Features of a Successful Franchise

Written by Whitaker Stacey

Deciding to open a franchise is a big step in itself. But then comes the hard part: how do you select a franchise that’s going to help you achieve your personal and financial goals? Obviously, you want to see some numbers in order to be sure that you’re not throwing your money down the proverbial toilet, but there are some other things to consider as well when choosing a successful franchise. Typically, a successful franchise will have a well-known trademark, a good business model, substantial support and training, a degree of selectiveness, a clean legal history, a solid reputation, and good morale.

A Well-Known Trademark

As with just about anything in marketing, brand is key. If you have a well-known and reputable trademark, you’re going to have a customer base from day one and will have some degree of leeway as to other aspects of the business such as customer service and quality. Although these things are certainly important and should be attended to, a sound trademark can give you some breathing room to get things up and running. As long as you have a steady stream of customers, you can begin to perfect the other areas of your business without losing a ton of money.

A Good Business Model

A successful franchise, that is one in which the majority of its store locations are making a steady profit, will inevitably have a good, solid business model. If you purchase a franchise with a tried-and-true plan for making money, then congratulations, you’ve won half the battle already. Of course, you’ll need to be able to spot a good business plan when you see one. When evaluating a business model, be sure to look for emphasis on customer service, quality assurance, and marketing and advertising.

Substantial Support and Training

Having a good business model to follow is important, but the likelihood that the model will work for you is dependent upon how much support and training the franchisor is willing to provide. Having a good plan isn’t enough; you need to also make sure that you will have the resources you need in order to make the plan a reality for your particular franchise.

A Degree of Selectiveness

A quality franchisor will have prospective franchisees knocking down his door trying to get in on the business deal, so he will likely be choosy about who he allows to run his stores. After all, the corporation’s reputation is on the line as well. If you encounter a franchisor who practically begs you to sign on the dotted line by touting profit margins that he has no documentation for, that should be a warning sign that he may be trying to get rid of a failing business.

A Relatively Clean Legal History

Even a good business will get sued now and then, so one tarnish on the legal record is not necessarily a red flag, but if the company has a long list of court cases, particularly if they are similar in substance, there may be an underlying problem that needs to be addressed. Unless you want to take on that battle, you may want to steer clear of this particular franchise.

A Solid Reputation

Having a franchise with a well-known trademark is usually considered a plus, but not if the franchise is known for its poor customer service or less than quality product. A company’s reputation can change overnight as a result of bad press or one prominent individual’s negative experience, so you’ll need to stay on top of things to make sure that you’re buying into a company with not only a popular name, but a good one as well.

Good Morale

A successful franchise with a good business plan will have happy employees, including franchise owners. Make it a point to talk to other owners of the local franchises you’re considering to find out how happy they are with their business as well as the support they receive from the franchisor.

Conclusion

As a prospective franchisee, you will have a myriad of opportunities at your fingertips. No matter how great these opportunities may sound, be sure to do your research. Ultimately, you will want to go with the franchise that has a proven record of success along with many of the other features of a successful franchise. Looking out for these characteristics and taking the time to make a well-informed decision will no doubt result in big returns in the future.