The biggest area of turn-key
businesses is franchises. There is a franchise for ever industry in the world.
They are fairly easy to acquire and come with a pre-packaged, easy-to-assemble
system. McDonald’s is a prime example of a franchise business, more
specifically a 12-figure, 38,000 franchises example.
There are a few things we are going
to cover:
· Business Format Franchise
· The Franchise Prototype
· Franchise Prototype Standards
Business
Format Franchise
The business format franchise came
from an earlier model call the “trade name” franchise. The major change was in
the rights. During the “trade name” days, the franchise owner only had
marketing rights; now franchise owners have owning rights to the entire
business, including systems. This has allowed for a shift in focus from the
quality and name recognition of the products carrying the business to sales
techniques that carry the business.
The
Franchise Prototype
It was really the franchise
prototypes that allowed for the modifications that help today’s franchises
really stand out with techniques developed by the owners, rather than those of
the corporation. This can make a significant difference in the success of the
franchise, as the owner is able to custom tailor their marketing and promotions
to the direct needs of their local target customers.
Franchise
Prototype Standards
Notwithstanding the above, no one in
their right mind would purchase a franchise if the parent company didn’t have a
solid plan of action in place to ensure success of the business. So there are a
few standards that are put into place that helps to jump start the process of
opening a successful franchise.
Build a model of prospective
customers and/or clients, suppliers, creditors and employees who will
consistently offer high quality work.
1.
Build a user-friendly model that can be used by individuals
of any skillset;
2.
Build a defect-free model;
3.
Build a model with Operations Manuals;
4.
Build a model that will provide guaranteed, consistent results;
5. Build a model that encompasses the same branding in color, dress and facilities codes.
These are all ways the parent
corporation can ensure their brand stays the same and in the front of the minds
of customers. When you are purchasing a widely-known brand, you will attract
customers just for being you.
If you are considering purchasing a
franchise, please reach out to me for assistance.