Taking up a franchise over an independent business, undoubtedly offers the aspirants with huge benefits. For example, franchisees get to avail the already established brand name, low risk, reasonable investment, high returns and long-term assistance. However, like any other business, franchise business too has its share of hard work, and challenges. Thus, to assist the aspirants with the fundamentals of franchising, the following guidelines will help you to achieve success:
Qualified franchise attorney: Before stepping into a franchise business, it is a must to take the guidance of the franchise lawyer or attorney. Many franchisees have been fooled by fraudulent cases in franchising also. Therefore, it is wise to spend a few bucks for employing the service of an attorney to safeguard yourself.
Capital requirement: Money is the most important criteria for owing a franchise. Any aspiring franchisee needs to research well about investment needed to set up a particular franchise. This includes the franchise fee, royalties and other hidden charges (if any). Prospective franchisees also need to contact banks and other finance houses for taking loans. The loan may include the start-up cost as well as the running cost of the franchise. Entrepreneurs have to invest some capital in the beginning to reap profits at the later stages.
Preferred location: An outlet cannot be successful until it is located at the right place. Having a pre-school in high-streets or a restaurant at the back lanes of a small town may not be profitable for either. Therefore, in few cases, the franchisors may also assist their franchisees in the site selection process. Some other things to consider are how much foot fall the area gets regularly? What is the catchment area? Is it in vicinity of any complimentary businesses or directly across from the competition? The answers to these questions should be taken care of before selecting the location.
Training and support: An effective franchisee training programme is an important part of the development of a franchise business. Mostly, all franchisors and their teams provide support and training to the new franchisees. Therefore, as prospective franchisees you need to select the franchisor that would offer support and training. The training is usually done by the training department of the parent company.
Recruitment of staff: The future of any franchise depends on its well-mannered, hardworking, and dedicated staff. Therefore, franchisees need to recruit their staff carefully. Usually franchisors send a few of their well qualified personnel to train the franchisee’s staff.
Vendor selection: Franchisees usually depend on their franchisor to suggest the name of a dependable vendor to maintain the original standard. But to have a vendor in the franchisor’s city would increase the cost of transportation. Therefore, in few cases, franchisees need to contact other vendors also. Franchisees need to have backup plans if one of the suppliers all of a sudden goes out of business or double its prices. A list of alternates should always be in the file of the franchisee.
Online marketing techniques: Being a part of a franchise system offers tremendous advantages such as, instant brand recognition but still the franchisee has to work hard to achieve success. One must have advertising online by logging on to various social websites and maintaining the website of your outlet as well. Advertising campaigns, public, and media relations efforts, TV and radio commercials, etc. can also be used to promote your outlet and its products and services. Many franchisors have public relations representation, and provide guidance or drive campaigns at the corporate level. Moreover, franchisees can initiate some schemes, and gifts to attract consumers in addition to the schemes of the company to popularise his outlet.
Thus, in order to enjoy the leverages of franchising, the aspirants must make use of these fundamental issues before joining the bandwagon. Keeping the above guidelines in mind, aspiring franchisees are sure to go along way!
