A misconception about franchising is that it lowers the level of quality in the business. While it is true that when a business grows, the business owner runs the risk that the new locations will not have the same standards of excellence as the original location. Business owners struggle with maintaining consistency among company-owned locations and rely heavily on managers to run their location in accordance with company policy. However the myth that franchising sacrifices quality is simply not true - in fact the opposite is more likely. Typically franchised operations outperform corporate locations. This is in part due to the fact that the franchisee is more motivated than any manager because the franchisee has invested his or her money to open and operate the business.
Picture this scene: It's 9 o'clock at night - closing time for the business. A customer rushes up to the door just after your manager has locked it. That manager would probably wave through the window and motion to the customer to return tomorrow morning when the store opens. A franchisee, however, as the owner/manager of the business, would unlock the door to take care of their customer. Does this seem familiar?
In times when customer loyalty and quality service is critical, franchising can assist in not only maintaining standards but also building market share. Keeping control over quality as you expand comes from the strength and quality of the franchise program you build. There are several keys to doing this.
Planning
You must decide on the best pattern for growth for your business. Knowing the right type of franchise you want to offer and the right region for growth is very important. Doing the planning up front enables you to make sure you are able to control your standards throughout your chain. By determining territory size, revenue streams, internal staffing needs, etc., you will be better prepared for handling the challenges of expansion. For example, a California-based business would have a difficult time supporting a single unit located in Maine, even if there is an interested franchise buyer there; with good strategy, you can prevent costly mistakes and make sure you have adequate resources to keep an eye on quality. Poorly planned franchises have trouble maintaining consistency.
Legal
In order to properly enforce your company's standards, having a strong Uniform Franchise Offering Circular (UFOC) and Franchise Agreement in place is critical. The legal documents define the relationship between you and the franchisee for several years. If someone is not following your guidelines, good legal documents will allow you to enforce compliance or remove them from your system.
Operations
Having a complete operations manual is crucial. This means not only the daily operating procedures, but also includes everything a franchisee would need to know to operate effectively. In order for you to enforce your standards, you need to define them for your franchisees. By having a manual that intelligently shows your franchisees how to properly run the business, you increase the level of quality they will produce. Without showing your franchisees the right way to do things, they may improvise which can sacrifice quality.
Training
You can often tell a successful franchise by the quality and quantity of their training. By creating a training program that is vigorous, you will be able to weed out bad franchisees before they open their own locations. Ongoing training and assistance keep existing franchisees happy and the quality of their work high.
Franchise Sales
Success in maintaining quality in a franchise program starts with the sales process. Treat the sales process like an HR procedure, like hiring a manager. Does this candidate understand your company's values and will they be able to perform as a franchisee? Are they a 'fit' with your company's culture and values?
Just as maintaining quality in your current business requires a commitment, so will maintaining quality in a franchise. It is important that you build your expansion program with the right foundation and use quality ingredients. It is not enough to simply value quality; you also need to be able to ensure quality. Having the commitment, the planning, and proper tools, you can build a company with dedicated owner operators who will share your passion for excellence.
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