How Should I Choose a Franchise?
So, you want to pursue a franchise model; now you’re searching for the right franchise to purchase. What makes a good franchise? What should you look out for?
Find an established and reputable brand. Look for brands that are leaders of the category you intend to enter into. A strong international brand makes it easy for you to market yourself when you are starting out. It would be a bonus if the brand also exists in your targeted locality as there would already be some level of brand awareness.
Allowances for Localisation
As a franchisee, you might like to have some autonomy to operate and customize your business in response to the local context. While some franchises impose rigid global or regional regulations, others welcome localisation as long as basic brand guidelines are followed (e.g. use of logo and brand colours).
A good franchisor understands and recognises the importance of catering to local market demands while balancing the overall needs of the brand accordingly.
Franchisee and royalty fee payments comprise franchisor support, from business reviews and annual training to marketing support and screening of employees. Find out what’s included before jumping in. A supportive franchisor will provide adequate resources to help you run your business.
A good franchisor will also understand how to motivate their franchisees commercially and reflect that accordingly in their fees.
Robust Franchisor Team
This is the most important aspect to franchising. A good franchisor will steadily empower you to grow your business. You’ll want your franchisor to be experienced, knowledgeable and skilled—one who can provide effective business solutions. More than that, you’ll want a dynamic and responsive franchisor who is passionate about your business.
Speak with franchisors and their teams—identify their business goals and aspirations and their approach to supporting franchisees. Request to visit or speak with other franchisees. The franchisor might set it up swiftly—this is usually a good indicator that the franchisor values and maintains positive relationships with its franchisees. A strong franchisor team will likely grant you success in your business.