A few weeks ago at The Franchise Show, Rachel Elnaugh gave some brilliant advice to those considering a franchise business opportunity and those looking to expand their business through franchising. Specifically, Rachel recommended:
For franchisee candidates:
- Choose a franchise that you love the idea of running; not simply because of the money potential.
- Conduct due diligence. Research the company, its directors and be sure to speak to as many existing franchisees as possible.
- Make sure you're a cultural fit to the ethics and values of the business.
- Conduct market research. You need to understand the competitive landscape for your local area.
- Temper expectations; while the franchisor will provide a wide variety of tools, you still need to work hard to make the business a success.
- Don't fall into the blame game. Take absolute responsibility for the success of the business
For established businesses looking to grow network through franchising:
- Ensure your concept is absolutely proven before franchising. This would include a complete review of products/services, pricing strategy, marketing, systems, training, etc.
- Be very picky about the franchisees you select as if they aren't successful, you won't be successful.
- If someone isn't working, develop a plan for improving. If that doesn't work, exit them quickly and with good grace.
All very sensible advice if you ask me!
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