The 5 Elements of a Successful Franchise
There is no one perfect franchise, but there are many that have elements that lay the groundwork for success.
This story originally appeared on The Franchise King
You want to buy a perfect franchise. I don't blame you.
It would certainly eliminate the risk. But, wouldn't that make it kind of boring?
Now, you know in your heart that a perfect franchise probably doesn't exist. But if it did, what would a perfect franchise business look like?
For a franchise to be perfect, there are several things that it would need to have.
1. Powerful business systems
A franchise without a business system isn't a franchise. It's a business at death's door.
After all, the franchise business model is all about the system, including the systems within the system.
When you look for a franchise to buy, make sure you find out just how great their systems are. That's part of what you're paying for.
Related: You're Either an Entrepreneur or You're Not. There Is No In-Between.
2. Serious brand power
Most of the people I've worked with over the years tell me that they're interested in buying a franchise that has a recognizable brand. I understand.
But, franchises that have a big brand can be hard to buy.
Not only are they going to be more expensive than a franchise without a recognizable brand (in some cases) but they may not have any locations available in your area.
If a franchise is "branded" that usually means it's popular. It also could mean that it's been around for a long time* and that's why finding a location could be challenging.
*There are exceptions to any rule.
Five Guys, a well-known food franchise, sold out the US and Canada in a few short years.
For a perfect franchise business opportunity to survive in our fast-paced times, its corporate office must always be looking for ways to innovate.
While today's consumers like consistency-they also like trying new things. Case in point: McDonald's. You can go into any McDonald's franchise and order a Big Mac®. You can also order one of their chocolate shakes, and get a tasty hot apple pie. They're staples. But, you can also order a McCafé™ Iced Mocha from an employee and watch it being made with one of their very expensive coffee machines.
Franchisors that are constantly innovating are franchisors that are increasing their chances of success for their franchisees and their brand. Perfect.
Related: Why Business Ownership Is an Exercise in Personal Development
4. Powerful franchisee training
If you're going to open a franchise, you need to feel confident about running the business.
The only way to get confident is to get trained. The training you receive from your franchisor is crucial. It needs to be amazing, as far as I'm concerned. You need to know everything about the day-to-day operations of your franchise business. You don't want any surprises. In a perfect world, any potential "surprises" have already been dealt with by the franchisor. Remember, you're buying a proven business system. That's one of the promises that a franchisor is supposed to keep.
If you do great franchise research you'll know ahead of time if that promise is being kept.
5. Wealthy franchisees
A perfect franchise will have wealthy franchisees.
Of course, some of them were already wealthy…before they became owners, but I want you to dig deeper. I want you to seek out the top-earners. They shouldn't be hard to find.
The great franchisors are the ones that focus on franchisee profitability.
A franchisor with lots of very profitable franchisees can't help but grow.
Good news travels fast. The franchisees talk to one another. They know who's making money within their ranks.
My clients know who's making money too. That's because I teach them how to find the successful owners. Then I teach them how to dig deeper and find out why they're so successful.
Once my clients do that, I ask them if they feel they can emulate the successful franchisees. So they too, can be successful franchisees.
Franchising isn't perfect. There really is no such thing as a perfect franchise business opportunity.
But, maybe you can find one that's really close.
They're out there.
Related: Franchise Owners: Tell Us Your Story