There are numerous elements that are required to make a franchise successful. But according to our research a successful franchise is one with the right combination of seven key business categories: support, marketing, passion, lifestyle, brand, opportunities for expansion and finance.
New franchisees can use these categories to examine a business opportunity and gain insight into the franchise model.
In franchising you are in business for yourself but not by yourself. Some of the other things to investigate before buying in include what management support is available, whether there is business coach support, regular training and how they track performance.
Marketing is necessary for growth and franchisees generally pay a marketing fee to support the brand. It’s important to understand what this is and what it covers. It might include local area marketing, product releases, store opening support, public relations and advertising options.
In franchising the popularity of a brand is a key factor in attracting potential franchisees. How the brand is promoted is at the core with key things to investigate including the extent of regular advertising, quality of the website, the company’s digital brand promotion and presence on social media.
As most entrepreneurs will attest passion is necessary to maintain motivation. Your and your family’s belief in the product is paramount with research revealing a clear link between strong family belief in the business and motivation to succeed.
There is no denying owning a business is hard work but successful franchisees must aim for a good work life balance. Key things to enquire about include the average working hours, flexibility of the model, as well as ability to hire managers and staff to allow greater freedom of hours.
The potential growth of a business is closely aligned to earning potential so it is important to know options for expansion. Each model will be different but factors to consider include the different levels within the business, ease to expand to multiple sites and range of products.
Our research has also revealed the most successful franchises have business owners drawing a larger salary than they could receive elsewhere. Therefore, key things to investigate are average return on investment, earning potential, different avenues for turnover and resale success rate.
However, the definition of success is individual and the decision to go into business should be thoroughly researched to ensure the highest possible potential for satisfaction in all areas of life.