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Blueprint for Success - Part 3

Written by : John McGavin
2007-09-15

Qualities of a good franchise system

Blueprint for success
These are the amazing results that franchises obtain, but a word of caution is in order about statistics. These statistics are averages among the franchise industry. However, nobody buys the average franchise. Some franchises are not effective in helping their owners. You want to determine if the franchise YOU choose gets you leverage in the market place. So how can you tell? What are the qualities that SUCCESSFUL franchises have that yield these results? >>>>> > EXPERIENCE>Successful franchise companies bring substantial industry experience to the table. They should be experts in their business. Most companies don't require industry experience because they know the industry. They need your business skills, not technical expertise. For this reason, franchising can be an effective way for you to transition to a new industry.

TRAINING

In order to transfer their expertise to you, franchisors must become expert trainers. Training for new owners may range from two to eight weeks or more. A combination of training will usually be conducted at headquarters and in your market.

ONGOING SUPPORT

This support comes in many forms such as ongoing training, new product development, and new technology. Whatever the form, good franchise companies are always evolving their system to keep ahead of the competition.

NAME RECOGNITION

The importance of name recognition depends on the industry, but in consumer oriented businesses it is often what separates the franchises from independents. However, there is a paradox in name recognition. By the time we are aware of the name in our market, it is probably not available. You will want to see that the franchise has a track record of establishing the brand in a new market.

PROVEN SALES AND MARKETING SYSTEMS

You should expect time tested systems that fit the particular industry. Good franchisors have effective advertising materials and know what media is effective. If direct sales are required, training on networking and sales techniques should be provided.

DEMOGRAPHICS AND SITE SELECTION

Good franchisors know the demographics required to support their business. If it is a business where location is important, you should expect the franchisor to provide assistance in finding the best location.

SPEED AND EFFICIENCY

From your decision to opening day, effective franchisors should expedite the start up process.

SIMPLICITY

Franchisors tend to keep their business model simple, focusing on the activities that will make you the most money.

CULTURE OF TEAMWORK

Effective franchisors realize that nobody has all the answers. They collaborate with experienced franchisees to constantly improve the business. Annual conventions, mentoring groups, and advisory counsels are just some of the ways franchisors support these efforts.

The Business Model
Finding the right "FIT" for you

People use many criteria for selecting a business. Unfortunately, many of them are wrong or irrelevant. The fact that a friend has enjoyed success in a particular business is not an indicator of your success. Neither is the fact that a franchise is currently hot. Your ultimate success, financially and emotionally, is going to depend largely on how that business provides what you need.

The Business Model, created by you with the help of your FranNet advisor, will be your guide to finding that right business. It will take some time and some thought, but the resulting document will enable your advisor to recommend specific franchise opportunities that have the best chance of providing those things which you have determined to be critical.

There are two parts to an effective, meaningful Business Model:

Blueprint for success

Remember, the Business Model should be THE guide for your FranNet advisor to use in selecting the recommended franchises for you to investigate and for you to use in determining if a particular franchise really provides what you want. Do a great job in building the model and then,

Blueprint for success

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