The Never Changing Principles of Franchising
Since the birth of the franchising model, there have been certain never changing constants, the Principles of Franchising
This story originally appeared on Franchise India
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Franchisors need to consider these principles to achieve success along with breaking the demographic barriers. Adhering to these principles is a challenging job, where franchisors need to put efforts for building and developing a successful franchise.
It is believed that if franchisors consider these principles from designing the model to its growth and development stage, the business will flourish.
Avoid claiming false expectations
Running and marketing your franchise requires real efforts. Honesty and avoiding making false expectations can help you achieve your vision as a franchisor. Remember that it is better to lose customers to a truthful disclosure rather than gaining a new franchisee based upon fake expectations.
Properly train and prepare the new franchisee
Training plays an essential part in building a successful franchise business. New franchisees must be properly trained and motivated before taking control of the new franchise. Some franchisors cut corners on training, due to lack of money.
If you can't provide quality training, then better wait for the moment you could.
Achieve ROI
When building the elements of a new franchise, it must be structured so that the franchisee can make money. Companies that add royalty fees and other expenses onto a marginally profitable company operation will doom many of their new franchisees to failure. The goal couldn't be any clearer.
Calculate franchise performance
The evaluation process is very crucial in order to become a successful franchisor. A franchisee financial performance should be scheduled on a daily basis, enhancing a franchise overall performance.
Without this knowledge, a franchisor will lack the required information needed to make important strategic decisions.
Before taking an important decision that will impact franchisees, it's important to accurately measure the impact that change will have on individual franchisees and the overall network.
This article was originally published on Franchise India by Shahram Warsi.
