The following excerpt is from Rick Grossmann’s bookFranchise Bible. Buy it now fromAmazon | Barnes & Noble | IndieBound
Following are some tips and strategies you can apply to build a thriving franchise organization and community.
Company infrastructure
As a would-be franchisor, you must realize that your current management, operating and marketing techniques probably are insufficient in many ways for a successful franchise operation. For instance, a good computer sales employee isn’t necessarily a good computer franchise salesperson. A good field manager isn’t necessarily a good franchise manager, particularly when it comes to supervising multiple, independently operating franchisees. Company managers who have trained company employees informally, one on one, might not be qualified to adequately train a group of potential franchisees who have a significant amount of their savings at stake.
In addition, present advertising media suitable for selling a product or service at the retail level isn’t necessarily suitable for attracting qualified people with adequate capital interested in purchasing franchises. In short, your previous experience and knowledge of your business may not necessarily be the same experience and knowledge required to successfully operate a franchise business.
To be successful, a potential franchisor must have built their own business, no matter what size, on a sound foundation of well-trained personnel, good marketing techniques and an adequate working capital structure. These foundation blocks are the same for a successful franchise operation as well, but as a franchisor, you’ll need to view them from a different perspective and utilize different skills.
What makes your franchise special? Why would people want to invest their hard-earned money to buy your franchise over the others? These are questions to get you thinking about your franchise offering. You’ll want to offer your franchise owners training, support and tools to make more money and spend less.
Buying power, approved suppliers and other revenue sources
One common benefit that will impress and help franchise owners is your ability to save them money for products, supplies and services. This is an example of collective buying power that a franchise organization can offer.
This usually comes in the form of discounted pricing that you can pass through to your franchisees from the approved suppliers you’ll specify in your franchise disclosure documents and operations manual. You may be surprised to learn that your suppliers may be willing to offer better pricing once they’re notified that you’re franchising your business. Your suppliers will benefit by selling more as your franchise network grows, so they should be willing to work with you to keep your relationship. If they’re not, it’s a good time to shop around for suppliers.
Facility evaluation and selecting your central office
A common challenge for new franchise organizations is their first impression to prospective franchise owners when they’re just starting out. Most “early adopters” understand that a new franchisor is in…