What Makes a Good Franchise? Here are 7 Reasons to Buy One

Are you thinking about investing in a franchise? Franchising provides great opportunities to potential franchisees. Plus, since it’s a turnkey investment, it’s fast and easy to start. But not all franchises have an excellent track record. And some are risky investments. Before you decide which franchise to invest in, what should you look for in one? Here are the criteria of what makes a good franchise.

1. Offering Support

Franchises are required to support their franchisees. That’s a given. But what kind of support should they give to franchisees?

• Location
• Marketing
• Business tools
• Communication
• Advice
• Reduction of supply chain costs
• Financial assistance
• Administrative support
• Customer service
• Business plan
• New products and services to innovate
• Training

These support points may not be present in most franchises. But you now know which ones are essential to saying yes to a franchise. If you still need clarification about what you want, fellow franchisees are the best people to ask about this list. They have a first-hand account of what’s happening and know the franchise’s ins and outs. And you can inquire about how the franchisor has helped them so far. 

Aside from the support provided by these franchisors, another form of support that franchisees look into is discounted franchise fees. If you’re a veteran or retiree, you can consider various franchise options to help you start a business.

2. Growing a Community

Franchisors love seeing their business expand to other locations. Most franchisors want to see their business serve communities to address their needs. Plus, with a new franchise in a small town or underserved area, you can employ the people to help your franchise become successful. Aside from growing a community, some franchises donate to pay it forward and show appreciation to the people.

3. Training

Training is a must in all franchises. For example, quick-service franchises follow standards in handling food. In some cases, service-oriented franchises observe guidelines in dealing with customers. Those considerations are taken into account. But training isn’t limited to serving its customers. Of course, training should include management and technical processes.

4. Finding the Right People

It’s the franchisee’s job to find the right people for their business. But franchisees need to know that finding the best employees also contribute to the franchise’s overall success. A franchise operations manual should contain the details on how to hire the best fit in your franchise. But you can also consult your fellow franchisees in finding the ideal employees.

5. Establishing and Developing a Brand 

Franchises can be focused on growing their business. But a great franchise knows that a solid brand is key to branching out their business elsewhere. As a potential franchisee, you are also a significant factor in helping franchisors grow their brand. They will expect you to uphold their branding guidelines. Plus, you will use marketing and advertising strategies to grow your franchise.

And as a potential franchisee and brand ambassador, here are questions to ask before investing in a franchise:

• What does the franchise offer from the others?
• Are they an established brand or a growing one?
• How do they connect with customers on social media or their website?
• What values matter to them?
• What marketing or advertising strategies does the franchise use to attract more customers?

6. Allowing Open and Honest Communication

Although communication is part of the franchisor’s support, we need to stress communication as a separate point. A great franchise allows franchisees to speak about their needs to achieve their goals. Franchisors should also communicate their goals and plans to ensure they’re aligned and on the right track. This, in turn, is what makes a good franchise.

If you have innovative solutions or ideas, bring those up with your franchisor. This works, especially if the franchisor is open to hearing those new ideas. This will put you on the radar and listen to how you can improve the franchise and help them succeed.

7. Providing Updated and Newer Tools/Inventory

A good franchise doesn’t settle for less. They know that technology is constantly updating and developing. Cutting costs won’t be enough to ensure a company’s success. It’s important they get the best tools available to run the franchise smoothly and properly. 

The same goes for inventory for consumer products. They should give you ample inventory and supplies to serve customers. Plus, they should help you in reducing your tool and inventory costs.

Final Thoughts

As a potential franchisee, you need to research your possible future investments. That said, choosing a “good” franchise takes time. It’s not a must that a franchisor must possess all the qualities we listed above. But, if you tick most of these boxes, you are in for a good investment in the long run.