A number of franchise candidates exhibit a high degree of trust as they travel through the franchise process. In some cases it begins with the initial contact between a candidate and the franchisor representative and builds gradually over time. In other cases, the level of trust may arise at a certain point in the franchise evaluation process: for example, at a meeting with a franchisor representative or during a Discovery Day visit.
I believe that a successful franchisee-franchisor relationship should rest upon a foundation of mutual trust. However, when it comes to selecting and evaluating franchise opportunities, a candidate has to cast trust aside and proceed with the same mindset as if they were buying an independent business. Sometimes, the concept of a franchise model can cloud the way a franchise prospect evaluates a franchise opportunity. This is because some individuals believe that investing in a franchise significantly lowers the risk of failure, which isn’t always true.
Harkening back to the days when the U.S. and Russia were negotiating a nuclear arms treaty the words most often used were “Trust and Verify.” This mantra should be applied to the franchise selection and evaluation process.
There are several reasons why the Trust and Verify approach is applicable to evaluating a franchise:
There needs to be a certain level of trust in all business relationships, however, when it comes to evaluating franchise opportunities the mantra should be trust and verify in order to avoid making the wrong decision.
When it comes to franchising, Murphy’s Law comes into play more often than desired. In many cases, a new franchise takes off slower than anticipated.
The emphasis on franchise system growth is as old as franchising, having been accepted as the indicator of a quality franchise.
After owning 4 successful businesses, in different business sectors, there are two common attributes my good hires have shared; Curiosity and Tenacity.
In the franchise industry, franchisors can view comparisons and relationships between consumer satisfaction for the products or services a franchise offers.
These traits lead to low franchisee turnover, an attractive investment opportunity, outlet growth and brand recognition and consumer satisfaction.
Owning a business is hard. Each venture has its differences – different customers, different go-to-market strategies, different business partners.