Most will be tempted to say it's the Brand and the track record.
Others will say that the product and the service they sell are excellent.
And others will say that it is the spectacular location that the different franchises have.
Neither of these answers is correct.
The most important part of a franchise system is, as the name implies, THE SYSTEM.
That is, a set of procedures ordered and based on experience, which produces a positive result with respect to the amount of money that was allocated when the commercial premises were installed.
And sadly, we see a lot of improvisation. It seems that it is enough to say "we sell franchises" so that a lot of potential franchisees will instantly appear, and then we see how we work it up.
"Franchising?", But it's really easy! "
Image of Ryan McGuire in Pixabay
Several times I referred to the danger of “fatto in casa” (homemade) montages.
I invite you to do an exercise. Go to a franchise store that is familiar to you, I mean an established brand, for example a well known fast food store. The best are scattered throughout the country. Place your order and sit near the checkouts. Watch everything that happens since a customer walks in and places an order. Take a good look at each employee involved and all the actions they take consistently. ¿Do you understand what I mean?
You are seeing a system in action.
image of StockSnap in Pixabay
(count the number of fries they gave you, come back tomorrow and count them again)
If you want to sell franchises and make this a memorable event, then you have to have your entire operation systematized, each job with a perfectly documented job description, each situation that may be presented well studied with a decision tree and its corresponding answers, and a perfectly controlled flow chart for each sector and each position. Be sure to include in your Operations Manual, a FAQ section, to assist your franchisees in making decisions within an established system.
If not, you run the risk of setting up a mere network of distributors or operators of your business, which has nothing to do with a franchising system, even if you say that you have several franchises in operation.
image of John R Perry in Pixabay
Great autonomy is expected from franchisees to resolve situations in remote territories, but framed in a SYSTEM. If you don't have a franchising system, you can't sell franchises. If you do, you may have problems, and some of these may be serious.
Now, if you don't have a different concept, a competitive advantage, something that cannot be copied, then you won't be able to systematize anything. And then, what are you going to sell? The same as your competitors?
It is not about inventing gunpowder because it is already invented. A competitive advantage, that is, something that you cannot copy, can come from several sources, for example a unique product, for example a very good and unique agreement with some supplier, for example a unique skill, for example some special scenario’s issue, for example a special agreement with a group of clients.
If you achieve a competitive advantage, then you can systematize a concept, and if you want, only then you can think about selling franchises.
The rest is “chamuyo” as we Argentines say. (“coaxing”)
Thank you for reading!
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