Earmarks of a Successful Franchise!

There are many (Thousands) franchises available for the individuals that want to own a business without going through the trials and tribulations of developing the business from an idea to reality! In the end, the success, however, despite the past record of the franchise chosen, will depend on the franchisee and the ability to follow the franchise plan and employ the necessary people that will be partners in the development and success of the franchise. There are certain things to watch for when reviewing franchise opportunities that meet your skill level, financial situation and domestic position.

1.What is the past success/failure rate of the franchise offering?
2.What kind of training is available to the franchisee and is there ongoing training made available?
3.What is the penetration of franchises in proximity to your proposed location and what are the territory limitations protecting your area going forward?
4.What is the “buying power” offered by the franchiser due to their reputation and contacts with suppliers and manufacturers?
5.If a point of sale system is a necessity, doe the franchiser offer a system that will accommodate the hardware and software needs of the business?
6.What are the “bios” of the officers in the franchise? Do they have a successful track record in past positions prior to the franchise undertaking?
7.What are the communications with the franchiser like? Are the right people available to you as a franchisee when you need immediate assistance?
8.What is the reporting structure for sales and franchisee accountability for hitting budgetary expectations?
9.How much is the initial cash outlay and what is the commission of sales structure?
10.Is there a periodical visit from the franchiser following up to see if the franchise plan is being executed and if not, a “rehabilitation” plan made available? The attribute of the best franchises is the consistency from franchise to franchise, no matter how much distance separates them!
11.Is the franchise name “top of mind” in the marketplace and does that name offer instant credibility to the franchise?
12.Doe the franchiser make all the supplies, fixtures, and equipment available to the franchisee making the implementation of the franchise efficient cost-wise and time-wise?
13.Does the franchiser offer any financial assistance at a below market interest rate to ease the financial woes of the franchise start-up costs?
14.The franchise “home office” should be properly manned and operate in a successful business environment evidenced by the tools and human resources at the office!

In closing, franchising is only for the serious business-person that understands the importance of carefully scrutinizing the franchise offering and after choosing the “right” franchise has the ability and discipline to execute the plan as close as possible. After all, if you are going to pay for a proven franchise, why stray off course and do it your way? The successful franchise has carefully designed the plan and the plan is sound by virtue of the “trial and error” way of business being eliminated if not greatly reduced! The franchisee has a history of doing what’s right in business!

By Randy L. Snyder

Randy contributes weekly to Salesheads and specilizes in retail issues. His 35 years experience is in national and international chains and includes franchise start-ups as well as all aspects of retail buying, selling and marketing. You may contact him @ rsnyder921@aol.com or (p) 239 481 0844.