Growing a business in today’s market is not simple. Stagnating will quickly edge you out of the industry. The best choice for companies to expand is franchising. However, becoming a franchisor is not as easy as getting a few startups and established firms to invest in you.
Without an expert to tell you how to franchise a business, your franchise will be the downfall of your firm. The success of your franchisees will be the primary determinant of your company’s growth. This success is pivotal to entering new markets since it becomes contagious and attracts customers to your brand. It depends on the types of support that you will offer to your franchisees. Here are the critical components of an effective franchising support system:
One of the crucial choices that you will make is whether you will offer regionalized or centralized support for your franchisees. The primary determinants of your choice are the locations of your franchisees and the level of hands-on training that your brand requires. Regionalized support will offer quick growth for your brand and minimize your travel costs. Still, you will need strong leadership, metrics, and tools to make regionalized leadership work for your brand. Using one regional office for 10-15 franchisees is a good start.
Correct Time Allocation
Your franchise’s support staff should spend time on the primary elements of your franchising success: increasing profits, operational excellence, and growing sales. You can get an overview of your franchise in about an hour. Allocating enough time for the assessment and training of your franchisees is essential to your success. If you waste time pursuing or assessing the wrong things, you will have a hard time growing your brand.
You cannot drive results without the right metrics to assess your efforts. You should have the numbers of all aspects of your franchise and reports on the efficiency of the tactics that you might have applied. Other than decision making, these numbers and descriptions will help your franchisee evaluate his/her operation and tweak it accordingly to realize profits. Decisions that are not evidence-backed will only waste your time and money.
It is common for franchisees to sit on the fence and let franchisors handle all the aspects of their operation. This will not suffice for a profitable franchising opportunity. Get your franchisees involved in the growth of your brand. Listen to their suggestions and move them to commit to your brand’s growth by showing them what they stand to gain from their investment.
In the end, successful franchising will not happen overnight. After all, you have to practice your critical thinking and always make wise decisions. There might be a few issues initially, but with the given components in your support system, the growth of your franchise and brand is guaranteed. If you feel uncertain about how to proceed, do not fret. You can get a franchising consultant to advise you on how to handle your franchisees and maximize profit from the get-go.