There is a lot of work that goes in to preparing a business for becoming a franchise. There's a great deal of legal filings, financial paperwork and careful planning that an owner needs to have under control before she can successfully get her franchise off the ground.
However, a critical mistake that can harm a growing franchise as it starts is a franchise owner thinking that his job is done as soon as he finds a buyer for a new location. The Wall Street Journal states that among the most prevalent causes for a franchise failing are issues of poor management and a franchisee that doesn't follow the business formula. By staying involved, a franchiser can reduce these risks and find problems before they get out of hand.
"A franchise owner can ensure consistency at each branch."
How successful franchisers give management support
A business owner can help manage and monitor her franchises to ensure their success. According to Entrepreneur, there are several steps that a franchiser must take to help support the growth and success of the new owners.
For one thing, he shouldn't be absent from the additional locations. A good franchise owner will make site visits to his locations from time to time to make sure that each venue is running smoothly and aligns with the business's mission statement and branding. Not only will this help the owner to find any areas that need improvement, it will help build a strong rapport with his staff. A franchise manager who sees the founder in person and showing concern and investment in how the business is running will be more likely to reach out for help when necessary and will be easier to work with.
All Business adds that many franchisers will run some of the support roles, such as human resources and accounting. This keeps these essential operations consistent across all locations and will allow a franchiser to know early if there are problems with the way a particular franchise is operating.
Keeping franchises consistent
Consistency is a big key for a franchise's success. When patrons visit more than one location of a particular franchise, they do so because they expect to know what they are getting. If there is too much variation between the qualities that different locations provide, it can hurt business and the brand's image in the long run.
That's why many of the fundamental aspects of the franchise need to be orchestrated and monitored by its founder. Operation and training manuals should be the same for each location so that staff is aware of what is expected of them and how services are to be performed at each of the franchises.
Another way that a franchise owner can ensure consistency at each branch is by creating a list of approved suppliers. For franchises that have a large reach across the country, it may not always be possible to use the same supply for each venue. A good franchiser, however, will find similar suppliers that can work in the right areas to provide consistent products to each location.
Running the advertising plan should also start with the owner. While many franchisees will pay into the marketing campaigns, the owner should ensure that her branches are all using the same marketing materials to guarantee that the business is being represented uniformly and everyone is staying on brand.
Equipment and franchise industry piece brought to you by Marlin Equipment Finance, a nationwide provider of commercial lending solutions for small and mid-size businesses. Marlin's equipment financing and loan products are offered directly to businesses, and through third party vendor programs, which include manufacturers, distributors, independent dealers and brokers in the security, food services, healthcare, information technology, office technology and telecommunications sectors.