Positive Traits That Successful Franchise Systems Share

Published on April 24, 2019

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Prospective franchisees considering a specific franchise opportunity need to thoroughly evaluate each franchise opportunity. The information provided by Franchise Grade is based upon critical performance data from each Franchise Disclosure Document (“FDD”) and serves as the basis for grading each franchise. However, there is additional information not found in an FDD; this information represents positive traits that successful franchise systems share.  Prospective franchisees can gather this information from various sources including existing franchisees, business brokers, and the franchisor.

Positive Traits Successful Franchise Systems Share:

  1. Comprehensive initial and ongoing franchisee training programs
  2. There is structured and open communication between the franchisor and its franchisees. Whether through a franchisee association or other means the successful franchises rarely receive surprising negative news.
  3. The franchisor is innovative and stays current with technological innovation.
  4. Effective Social Media presence. The successful systems can maximize the benefits of Social Media.
  5. Positive franchise brand image. A search of the Internet would result in little or no negative franchise news.
  6. The franchise website and corresponding franchise marketing and sales materials are well constructed and highly professional.
  7. When it comes to products and operational systems, the franchisor is creative and innovative. The top-performing franchisors innovate and frequently include franchisee representatives in the process.
  8. The resale market for existing franchises is healthy with strong multiples.

When evaluating a franchise opportunity, there are specific performance indicators to consider. However, the evaluation should include other factors not found in the FDD or other documents. These factors are the positive traits that successful franchisors foster and share. Before the final step to franchising, it’s essential that the franchise candidate determines if the franchise shares the same traits as the successful franchises.


About the Author: Ed Teixeira
Ed Teixeira is a recognized franchise expert with over 35 years experience in the franchise industry. He has served as a corporate executive for franchise firms in the retail, manufacturing, healthcare and technology industries and was a franchisee of a multi-million dollar home healthcare franchise. Ed is the author of Franchising From the Inside Out and The Franchise Buyers Manual. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country and spoke at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. Over the course of his career, Ed has been involved with over 1,000 franchise locations and launched franchise concepts from existing business models. Ed can be contacted at 631-246-5782 or ed.teixeira@franchisegrade.com.
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