The Right Business System Will Help You How to Choose a Franchise
How do you choose a franchise when there are thousands of franchise concepts, ultimately finding the business that’s right for you? For starters, investigate two critical areas of each business: Concept and Business System.
When it comes to assessing franchises, one of the most important questions you should ask as you assess potential franchise investments is, “How does the franchisor provide its product in a way that it can replicate success in each new unit?” In other words, what is the business system?
When we talk about these systems, we’re talking about how the franchising company accomplishes everything that happens in the business. How do they do hiring, training, purchasing, marketing, product delivery, billing? What technology is implemented in these processes? As you gain more knowledge of individual companies, you can—and should—be impressed at the efficiency and comprehensiveness of their systems. Great franchises leave little to chance—they have all the steps to success broken down into simple, meaningful, clear processes. And those steps mean that you should be able to see the uniformity from one unit to the next, or experience it in terms of marketing, responsiveness, product offerings and professionalism, if the company provides a service.
You won’t be privy to the inner workings of a franchisor’s systems at first glance, but you should be able to get a sense of efficiency and capability in any interaction with the company. Can you appreciate how the franchisor, franchisee, and customer are in a win/win/win triangle? Do you feel like you could count on this company if you were a customer or client? What about as a franchisee? If so, think about where your confidence comes from: I’d be willing to bet it’s rooted in the systems the franchisor has in place to ensure quality and consistency from each franchisee.
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Franchise Consultant and Author of HIRE YOURSELF