What makes a franchise successful

Greg Nathan, Australian franchise Guru of Franchise Relationships Institute, who often presented at FASA’s conferences found that successful franchisees consistently do a number of things that can be grouped into four key areas.

Firstly, they keep track of information and trends that tell them how their business is performing. This of course means they can use a computer, read figures and they spend time each week tracking their performance against set criteria.

Secondly, they set achievable goals because they are outcome focused and slightly competitive by nature. It is said that luck is where preparation meets opportunity. A successful franchisee takes advantage of opportunities to promote and grow their business because they have a vision for the future of their business.

Thirdly, they understand that all the analysis and visioning in the world won’t get them anywhere unless they are prepared to work hard and maintain high standards of service delivery. This means they are highly organized and plan their life so they can sustain the long hours and family sacrifices necessary to launch and grow a successful small business.

Finally, they understand that business is ultimately about people and that unless they gain the support of the people on whom their business depends, they have nothing. I am not just referring to customers but also their staff, their family, their suppliers, their franchisee peers, and even their franchisor.

Trends that keep you in the forefront of sustainability and competitiveness

Eugene Honey, of Adams & Adams and FASA’s legal advisor gives us his tips to long-term sustainability and success. These trends may vary broadly and depend upon the relevant industries in which the franchise systems operate. Nevertheless, an awareness of and consideration should be given to the following:

Technology and systems

Technology and systems may improve communications, efficiency, competitiveness and client engagement. The use of artificial intelligence or AI should be considered, wherever possible and appropriate. Similarly, the introduction of platforms, portals, software, software systems, applications, including client engagement platforms, should be considered.

Health and Wellness

There is undoubtedly a trend towards healthy food, fitness and wellness. Where appropriate, these aspects should be considered for possible inclusion.

Sustainability, eco-friendly and social responsibility

In this regard, eco-friendly practices, reduction of plastic waste and ethical sourcing, are examples to consider.

Expansion – locally and internationally

It has become apparent that there is an increased level of creativity in the area of growth and expansion. These include co-franchising and micro-franchising. There is also an increased focus on exploring synergies and efficiencies within the franchise system or systems. In addition, there is also creativity and innovation regarding the use of different models, versions or concepts for different markets or locations, such as, for example, small, medium or large outlets, offering different ranges of products and services, to suit local demand.

Personalisation or customisation for customers

There are of course many ways of doing this, depending upon the relevant industry. Nevertheless, enhanced customer engagement and customer engagement applications, as well as customised services and products, at least to a small extent, may enhance the attraction and maintenance of customers.

Conclusion

In short, franchisors should be more organised, well prepared and ready for possible difficulties which may arise. Their IP and contractual rights should be in order, ready for protection and enforcement. To the extent this is in place, any necessary enforcement is likely to be more efficient, effective and cost efficient, thereby enhancing protection for the franchise system, in everyone’s best interests.

Greg Nathan

No-one understands what it takes to succeed in franchising like Greg Nathan. Greg has been a business psychologist for 40 years and is Founder of the highly respected Franchise Relationships Institute. His unique insights into how franchisees and franchisors can maximize their successes comes from his extensive research, and practical work, with over 550 franchise brands. Greg is author of several best-selling franchising books including Profitable Partnerships, and developer of many influential franchising models such as The Franchise E-Factor. He has also been the recipient of numerous awards for his contribution to the global franchising sector, including the IFA Crystal Compass Award for franchisor leadership, and induction into the Australian Franchise Hall of Fame. Greg’s enthusiasm for franchising, and his balanced, down-to-earth approach, come from his deep respect for small business owners, and his experience as a successful multi-unit franchisee and senior franchisor executive.