In today’s post, the FranNet team shares 4 franchise assessment strategies to inform your preliminary research process. Read on to learn 4 things you should expect from a quality franchisor and find out whether your chosen brand is best for you.
- Top-notch training and operations materials. Franchisors have a responsibility to provide clear operational guidelines, and these should be reinforced by quality training. These two components make up a considerable portion of the “value” of franchise systems; training and reference material are what allow new franchisees to hit the ground running, even in unfamiliar industries. They’re also keys to maintaining the product or service consistency that your franchise is built around.
Fortunately, comprehensive training and operations materials are quite common, since they also benefit the franchisor. Beyond the obvious ways it helps maintain brand consistency and maximize intrasystem productivity, quality training and operations materials also give franchisors greater integrity. Rather than giving arbitrary “orders” to franchisees and coming across as bossy micromanagers, franchisors are able to point to best practices that are represented, mandated, in referenced in their operations materials.
Assessing the strength of a franchise’s training and operations materials can be tricky during the preliminary application stage. Look for information on the company website, then compare that with what you see in the Franchise Disclosure Document (FDD). Alternately, you can visit franchise locations in your area and ask their owners point-blank.
- Healthy and responsive communications. As with most relationships, the key to success in franchising is communication. Life and work get hectic, but that’s no excuse for franchisor-franchisee communications to break down. In many cases, franchisees are new to business ownership, and franchisors should be sensitive to the fact that these greenhorns will need support. It is critical that your chosen franchise has the infrastructure in place to support speedy responses for questions, inquiries, and calls for help.
Though it isn’t always a reflection of the franchisor’s greater communicative infrastructure, you can begin your assessment of their responsiveness after you make the first contact.
- A strong brand reputation. It might sound like you’re asking a lot, but if your chosen franchisor’s reputation isn’t enough to attract customers in your area, they probably aren’t worth your time or investment. There are exceptions to this rule, of course, especially for people looking to get in on the ground floor of a promising new venture. That said, the brand reputation is a big part of what you pay for when you hand over the franchise fee.
The FDD will tell you more about the brand’s legal history, but a quick Google search for reviews can also really help your research and investment decision.
- Support services that are commensurate with your start-up costs. Some franchisees make the mistake of jumping on the cheapest franchise opportunity they can find. High-priced franchises aren’t necessarily a bad thing; in fact, they’re often great investments, giving you premium operational processes, training, and support services. Everybody’s budget is different, but it really doesn’t matter if you spend a little or a lot, so long as you get what you pay for.
Unfortunately, assessing the extent of a franchise’s support services can be difficult during the preliminary stages of your research. But don’t worry: we can help. Visit http://www.frannet.ca to inquire about our free research support services.
About FranNet Canada
FranNet is a 29-year-old company with roots in the U.S. Its purpose being to nurture every entrepreneur’s dream of business ownership. We actively employ a specific profiling and consultation method. This method is geared to each investor with a specific business model and based on franchise trends typically found in Toronto, Ontario, Vancouver, British Columbia, or Calgary, Alberta. The most lucrative Canadian franchise opportunities are waiting for you. For more details visit - http://frannet.ca/buy-a-franchise/canada-franchise-buying-process/