Throughout the years, storied franchise programs have shared common attributes that separate these systems from the rest of the franchise universe. These top performing franchisors adhere to specific operating principles and follow best practices that are an integral part of their franchise program. These components are exclusive of size and should be a part of every franchise both large and small.
Here Are My 10 Components of Franchise Excellence
- The foundation of the franchise is built on equitable franchisee ROI
The structure of the franchise program both operationally and financially provides franchisees an opportunity for a fair financial return that does not require extraordinary performance.
- If the franchise program requires adjustments they’re done
If certain products or services aren’t successful they find alternatives. These franchisors don’t let ego get in the way of what’s best for the system.
- The franchisor controls the franchise sales process and adheres to its franchisee profile
One of the most frequent reasons for franchisee failures is undercapitalization followed by a lack of skills needed to operate the franchise successfully. The franchisee profile is the standard and if franchise candidates don’t fit this profile they are turned down.
- Total transparency with prospective franchisees
They provide prospective franchisees what is needed to be successful. They don’t sugarcoat the franchise opportunity.
- Franchisor leadership is fully engaged in the franchise operation
Franchisor executive leadership is fully involved in the franchise so they are aware of the systems successes and failures. Important franchisee feedback will flow to the franchisor leadership.
- Franchisee input is solicited for important operational and marketing strategies
The franchisor will include its franchisees in important decisions impacting the network. This will be done using the Franchisee Association, FAC, advertising committee or other representative franchisee body.
- New products, services and marketing programs are thoroughly evaluated before being launched
New products, services or equipment are tested in select franchisee locations before introducing them. This process leads to an objective and credible result for the rest of the franchise network to decide upon.
- Gathers financial results from franchisees on a regular basis
Despite certain requirements set forth in franchise agreements it’s been my experience that many franchisors fail to obtain financial results or reports from their franchisees on a regular basis. However, the top performing franchisees gather financial data.
- Protects the integrity and standards of the franchise brand
The franchisor upholds the standards of the franchise brand. The franchisees that follow the program deserve it and the customers that use the product or services provided by the franchisees are entitled to consistency.
- They invest in franchisee training and support
Top performing franchisors have effective training programs and training does not end with start-up franchisee training. When franchise operations identify weaknesses in the execution of their best franchise practices the training component will be should implemented in order to address the problem.
The top performing franchise systems share certain attributes and operating practices that they adhere to. Franchisors that seek to be a part of this select group should strive to follow the example of the excellent franchise programs.