Franchise World: Tips for success in franchising

Tuesday, December 12, 2006

Tips for success in franchising

Looking for topics to comment about in this weblog I come across many articles in which franchising experts give their view on what defines a successful franchise. This, of course, is useful information for anybody that’s thinking about becoming a franchisee. So over the next couple of weeks I’m trying to create a list of tips on how to become successful in franchising. Here’s what I have so far:

Good personal relationship between franchisor and franchisee
Flow of ideas between franchisor and franchisee
When franchising abroad, adapt to the local customs, laws and taste
Franchisees should set financial and ‘quality of life’ (non-financial) goals
Franchisees should create a detailed business plan to attract potential investors
Franchisees should be aware of all of the costs of a franchise (franchise fee, advertising fee, office rent, staff wages, etc)
Before starting a franchise, talk to other franchisees of the same franchisor

Leave a comment if you have a useful addition to this list or if you disagree with any of tips already listed. I hope it will result in a list of quality tips for potential franchisees. I will re-post the final list at the end of January.

Labels: franchise, succes, tips

4 Comments:

I saw your posting and want to share with you how my client, Wireless Toyz is a good example where franchisees with passion for the business are typically more successful. Wireless Toyz was founded on the realization that even knowledgeable consumers of wireless products and service are overwhelmed by rapid changes in technology, confused by too many choices and intimidated by ‘techie experts.’ A successful Wireless Toyz franchisee actually looks forward to every frustrated customer and unique problem that walks in the door. Patience is a plus, but what really characterizes their consistent sales leaders is a passion for solving problems, one customer at a time! Learn more about how to choose a franchise or determine whether a franchise business is right for you by contacting Richard Simtob at 866-2FRANCHISE or email him at franchise@wirelesstoyz.com. You may also visit www.wirelesstoyz.com/franchise for more information.

By Enuresis Treatment Center, At February 28, 2008 5:03 PM
I know this is old, but I like this post. I'll have to keep it in mind because I plan on running my own business soon. I know it’ll be challenging, but I’m up for it and will appreciate all the help I could get with the ins and outs of running a business. Instead of starting one from scratch, I've thought of buying a business. Any suggestions? Advice? Thanks.

By Marissa Pratt, At October 17, 2008 6:28 PM
@Marissa - It will be challenging, especially during this times, but don't let things bog you down. It'll be very rewarding in the end when you love doing what you do. That being said, I suggest weighing the options of buying versus selling. There are a lot of resources for buying a business. I know of this site called BizTrader.com, which is an online global marketplace where you can buy or sell a business. You can also use for other services, like finding a lender, or a broker. I also suggest checking out your local small business groups. Like, the site, you'll be able to know what's available in your area.
Good luck!

By Grace T., At October 20, 2008 3:34 PM
Hey Marissa,

I started this blog years ago as a school project, didn't think anybody was still reading it :)

Anyway,

I think the first question shouldn't be whether you want to buy a business or start a new one. You should ask yourself what it is you want to do. If you have a great idea or new product then the obvious choice would be to start a new business from scratch. And if you want to sell fastfood, other people have already done a lot of your research and probably set up a restaurant in a good location. In this case your better off buying a business.

I guess what i'm trying to say is, first see how original your idea/product is, see what other people or businesses have done in your field and work from there.

A big difference between buying a business or setting a new one up is that the latter generally takes more money, time and effort before you see results.

Hope this helps. Good luck.

By Thomas Nomden, At October 20, 2008 8:35 PM