Franchising has become a popular way for entrepreneurs to ride the coattails of established brands. But building a successful franchise is more than just signing a franchise agreement and hoping for the best. You need a strategy, a business plan, and a focus on both the operational and marketing sides of the business.
This article will walk you through some key steps, such as understanding the legal aspects involved, including working with a solicitor, to developing a strong marketing plan, and ensuring you’re set up for long-term success.
1. Comprehensive Business Plan
A solid foundation starts with a business plan. Whether you are opening a new franchised business or growing a successful franchise operation, you need a business plan. This plan should include your business concept, goals, financial projections and a detailed breakdown of the franchise fees and costs involved.
Your business plan must define your business system – the operational blueprint for your franchise business. Include the franchise fee, initial investment, day to day operations and how you will manage and scale the business. A good business plan is often the difference between a struggling franchise and a successful franchise owner.
2. Choose the Right Franchise
The key to running a successful franchise business is choosing the right franchise opportunities. Look for franchises with a proven track record in your industry of interest. For example globally recognised brands like Dunkin Donuts have established franchise systems that new franchisees can rely on for operational and marketing support.
When evaluating franchise businesses consider brand identity, market demand and the support from the franchisor. The right choice will give you a strong business model that has already been tested and refined.
3. Get a Franchise Solicitor
One of the most important yet often overlooked steps in running a successful franchise is to hire a franchise solicitor. A solicitor specializing in franchise law, such as Darwin Gray, can help you navigate the legal complexities of franchising and ensure you are fully aware of your rights and obligations under the franchise agreement.
A franchise solicitor can help you:
- Understand the franchise agreement: Legal documents can be difficult to interpret. A solicitor will explain the terms, such as franchise fees, intellectual property rights, and termination clauses, ensuring you’re fully informed.
- Negotiate better terms: Some parts of the agreement may be negotiable. A solicitor can help you negotiate changes that protect your interests as a franchisee.
- Resolve disputes: If you encounter any disputes with the franchisor, a solicitor can represent you and help resolve the issue efficiently.
Having a solicitor like those at Darwin Gray will help you avoid costly mistakes, protect your investment, and is a key step toward becoming a successful franchise owner.
4. Franchise Agreement
The franchise agreement is a legal document that outlines your relationship with the franchisor. It includes terms such as franchise fees, obligations, restrictions, intellectual property rights and use of the brand. A solicitor can help you:
- Interpret the terms: Legal jargon can be hard to understand. A solicitor will explain it clearly.
- Negotiate the terms: Some parts of the agreement can be negotiated. Your solicitor will help you negotiate changes that protect your interests.
- Comply: They will ensure you understand your legal obligations so you don’t have future disputes or breach of contract.
5. Marketing and Sales Plan
A successful franchise business needs a solid digital marketing and sales strategy to attract customers. The franchisor will provide marketing materials but as a business owner you need to adapt those resources to your local market. Invest in local advertising, build a community and use digital marketing to expand your reach.
Building brand loyalty with customers is key so focus on delivering great service and high standards that match the franchise’s brand.
6. Training and Development
One of the benefits of franchising is many franchise businesses provide extensive training to help franchise owners succeed. Make sure you and your staff get all the training you need to run the business according to the franchise system. This training will cover everything from day to day operations to customer service standards so you can replicate the success of other franchise owners in the system.
Continual development is key to business success. Stay up to date with the latest trends in your industry especially if you’re in a fast paced industry like food service or retail. You’ll also need to manage multiple locations as your business grows so investing in the right people and processes is critical.
7. Run the Business
Running the business efficiently is the heart of any franchise. As a franchise owner your role is to make sure the business is running daily. Key responsibilities include managing staff, overseeing service delivery and making business decisions around growth and expansion.
Having systems for inventory management, customer relations and staff training will help you streamline your business and be profitable long term.
8. Brand
In franchising your brand is key to your success. Customers come to franchise businesses because of the consistency and reputation. Whether you’re offering products or services your business should reflect the values and quality of the franchise brand.
Keep high standards so your franchised business stands out in the market. This includes everything from store design and customer service to marketing materials and local advertising. By building a strong brand you’ll increase your chances of franchise success.
9. Review and Refine
Finally a successful franchise business is one that evolves with the market. Review your business performance using KPIs to measure growth, customer satisfaction and operational efficiency. Refine your business by making informed business decisions based on those metrics.
Be flexible and open to change. Even franchisees of established brands need to innovate and adapt to changing consumer demand and competition.
Key Takeaways to Build a Successful Business
- Start with a solid business plan that outlines your goals, operational structure and financial projections.
- Choose a franchise with a proven track record and strong brand to increase your chances of success.
- Get legal advice from a solicitor to protect yourself and understand your obligations in the franchise agreement.
- Focus on digital marketing and local advertising to attract customers.
- Invest in training and continually develop your team and business.
- Keep high standards and reflect the franchise brand.
- Review and refine your business regularly.
So building a successful franchise business can be a great path for entrepreneurs. Follow these steps and use the franchise system and you’ll be on your way to being a multi franchisee in no time.
Summary
Franchising is a great opportunity for many entrepreneurs to start and grow a business with an established brand. From the franchise agreement to day to day operations running a franchise requires commitment, planning and customer service.
By doing these and using a solicitor to help you with the legal bits, you’ll get the most out of your franchise and build a business that will work in any market.
