The process of franchising implies the duplication of a business that has already been proven to work, and which has done so for long enough to enable us to deduce that it is not merely a fleeting success. In addition, if the management that needs to be implemented by the franchise holder is simple enough to not require long training periods and/or permanent supervision, we are off to a good start.
How to create a successful franchise
The simplicity of the process mentioned above does not imply that only simple businesses can be franchised, but rather that for the franchise system to operate more proactively, it is advantageous for the original business to have already been “simplified” by the franchisor in order to circumvent the complex processes that likely, previously existed. Therefore, assuming that we are starting out with the foundation of a business which is duplicable, “simplified,” and the success of which appears to be solid, we are then enabled to begin the designing of the project, that is, to establish the conditions that will define our franchise. This design-model will be different to those of any others, as it will be expertly tailored in accordance with the signature standards, guidelines, characteristics, and specific objectives of our business.
Designing a successful franchise project consists of establishing all of the necessary conditions: economic, legal, relational, structural, etc. None of these essential components can be left to chance. One must also ensure that all necessary elements are integrated into the framework’s core design and that the essential prerequisites for any franchise project considered for consolidation are met. Those being: the franchise can only prosper when its conditions are balanced, and also that general profitability begins with that of the franchisee.
The search for, and selection of franchisees
The franchisee recruitment process , along with our high standards and close scrutinization throughout, will largely determine the caliber of our network. That being said, if corners are cut in the short-term by possibly accepting franchisees who may not meet our level of standards, then there is a strong likelihood that we are mortgaging the future of our franchise network and consequently the prestige of our business model and brand. To emphasize the importance of close examination during this process, one must remain vigilant of an unbridled ambition to increase the network and turnover, even upon the realization that we may no longer be adhering to our own selection criteria, as this is one of the main causes of failure of a franchise.
Finally, we must always remember that the franchise relationship is a relationship with people. People who have committed themselves to our business model, entrusting their capital, livelihood, and often their future to our skills and capabilities in order to make that endeavor – our endeavor – truly successful.