What is required to make an award winning franchise that stands out?

Sherpa Group are an international consultancy offering a variety of products and services to guide you through franchising, licensing, or expanding your business. With a team of well credited franchise consultants that have a combined knowledge and experience of over 30 years in the franchising industry, we are definitely aware of what it takes to become an award winning franchise and the critical steps needed to become a business that stands out in the franchising sector.

Some remarkable businesses that have been hugely successful utilising the methodology of franchising include Cartridge World, Gloria Jeans, Telcoinabox, and Wendy’s to name a few.

Chief Sherpa and CEO of Sherpa Group, Vicki Prout, says it’s important to understand that every business can franchise but not every business should.

“It is amazing how many people think they can franchise their business, but when it comes down to the required commitment in setting up the compliance framework, ensuring the model is correct, and shifting focus on training and support – not many are really keen for the hard road ahead in getting it right. This is never a get rich quick scheme – it is sheer guts, passion and determination – putting yourself, your business model, systems and processes on the line,” Ms Prout said.

Prout in her former role as International Development and Marketing Manager for Cartridge World helped the franchise system grow from 436 stores to 1604 stores, across 40 countries. Along with a proven concept, Prout has found successful franchises are the ones who possess a mixture of model profitability, ease of duplication, and passion to continually re-invest back into the business. Franchisors that also have the capability to ask questions and seek information and put the necessary compliance measures in place are the ones to model from and follow success.

“My advice to franchisors is to constantly reassess, seek advice from experts, remain highly focused, and the biggest key of all re-invest back into the business. Franchisors that are greedy will not be successful,” Prout said.

Sherpa Group offers the following advice for those businesses looking to franchise and to become a franchise that truly stands out.

1. BE AMAZING – You should be the best and offer amazing results in your business if you’re thinking about franchising. So when you have lines going round the block every day then you are probably ready to think about franchising. If your competitors have lines going round the block and you don’t then you’re probably not the one.
2. BE UNIQUE – Having something that is different, exciting, unique or innovative, means your business systems are better than the competition. Franchisees will want to buy that. Another pizza shop with “organic” olives on their Supreme alone isn’t going to slice it! Find your point of difference.
   
3. BE COURAGEOUS – You have to be determined to learn it all again. You will need to be willing to risk everything again (after you have probably just given yourself some breathing room) and teach yourself all about franchising and what it takes to make it.
   
4. BE HUMBLE ENOUGH TO COPY – Look at what other successful franchises are doing well and see if it would work for you. It’s valuable to have a unique and amazing product or service but proven operating systems and procedures do not need to be rewritten.
   
5. BE CREATIVE – Come up with an amazing franchise business model that will lead to strong growth and profitability.
   
6. BE PREPARED – Research franchising magazines for articles that advise on “How to Find the right Franchise?” and ask yourself could your business meet those requirements.
   
7. BY THE BOOK – You need to document the whole business, from systems and procedures to marketing, technical and financial guides – be prepared to have comprehensive manuals.
   
8. BE ENERGETIC – Lead by example, bring energy and passion to your role as a franchisor and your team and franchisees will feed off it. Be prepared to continually reinvest back into your network.
   
9. BE COMPLIANT – Make sure all your legal documentation is prepared by an experienced franchise lawyer and be prepared to instill comprehensive compliance management systems.
   
10. BE WILLING TO USE ADVISORS – If you can’t find a successful franchisor to mentor you then get some great advisors to guide you through the process. You don’t know what you don’t know.
    

Sherpa Group has worked with some remarkable businesses that are in the early stages of franchising including Destination for Men, The Fairies, and Hair Choice. These brands will be represented by Sherpa Group at the Auckland exhibition, for more information on these exciting and innovative businesses please come visit us at the show.