6 Keys to Keep Your Franchise System Growing
To stand out among the more than 3,000 active franchise opportunities in today's market, you must seize your buyers' attention with benefit-driven programs and systems. Stay tuned to the cycles of the economy, your industry, new competitive influences, and buyer interests. Savvy franchisors do what it takes to 1) maintain compelling franchise programs, 2) remain sensitive to their buying audience, 3) understand what those buyers want, and 4) know how to package their opportunity to successfully recruit them.
Here are 6 key tips on how to keep your successful franchise system moving ahead in today's marketplace.
- Evolve your franchise program to ensure that it is attractive to today's buyer. Listen to your franchisees and monitor the pulse of the marketplace. Businesses that remain the same eventually get left behind.
- Recognize that unexpected crises can occur during the life of your franchise system, and be aware that how you respond and adapt to these events will determine the level of success and longevity of your system.
- Challenge yourself. Consider alternative growth models. Is traditional single-unit development the best way for you to grow, or is there a place for expansion through conversions, master franchises, area development, or multi-unit programs for experienced franchisees? What about international development? Global markets may represent exciting growth opportunities for your brand; or, on the other hand, could present too many challenges to consider.
- Rules were made to be broken. Are royalty fees necessary for your revenue stream? Should you charge successful, high income-producing owners additional franchise fees to open more units? What if new franchisees designed their own territories based on your guidelines and approval? How about co-branding or Express versions of your concept? However "out there" these thoughts may seem, they have worked with certain concepts. Keep the doors open and think beyond the walls of tradition.
- FPRs (formerly called earnings claims) provide a competitive edge, helping buyers evaluate franchise opportunities that could satisfy their financial goals. The Amended FTC Rule further encourages franchisors to share performance results in Item 19 of the FDD. If you're still holding back, don't ignore this option too long, or you'll lose ground to the growing number of companies jumping on the earnings claims bandwagon.
This excerpt is from my Amazon.com best-selling book, "Grow to Greatness: How to build a world-class franchise system faster." To order copies, click here.
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