What are the Top Trends in Franchising a Business?
Franchising encourages the growth of entrepreneurship on a macro level. On a micro level, it allows you to expand without exhausting resources. With the right approach, opening up your brand to franchising can be a cost-effective option to help you reach other markets and bring your business to more consumers. Consider brands, like 7-Eleven and Subway, which operate thousands of stores worldwide.
Although this expansion strategy offers profitability, mistakes can turn a potential money-maker into a money pit. As such, it pays to know how you can franchise your business before diving in. You’ll need to draft a business plan that details your growth and strategy for a certain period, like in five years. You’ll also need to develop an effective operations manual for your franchisees. And you’ll need to accomplish the requisite legal documents, including the Franchise Disclosure Document.
When you’re ready, you can improve your franchise with these top trends in the industry.
Appropriate Brand Management Strategies
A franchised business comes with a lot of moving parts — and people to manage. You’ll not only have to still look after the company-run stores or offices. Now you also have to keep an eye on franchisees. Of course, you don’t need to do much if you have an efficient and effective screening process.
It’s important to partner with franchisees who have the business skills your brand requires. But don’t just focus on applicants with an entrepreneurial mind; find franchisees who exhibit the passion and commitment you’ll want associated with your brand. Once you’ve chosen the right franchisees, you only need to follow a system that allows you to cultivate loyalty.
Transparent Exchange of Information
Gone are the days when the success of a franchise only depended on normal business operations. Entrepreneurs are now highly encouraged to facilitate information sharing among all partners, including transparent flow of information about services and other product offerings.
Even face-to-face, frequent, and informal sharing of information between franchisees and franchisor cultivates commitment. This kind of exchange can lead to long-term relationship and success for all parties.
Employ a Mixture of Part-time and Tenured Employees
A combination of varying employment options may minimize operation costs, which is especially crucial for volatile business environments. This can also help create more opportunities and even offer a wide variety of clientele and workforce to deploy while maintaining high standards of quality at all branches of a franchise.
A Market-Oriented Approach
Studies have shown that franchisees and internal employees find it is necessary to have a market-oriented approach. For one, any company that undertakes this can become competitive and relevant in its industry; with a clear market orientation, there is clear competitive advantage. Other studies have also shown that having a market-oriented approach among new members helps a franchise become more attractive and even leads to an increase in franchisee satisfaction.
Trends can guide you toward better strategies, allowing you to adjust methods to fit market conditions. But if you’re still uncertain about opening up your business for franchising, seek professional advice. Franchising consultants can tell you if your brand is ready and what strategy will give you lucrative results.