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What Makes a Great Franchise?

By: Jania Bailey

 

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A franchise is a specific license that a franchisee can acquire that in turn allows the owner to have access to the franchisor’s proprietary knowledge, processes and trademarks in order to allow the party to sell a product or provide a service under the business’s name. FranNet’s franchise experts know how to spot the best franchises with these simple giveaways.

 
If the franchise you are looking at doesn’t have a strong business system or a proven business model, then cross it off your list and move on. What is the difference? A strong business system is how the business operates on a daily basis, such as the payroll, point of sale system, marketing and point-of-sale systems. These items are in direct contact with your consumer. If it isn’t well executed, they will be the first to know and word of mouth can be disastrous (or conversely, highly beneficial). Also, a proven business model is what makes a franchise…a franchise. Franchisees purchase an idea that has shown massive success. They then get training on how to replicate that success (system) to obtain the same outcome. The entrepreneur has the option to choose a business that has been around for years or may be newer, but either choice should have both a strong model and system.
 
 
When you find a franchise that is constantly innovating and trying new ideas, keep it on the list. This is a strong sign that they will remain a success through their consistent flow of creativity and openness to keep their business relevant. A business has its staples, however it shouldn’t remain monotonous or its customer base will grow bored and restless. Look for the franchise that has solid staples with an equally solid stream of fresh product or offers.
 
Befriend other franchisees and seek their wisdom – this will undoubtedly weed out some “maybes” on your list. Ask what they did in their research stage and during their first year, and compare their personality to their ownership responsibilities. Who are you most like? Are they succeeding or is their business struggling? The trick here is to be honest with yourself after the interviews. If you speak with a franchisee that is failing, yet resonates perfectly with your work habits, seriously question your next step. Franchisees in your community could be your future – carefully reflect on that.
 
Is there such a thing as a perfect franchise? No. If you are seeking perfection, you will not find it. What you can find, however, is a franchise that will embrace all your particular wants and needs and provide you with the future you’ve always wanted.
 
This article was originally published by FranNet
Published: July 15, 2015
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Jania Bailey

Jania Bailey is president/COO of FranNet, North America’s most well-respected franchise consulting firm. Bailey sits on the board of directors for the International Franchise Association (IFA) and is a certified franchise expert. Her background includes over 25 years experience in the banking and franchise industries.  Bailey also authored the book, “Thriving – The Journey to Success in the Business World.” 

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