It’s not always feasible to start your company, create and shape a brand name from the scratch, and start an empire from the bottom.
Even if you start from scratch, you’re most likely to find it difficult to acquire capital and credit as your business would still be in its earliest stages of development with no validated track record.
Thus, buying a franchise and leveraging the existing brand goodwill over building a business from scratch is often an ideal choice.
Most aspiring entrepreneurs choose to franchise since it enables them to scale their business without much risk.
However, there are still assorted levels of success and profitability associated with being a franchisee. The present article provides the list of characteristics associated with highly profitable franchises:
1. GOOD LOCATION:
If franchise is at a good location, it definitely adds to the profit earned. Customer base is essential for any franchise to run successfully but you can lose it considerably if your franchise is located out of sight from key roads and highways.
The site of franchise location should be easily accessible. Preferably, it’s better to choose an area wherein there’s no direct competition for the same may snatch away a substantial part of your customer base.
However, sometimes it’s the opposite i.e. because of multiple competitions and busy location, customers are drawn more to such areas. So, you should choose wisely and make a right choice.
If you are to choose the location then consider locations near businesses which attract the same customer, research local regulations and put yourself in the shoes of the customer.
2. FRANCHISOR’S SUPPORT
Even if franchisee has adequate industrial experience, he is mostly not familiar with the operational practices of the business especially in the initial phase of franchising.
Franchisors should provide qualitative initial training scheme lasting somewhere between a day and several weeks.
Also, it is on the part of franchisor to offer assistance related to site selection, lease negotiation, site set-up, financing and recruitment.
Franchising is often defined as a more supported route to business ownership. If a franchisor compromises with the quality of support to be provided to the franchisees, he limits the chance of success of entire franchise network.
Franchisee is always a partner in the franchising business. When the franchisee/franchisor relationship is successful, the franchise is bound to flourish.
Like any other relationship, the present one demands honesty and transparency. A successful franchisor is an honest one and always open about snags, if any faced by the business at present or may be in the near future.
He is always up to adapt with the space of time and learns from the mistakes, ensuring that the same gaffes are not repeated.
As a franchise partner, it’s important to stay updated and informed at every stage about the latest developments at the franchise level and how the same can impact your business growth. To conclude, it can be said that the more help you get from a franchisor, the better chances of success exist.
3. PROVEN TRACK RECORD
When a brand has proven successful with multiple franchises, it multiplies the chances of success for your franchise as well.
When an investment is made in established franchise, proven concept and track record is also obtained. When buying a franchise, the labor of starting a company should have been done for you already and you should be getting a proven track record.
A proven track record is inclusive of increased visibility, good customer engagement and a magnificent financial report giving an idea of profitability of the business.
So, when planning to invest in one of the best franchise opportunities, do dive into their track records first. Franchises with a less proven track record might be successful however, there exists a higher risk.
4. ESTIMATED BRAND REPUTATION
Franchise is as good as its reputation. Brand reputation is a valuable selling point and is one of the most advantageous qualities of a profitable franchise.
It’s indeed a toilsome exercise to build the trust among customers for your brand however, if the business that you will be franchising already has an established brand reputation, you need not grind away for getting the attention of customers. Investigate about the following, when planning to explore business franchise opportunities:
- How far has franchisor established their brand reputation: Is it nationally or globally established?
- Take time to know the brand.
- Track the history and records of the business.
- Look for online reviews, ask acquaintances and always look forward to fetch more information about the brand.
To sum up, what is to be said is that don’t underestimate the significance of a good reputation.
5. GOOD MEDIA RELATION
Press/Media relations is one of the best features. When a franchise has a good media relation, it can help you create brand awareness on a national scale.
Good media relations can help you develop in the local market and Media relations experts can help you reach your target audience along with organizing events and promos to increase your brand visibility. So, don’t forget to probe into brand’s media relations too.
Franchise Insider provides plenty of franchise opportunities for aspiring entrepreneurs seeking to invest in franchise and earn lucratively.
Dhinal Baxi is a founder of franchise Insider. As a founder, he has served hundreds of clients. His experience from the financial sector has helped them to achieve great success in the franchise world.