Back to Previous

12 top tips to running a successful franchise system

Sarah Stowe

What does it take to run a successful franchise system? Franchisor Justin McDonell, who with his sister Jacinta runs the Australian Anytime Fitness company, believes he has the answer.

The McDonells grew up in a family that runs health clubs, so it was probably an obvious step for them to introduce the 24-hour fitness club franchise, Anytime Fitness, into Australia. Since 2008 the pair have grown their national franchise to an annual turnover of more than $3.3million in 2009/10 with plans to open 300 Anytime Fitness clubs in Australia within the next five years.

And Justin’s top 12 tips?

1. Stay positive and focused: follow your gut feeling (and proper research) and ignore the knockbacks.

2. Spend enough money from day one on essential elements such as your franchise agreement.

3. Stay on brand: ensure everything you develop and implement enhances your brand. Know your market and don’t try to be everything to everybody.

4. Less is more: a simple business model that can be replicated throughout your franchise system can be the reason you succeed.

5. Be across what is happening on a day-to-day basis: understand progress and ask for feedback on projects to ensure all tasks are completed.

6. Ensure you push an environment and culture which promotes team work, with high energy, passion and dedication. Senior management needs to lead by example — do what you say and say what you do.

7. Allow franchisees some latitude in their business while ensuring that the basic principles and brand essence behind your franchise model are followed. Though don’t be afraid to change things that are not working for the franchise.

8. Be firm but fair: ensure your franchisees and staff know the rules and know when to show some ‘tough love’.

9. Challenge and set goals: it’s important to keep raising the bar in all areas of the business. Never become complacent, keep striving for excellence.

10. Celebrate success: it’s important to recognise milestones you reach and ensure your franchisees are a part of the celebration.

11. Hire to inspire: don’t just recruit staff and franchisees with talent, but hire those who have passion and inspiration as this will eventually be infectious throughout your organisation.

12. Enjoy what you do: look forward to coming to work and make sure you have the right balance in your life.