As you consider starting your own business, you may be wondering what makes franchise businesses successful, especially when compared to individual startups. As we’ve discussed before, franchise startups have around a 90% success rate, compared to around 70% of independent startups. Since we are in the business of franchising, let’s discuss what factors lead to a successful franchise business.
Successful Franchises have a Proven Business Model
Part of what makes franchising an appealing option for new business owners is that the business model is based on the expertise and experience of current and former business owners—it has been tried and tested, and has proven to be successful. Rather than trying various marketing and networking strategies to see what will work in your community, franchising will allow you to begin with marketing materials and networking activities that have a high success rate in the communities of your fellow franchisees. The franchise business model also includes a full scope of information on running the business, including a Key Area Board to ensure that each aspect of the business is being managed by you and members of your team. Rather than spending the first few years of business operations trying different activities to see what works, you can begin with years of information about what works and use that information to recuperate your investment quickly.
The Franchise Operations Manual is Key to Franchise Success
In addition to the proven business model, franchisees have access to a full Operations Manual starting on day one. The Operations Manual is full of information on every aspect of the business, from marketing and networking to accounting and staff management. The Operations Manual is often a living, breathing document with frequent updates to stay current with business trends. This manual will be a key component to smooth business operations and is an invaluable asset—especially because you don’t have to work through years of ups and downs to create it.
Franchisees are Successful with Ongoing Business Support
As an independent startup, it can be hard to find good business support to help ensure business success. Franchise owners, however, are able to rely on the support of the franchisor as they get their business up and running. Franchise businesses offer support based on years of experience, franchise startups can plan for a smooth grand opening and first year of business. But even beyond the first few months of business operations, the true benefit of franchise ownership is ongoing support from the franchisor. This support may include weekly or monthly check-in calls, performance groups, new marketing materials, updated or newly created products or services, and—best of all—a listening ear on the good days and the hard days.
Franchisees Support Franchisees for Business Success
As a franchisee, you’re never in business alone—not only because of support from the franchisor, but also because of the support of other franchisees around the nation. These individuals have their own years of experience to draw from and are eager to share their expertise and successes to help their fellow franchisees succeed locally. Many franchisees take part in performance groups and town halls to share their business wins and hold each other accountable to business goals. As a franchisee, you’re in business for yourself, but never by yourself.
Successful Franchises Offer an Innovative, Unique Business Concept
With over 300 franchise business opportunities in the United States alone, there is bound to be some overlap in franchise concepts. But a prospective franchisee should look for a concept that offers an innovative, unique concept. Bringing something new to your community allows you to corner a market and offer a much-needed product to your clients. Look for a concept that offers proprietary products or services and a unique approach to the business. For example, LearningRx is an educational franchise concept that differs from traditional education and tutoring business models. Unlike tutoring, designed to reteach missed or misunderstood information, LearningRx brain training addresses the root cause of learning struggles to help both children and adults think faster, learn easier, and perform better. This unique concept is unlike any other educational franchise concept in the marketplace and offers franchisees a chance to break into their local market with a much-needed service.
Successful Franchise Concepts have a Clear and Distinct Mission and Vision
Every business owner should have a clearly defined mission and vision in order to make business decisions and priorities. As you seek out the franchise concept that best aligns with your goals and values, pay close attention to the mission and vision of the franchisor. This is the lens through which the franchisor makes key decisions regarding the future of the company, and is a key factor to consider—do your values align with those of the franchisor? Are you interested in helping the franchisor execute their mission and realize their vision? The LearningRx Mission and Vision are key to our daily business operations as well as our short-term and long-term business goals.