How Do I Make My Franchise Successful?

Making any business reach its full potential takes a bit of talent and a lot of hard work. If you've selected your franchise well, your franchisor will be able to help you avoid many of the mistakes new, independent start-up businesses make. From established brand guidelines to large-scale marketing initiatives, the franchise operation strengthens your entrepreneurial journey. Below, we've listed 10 keys for franchise success.

Make sure you understand the financial commitment.

Determine how much you have to invest, how much you're willing to risk, and how much you will need to live on for at least 12 months.

Understanding the initial investment required is essential. Two important factors to consider are:

Initial franchise fees: A one-time payment made to the franchisor to use their intellectual property, like their name, trademarks, and business system.
Minimum liquid capital: This is the capital that is easily accessible and expendable in the initial investment of your business.

As a potential franchisee, make a careful and rational decision about buying the franchise. Listen to your attorney and accountant and pay close attention to any legal documents involved in the process. Do not be pressured by the franchise salesperson.

Follow the Franchise System.

Franchisees often get their business up and running and then begin to change, add, or modify existing products, advertising, hours, services, and even the quality and consistency they are licensed to deliver. This violates the franchise agreement and puts you in jeopardy of having your franchise terminated!

By following the system, you:

Preserve brand identity and brand consistency
Protect your investment and that of your fellow franchisees

Don't neglect your family and friends.

Be prepared to work long hours, but also make sure to budget time for your family and friends. Don't forget to acknowledge the sacrifices your family makes.

Allow your family and friends to share in your new life. A happy franchisee is a successful franchisee.

Be an enthusiastic business owner.

The success of any business is linked to the level of enthusiasm you bring to the job.

Enthusiasm brings a level of excitement and energy to the operation that everyone can feel-including your staff and potential customers.

Let your staff in on the fun. Acknowledge their good work with recognition or a raise.

Recruit the best and treat them with respect.

Good help is hard to find and great help is essential.

To keep the good staff you've hired:

Rotate routine and boring jobs.
Work with your staff to develop the schedule.
Treat your employees with respect.
Don't allow employees to be disrespectful to any other employee.
Keep employees informed of new marketing campaigns and other promotions.
Remove hassles-ask employees which procedures are working and which aren't.
Make their workdays engaging.
Provide timely performance reviews and wage salary increases.
Most importantly, be fair.

Teach your employees.

Employees are your front line and in franchising, training should be continuous. Here are some best practices we’ve gathered over the years:

Training classes are a good way to show your employees they matter to you.
Get all the training you can from the franchise brand.
Regularly train and retrain all your employees.
Hold refresher and advanced classes regularly.
Alert your franchisor when you need additional training.
Go through the operations manual thoroughly to improve your business acumen.
Take advantage of every training opportunity, whether it's offered by the franchisor or by local schools, trade associations, and other sources.

Give customers great service.

The most important thing you can do is to get everyone to smile!

Let the customer know you're happy they chose your business. This is the core of building a successful franchise.

Get involved with the community.

Customers like to shop in places that support them and it's a great way to build brand awareness in the community.

Here are some ideas to kickstart your community involvement:

Sponsor Little League team
Support a civic or youth group
Give tours of your business for school groups
Set up a kiosk at community events

Stay in touch with your franchisor and other franchisees:

Stay in communication with the franchisor: Letters, newsletters, emails, phone calls, faxes, training classes, regional meetings, conferences, and conventions are all ways to keep in contact.

Communicate with other franchisees by participating in the franchise owners association.

Watch the details.

Success is in the pennies! If you watch your pennies, the dollars will take care of themselves.

Minimize costs and maximize sales.
Watch out for shrinkage (merchandise that is missing or unaccounted for).
Work hard every day.
Choose your time away from the franchise wisely.

Franchise ownership is a great journey for entrepreneurial minds. Whether you’re just getting started or are seasoned with experience, the International Franchise Association has many resources to better equip you to be a successful franchise owner.