, you should know what makes the franchise special. As you explore franchise opportunities, you may choose to eliminate a whole number of candidates based on industry and concept.

For example,

Some people are not interested in working in the food industry. This takes several hundred franchise possibilities out of the running. Some don’t want to be responsible for a retail outlet and the investment that entails. This would eliminate many more franchise concepts.

It’s good to set clear parameters regarding what kind of businesses you don’t want to consider. Just be careful not to dismiss too many possibilities out of hand. In my experience, many franchisee candidates choose the option that was originally their last choice.

The key at this beginning stage is to be able to identify a concept that benefits all the parties involved. In an ideal situation, the franchisor has a winning idea that grows and makes a profit.

The franchisee finds a way to leverage his or her business acumen to help further build the business and earn profits, and the customer receives good quality services or products.

If your concept is to win, then it’s time to move on to the next characteristic- the franchise’s business model.

2. Effective Franchise Business Model

Before assessing any franchise investment, ask yourself: “How does the franchisor provide its product in a way that it can replicate success in each new unit?” Or, “What is the franchise business model?”

When we refer to these systems, it is about how the franchising organization achieves its goals through daily business activities.

Franchisees should know how to:

• hire
• train
• purchase
• market
• deliver products
• make bills
• use technology

These skills are essential. Gain more knowledge of individual franchise brands. You should be impressed at the efficiency and comprehensiveness of their systems.

Successful franchises have a rich system with simple processes. You should see consistency from one unit to the next in terms of marketing, responsiveness, product offerings, and professionalism.

At first glance, you won’t know the details of a franchisor’s systems. But you should understand its efficiency and capability while investigating the company.

Can you appreciate how the franchisor, franchisee, and customer are all succeeding? Do you feel you could trust this organization if you were a potential customer or franchisee? The success of a franchise is rooted in the systems. The franchisor has in place to ensure quality and consistency from each franchisee.

3. A Good Franchise Training Program

The franchisor’s most important role is as a trainer. Each franchisor has a different approach to training. And, in some cases, the more you invest the more help you will receive. Many franchises have great training programs that deliver classroom and onsite instruction.

In line with this, Albert Einstein once said that “If I had only one hour to save the world, I would spend fifty-five minutes defining the problem, and only five minutes finding the solution.”

Franchisors have spent vast resources understanding their business. And they transfer this knowledge to you as a franchisee. Proper training is critical to the success of your business.

So how to evaluate good franchise training? The “How To Evaluate A Franchise Training Program” blog mentioned the 4 ways to do it.

4. Established Brand Image

Brand equity is one of the greatest benefits of buying into an established franchise. In established franchises, customers already recognize and trust the brand and they are willing to pay a premium price for services. When one works out at Orange Theory Fitness, it doesn’t matter where the outlet is located, they trust that it will be a great experience.

As a franchisee in an established system, you don’t have to start from zero to prove that your brand sells quality products or services. As a potential investor, are you sold on the brand?

As a potential franchisee, the franchisor expects you to protect the brand. McDonald’s won’t allow you to sell gyros on the menu. Some potential investors are discouraged by how little freedom they have to tweak the franchise system.

5. Franchises with Larger System Size

There are benefits and disadvantages to both big and small franchise systems. The main benefit to being a part of a smaller franchise system is greater support from the corporate office.

The main advantage of a larger system is greater brand recognition and more franchisees to bounce ideas off of. The top franchise systems are the right size for their business. There are great systems with as few as 50 franchisees and over a thousand franchisees.

6. Clear Communication With Franchisees

Communication is vital between the franchisor and the franchisee. Check out the advantages in gaining good communication:

• The better the internal communication in a system, the better the opportunity. It builds a lasting relationship with the business.
• Most franchise agreements last for 10 years or more. You have the urge to renew the franchise agreement if good communication is between you and the franchisor.
• Sometimes franchise relationships get complicated, and it is normal. Fixing the issue will retain the good company and avoid further conflicts.

Remember, it is important that you feel at ease with the franchisor to build a lasting relationship. To do that, cultivate effective and clear communication at the beginning of your franchise career.

Lastly, look for systems that have a goal-oriented culture. The opportunity should also contain knowledgeable, approachable corporate staff and happy franchisees.

7. A Feel-Good Franchise

What is a feel-good franchise? – One of the franchise characteristics emphasizes “giving back” to people in many aspects of their operations. 

In short, that has the heart towards their consumers and their employees.

Usually, they observe such follows:

• “green” operating procedures

• support local community projects

• raise money for charities

• supports employees personal development and growth 

If you would like to contribute to your community, look for a business showing this kind of dedication. A good corporate citizen is what they prioritize. 

And you will realize during your franchise investigation that those socially responsible sometimes stand out. 

If you think this fits you? Well, there are many you can see around.

Summary

Considering all seven franchise characteristics are worth considering in the investigation process. It will help you determine the right franchise you would like to invest in.

If you are ready to start your franchise journey, a well-qualified franchise consultant can help guide you through the entire p

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