What it takes to run a successful Franchise Business
According to Business Development Alliance , franchises should always have a current business plan and exit plan. Excellent franchisees know the game and are aware of the full support offerings available from the Franchisor. They also know that by using the systems and processes that are available to them, they control their own destiny and direction of the franchise business.
Business Development Alliance advises that franchisees should always be challenging themselves by asking these types of questions:
- Do I ask for advice?
- Is my Business Plan and Exit Plan (Strategy) current?
- How effective is my LAMP (Local Area Marketing Plan)?
- Do I follow the systems and procedures that were outlined during my initial training?
- Do I reinvest in training my people?
- Do I need more training in sales or operations?
- Do I understand what effects my daily cashflow position?
- How does my KPI’s compare to the group?
- What stats do I need to keep and how can they assist me monitoring my business?
- Do I know the financial position on a weekly basis?
In addition, ideal successful franchisees should exhibit the following traits:
- Like being on committees and FAC’s (Franchise Advisory Councils)
- Attend FCA functions
- Are positive contributors to the network
- Team players and not individuals
- Regularly attend franchise meetings and training sessions
- Not afraid to ‘test’ new equipment or procedures
- Make themselves available to new and existing franchisees
- Continually reinvest in people, equipment and systems
- Generally embrace change and not resist it
- Make benchmarking visits to other franchisee stores/ territories to see what’s new
- Have a good grasp of the terms in their Franchise Agreement- renewal, sale, what constitutes a breach, etc
- Exceed any ‘minimum performance criteria’ that the Franchisor may set