A successful franchise business requires the right leadership behind the business and at the helm of the franchisor. There are many aspects of franchise development that seem somewhat obvious and possibly more tangible in nature, such as systems, technology, processes, and franchise marketing systems, but what is lost for many entrepreneurs are the responsibilities involved. fall on your shoulders in this transition. from an operator and “maker” to a franchisor and “master” it happens.
Generally, these types of qualities and characteristics can be determined in advance of the franchise to save time, money, and heartache for everyone involved. The importance of a true self-assessment is required to make this determination as an entrepreneur considering the franchise expansion model.
For one thing, franchising requires intense levels of patience and the ability to train people who have had no experience as business owners. Some entrepreneurs have a hard time working with people they may consider weak or inept and may not see things from the perspective of new franchise owners. If a business owner’s skill set lacks the patience and willingness to mentor people, franchising may be the wrong way to go in business.
Next, franchising requires a certain degree of selflessness. Large franchisors are continually looking for ways to help, support and generate profits for franchisees. Underperforming franchisors cut corners, look for ways to rip, and have a singular mindset for their own benefit. These are the franchise systems you read about where judgments are made and franchise brands are rapidly falling apart with poor management decisions fueled by greed and myopia.
Also, when you franchise a business, the returns are not short-term. Franchise development is an effective way to build a brand quickly and grow your business into new markets quickly. Unfortunately, franchising is not very profitable during the first 1-3 years of growth due to the nature of the business and the need to reinvest in the business model, marketing, and infrastructure required to support growth. Entrepreneurs considering franchising who need or are motivated by short-term cash flow are probably better off finding alternative growth channels.
So a good franchisor is someone who has a strategic mindset and has a vision of where the brand and business model will go. Vision is not a trait that can be taught, you either have it or you don’t, and as a franchise network leader, you must be able to create energy around your ideas, have new strategies that are relevant, and a never-ending commitment to your brand and what it stands for. These are the reasons why franchisees not only invest in a system, but continue to invest and believe in their commitment to a franchise. If you lack the leadership and ability to convey your vision opportunity and how it will benefit others, franchising will be a short-lived venture with disappointing results.
Do your due diligence and understand if you are compatible with the franchise growth system.
