7 Lessons From a Successful Franchisee
My experience stems from buying and selling franchises. I believe in franchising as a wealth creation tool but be sure you don't become a victim.
If you want to build an international franchise or are simply looking at acquiring a franchise to increase your wealth - always look if you can tick the following check boxes.
My 7 learnings as a successful franchisee (and in order of merit):
1. Buy the top franchise model in the industry i.e. if Pizza franchise - buy top franchise in the country (the criteria being, 3 -5 years of being number one)
2. If passionate founders are present - big YES
3. Strict code of conduct and high operational standards - is there consistency in customer experience throughout the group?
4. Are franchisees considered as customers?; Or is the franchisor looking at a franchisee as a glorified employee - don't be shy - ask the franchisees.
5. Are more than the 20% making money (real good money) - otherwise it's an average franchise - Be very sure you have the capability of being a superstar! Happy customers and profitable franchisees -these are signs indicating the franchisor has his finger on the pulse! Unhappy franchisees and clients is a definite red signal.
6. Buy in before the big growth is realized - i.e. see the potential for the group and buy in before everyone wants in. No different from the stock market...
7. Is the franchisor operationally focused or customer-centric? If operationally focused - GET OUT!
Build or buy a franchise with the above in mind and rest assured -you will have a winner!
Themi Stergianos is an ActionCOACH Business Coach. ActionCOACH is the world's leading business coaching franchise with over 1000 business coaches worldwide. This article was originally published here on July 2009.