KEY ASPECTS TO SELECT A FRANCHISE OR A MASTER
Sometimes the notoriety of the brand dazzles. Being a brand recognized by the general public should not blind us when deciding to invest in franchising.
Other times the originality of the business, the scarce competition or the wide network of franchisees, relax the analysis and seem to decant for those factors the decision.
That the expansion team when you sell the franchise tells you about sales figures, great returns and demonstrate them objectively is fine.
But then I propose six points that can serve as proof of cotton for any franchise. If the expansion teams just tell you about them ... they're selling you blind.
To my mind, the key points in order of importance would be:
This a famous Spanish advertising.
1.
Structure.
The franchisor must have specialized equipment, must create value through its central services. If we basically seek to replicate successful business, the franchisor must know how to maintain these patterns with total reliability, that is, it is not enough to train them, we must support them and that support must be continuous and maintain constant quality levels.
Therefore, asking a franchisor for his internal organization chart is one of the best indicators of the degree of attention of the franchisor in his network.
It may be strange, the franchisee is still not within the organization and the information can be perceived as confidential, which it is, but it is also necessary to give value to this area of the business.
Up to here would be the photo. If in addition, there is a very dynamic HR management, look at what their demands for internal office work, support the franchise network or own stores, we would have a good indicator of the dynamism of the company, how much more specialization required, more positive for the network is.
2.
Innovation. Replicating the initial successful business without hardly introducing improvements over time, we would all sound strange, the market changes is competitive. That the franchisor explains to us what his latest innovations have been, commercial, marketing, processes, logistics, information management systems ... demonstrates a search for efficiency, which normally seeks profitability to continue growing using the new resources generated even more efficiently . I'm not talking about advertising campaigns, which are very good, it would be rather CRM management for example ... An advance that comes linked to that investment is also necessary, to demonstrate that times or conversion ratios or management indicators improve . It is a very global analysis, but it will give you a good indication of the pulse.
3.
Brand communication.
Tender to capitalize all your value as a company on the brand is something necessary for any company. Talking about how to communicate, position and improve corporate reputation is to think long-term.
4.
Information systems.
It is not obligatory, but if very necessary, the more evolved the information systems (accounting, management) of the franchise and integrated are with the franchisor, the more prepared is the firm to make decisions.
5.
In the case of masterfranchising ... an specific marketing plan for the launch in the country and / or experience in launching in new markets. Even if the business is very disruptive or the brand is known, without generating adequate brand communication in the consumer, everything will go very slowly and uncertainly. I do not only say that the franchisor generates a structure of a service center at a local level, but that the brand is adapted and communicated in a way adapted to local consumers-customers. Taking into account the time factor, the vini, vidi, vinci can be given, but better with temperance, prudence and continuously, so that it really takes root. The pilots are for something.
Finally, one might think that it would be necessary to add formative proposals, of course it is great, but having the previous points more or less to the day the normal thing is that it has it or it can put it to the day quickly.
6
Ask them about their weakest point. The value chain that is a company is only as strong as its weakest link "A chain is only as strong as the weakes link"
For me in a process of analysis these six points are how the bottom of an iceberg is what gives strength to the business model. The size of the franchise can be large in network or small, but as a company-organization they must have them.
If you are a franchisor, keep in mind these points before launching yourself, of course it is always good progress over perfection, not waiting for everything to be impeccable before taking steps, but be clear that focusing them will give stability to the project and in the they will accelerate it.
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