Here’s a common misconception: when a business owner chooses to become a franchisor, they collect investors’ money, hand over an operations manual and step back to watch their empire grow. In reality, franchising your business takes a lot of effort and dedication, but it’s a great way to expand efficiently. Here’s our recipe for success.
Franchising your business provides the opportunity to grow nationally or internationally without the huge overheads associated with the traditional methods of expansion. When done correctly, it leverages the franchisor’s brand and experience, and the franchisees’ time, effort and money to develop a highly profitable and mutually beneficial business network.
But have you ever stopped to wonder what it takes to franchise your business successfully?
There are over 900 franchise brands up and running in the UK, but not all are profitable, reputable and fulfilling for franchisees. Growing your business with the franchise model takes a good deal of knowledge, understanding and dedication. So, to help you get started, we’ve whipped up a quick recipe for franchising your business successfully.
How to build a successful franchise
- Industry expertise
- Leadership skills
- Money mastery
- Marketing know-how
- Attention to detail
- A supportive attitude
- Dedication and determination
Before finding out how to build a successful franchise, why not take a look at the top four franchisor traits or the six attributes franchisees look out for in franchisors?
1. Refine and perfect your business model
It might seem odd to focus on refining your recipe for success before you even start franchising your business, but your brand is unlikely to do well if you forget this step. Deciding to become a franchisor isn’t just another rung on the ladder of commercial growth; you must have the solid foundation of a tried and tested business model beforehand.
Remember, you don’t necessarily need to have been in business for decades or established a string of successful branches. As long as you can show your brand has scope to survive and thrive in different locations and under different management, prospective investors will be able to see its potential.
If you’re not sure whether you’re ready to start growing your business with the franchise model, consider running a pilot unit to see how it fares.
>> Read more:
- 5 Qualities of a Successful Franchisor
- 5 Reasons Why A Strong Franchisor-Franchisee Relationship Is So Important
- 5 Ways to Keep on Learning as a Franchisor
- Franchisor Tips: 6 Mistakes to Avoid When Running a Franchise Network
- The 8 Primary Roles and Responsibilities of a Franchisor
- Franchisor Tips: 10 Traits That Make a Good Franchisor
- Why it’s Important for Franchisors to Visit Franchisees.
2. Add a spoonful of strong leadership
You need to be a strong leader if you hire employees as part of your business - but the stakes are much higher if you choose to become a franchisor. Your franchisees will rely on you to work hard with their best interests in mind, constantly developing the brand and supporting them when they need guidance.
Ultimately, franchisors should inspire and motivate their investors to follow their vision, acting with honesty and integrity at all times, and keeping lines of communication open. Always treat your franchisees like valued business partners, rather than employees.
3. Mix in a sprinkling of effective recruitment
The people you hire will influence your ability to succeed in franchising your business, so tread carefully. You have a lot to lose by selecting the wrong franchisees, as your brand and reputation are on the line.
To secure the long-term success of your franchise system, consider developing an ‘ideal franchisee’ profile. Creating a clear list of the skills and attributes your investors will need should help you accurately select suitable candidates. Don’t forget to make sure your chosen applicants are passionate about your brand and the industry it operates in and reflect your business’s values.
4. Combine a large pinch of training and support
The best franchise opportunities prioritise training and ongoing support for franchisees. Even if you appoint a seasoned investor with decades of experience, you’ll still need to teach them how to develop a business under your particular brand, reflecting your specific values.
As well as structured training and professional development sessions, you should organise networking opportunities. Giving franchisees the chance to mingle and share best practices, tips and opinions should help them develop more profitable and efficient businesses.
It might be tempting to skimp on training and save your money, but the quality of support you deliver will have a huge impact on the ultimate success of your franchise. The more guidance you offer, the quicker investors can develop their units, and the more likely they are to achieve high profit margins and increase your brand value.
>> Read more:
- 5 Qualities of a Successful Franchisor
- 4 Things Franchisees Never Have Time for But Are Essential for Running a Successful Business
- How to Launch a Franchise and Get Noticed
- 4 Elements of a Successful Franchise
- How to Start a New Business on a Shoe-String Budget
- The Ultimate Guide to Franchising Success
5. Top it up with a positive culture
Establishing a great atmosphere in your network can turn dissatisfied, struggling franchisees into happy, successful business owners. Some franchisors struggle to develop a meaningful culture, because, unlike profits and customer conversion figures, it’s an intangible asset. But there are ways to roll out a great company culture - and you can measure its success through job satisfaction scores.
The biggest factor influencing franchise culture is probably the way you treat your franchisees. If you support them to achieve their goals and overcome any obstacles, you’ll be able to differentiate your brand from competitors as a compassionate franchise network with a family feel.
6. Bake, sample and tweak the recipe to improve it
Although you should start franchising your business with a winning operational model and lots of industry experience, you’ll continue learning as you welcome franchisees and grow your brand. In fact, you should be making an effort to carry on expanding your knowledge, as it will help you stay at the top of your game.
You’ll never ‘finish’ developing your franchise model, as there will always be new trends to discover, challenges to overcome and opportunities to explore. This continuous process of revision and adaptation is all part of the fun when franchising your business.
More tips for franchising your business successfully
You can find more advice and handy tips on running a franchise business, whether that's a pet franchise or beauty franchise, right here at Point Franchise. Look out for our Franchisor Tips guides in our articles section.
Alice Tuffery, Point Franchise ©