Successful franchise systems

The most successful franchise systems today are of a „lean system centre“ controlled. This franchise company focusing its system work centres mainly on good communication and a constant expansion. It should be noted, however, that the system centre possibly „grow“ with the size of the franchise company needs. A higher number of franchisees is automatically also an extra effort to support services. This overhead should be from the head office, where appropriate, already anticipated.

The search for new franchisees

The importance of adequate staffing is often seen already in the search for new franchisees. Nothing can be the „business“ of a franchisor in the long run do more harm, than a slow to process inquiries from potential new franchisees. Especially in this area, a good workforce management is desirable. The quick response of the incoming requests is this useful for both sides: The Franchisor, in the casfe of a successful contract negotiation quickly integrate newly acquired partner in his company and the new franchisee can without unnecessary delays in starting a new job tomorrow. In the event of a negative outcome of the „application“ lose both parties unnecessarily much time and can quickly orient themselves independently again.

Daily cooperation with the franchisee

Even after a successful signing of the administrative burden increases with each new franchisee. In addition, this management tool has great benefits for both sides. The franchisor can convince yourself that its requirements are met by the franchisee. He also has the option of the franchisee (especially pending inspections) with any existing issues to assist. For both instruments is a timely evaluation of the results for both sides: The franchisor needs the information obtained in order to non-compliance of regulations countermeasures quickly and for the franchisee to provide the findings are an important criterion of its daily work. It corresponds to its own interest, to keep as closely as possible to the requirements of the franchisor. Finally, the concept has already proven itself in the market. The administrative costs can rise over time.

Unlike a „normal self“, the franchisees are only partially able to solve problems quickly even (especially in IT and Accounting). Therefore, franchisees should have confidence that the appropriate contacts are also accessible via the console.

The heart of a franchise business: The system centre

There are many franchise systems in various industrial sectors. Particularly with regard to the financial investment that is coming to the future franchisees, the decision is often based on the services offered by the franchisor. The better the prospective „lifted feels“, the higher the probability that he together with its new franchisor, the plunge into self-employment is.

To win as many satisfied franchisees, the system centre must therefore always seek the franchisor with many competitive advantages.

This increases both the attractiveness of the concept for franchisees and the enforcement power of the brand. Among the main tasks of the system centre of a franchise company include:

  • Development, improvement and renewal of the system
  • Integration and support of recruiting franchisees
  • Training new franchisees and their employees
  • Development and implementation of marketing plans and national advertising campaigns

The focus of a franchisor (and of course its system headquarters) must dagger from the beginning to the consistent brand building are. In order to accomplish this quickly and effectively, you need the respective franchise system to include the following features:

  • Easy reproducibility of business and corporate image
  • A simple and easy brand
  • All operations must be easy to learn

The business concept must be well crafted and to be with unique features. For the end user, as well as for the franchisee, must be evident, what he can expect from a particular brand.

A standardized appearance (corporate identity)

This includes aspects such as the fall colours in the retail outlet (more about this you can read on, the expressive design of a logo, the careful and consistent selection of furnishings and decor, etc.

If you look at the preceding list is considered accurate, it is obvious that it is the right branding is more than just a „well thought brainwave“. Anyone wishing to sell his business idea as a franchisor, who needs more than just a good business idea. Accordingly, it must be development and management team (ie, the employee’s system centre) put together. When selecting the right employees portfolios always be remembered here that, the system centre is the central control unit of the franchise system. Ideally needs of future franchisor good employees in the following key areas:

  • Marketing and Public Relations
  • Recruitment and support of franchisees
  • Product development and knowledge management
  • Establishment and development of the brand name
  • Accounting and Controlling
  • Communication

Why do franchisees fail?

Insufficient or incorrect qualification

After all, nearly half of all start-ups fail within a relatively short time at that point. There are some rules that must be followed when taking certain actions (such as the master’s examination in a particular craft or existence of the of health certificates for working with food). Previous experience or qualifications must therefore with the selection (or development) of a business idea to play a major role . For example, it does not make sense to opt for the opening of a one-man translation agencies when not have the necessary language skills, has the contracts to the full satisfaction of the client handle. Even with the decision for a particular franchise system should therefore better of his professional experience and his talents are guided by the idea as „something completely new things“.

Inadequate planning

This point is closely related to the above-mentioned lack of information but with the fact that „in the heat of the moment“ often overlooked important things. Typical here is the statement: „I thought I had seen …“ This situation can one carefully elaborated business plan to create. With its help, you can understand the strengths and weaknesses of your concept. Then consider what measures you will take to start and run. The risk that something important is forgotten it takes in from felt. Since a detailed business plan is both a prerequisite for successful negotiations with banks and resources for gathering information, it should be central to the planning of any business start-up (whether as a franchisee or independent entrepreneurs).

Family problems

The backing and support within the family should be discussed at every start-up plans in advance. As head of a newly formed company you are, especially in the early stages, must work much more than in an employment relationship. This will be, but also your family to be clear. A good sophisticated time management, discussed with all family members in advance can help. If you are „working“ well planned, it should be possible still be able to spend enough time with your loved ones at home.