All that glitters is not necessarily gold and it is essential that you fully research any potential franchise system so that you can see exactly what you are getting in return for your investment.
There are two dominant reasons why people are attracted to franchising - they want to run their own business while eliminating the risks associated with a self start-up, and they want to have access to ongoing guidance and support from an expert who has their interests at heart.
Unfortunately, not every franchisor has these essential building blocks in place so choosing the right franchise can be a difficult process. Although there are a number of elements that make up a successful franchise network, there are three key factors that constitute excellence in franchising and these should become the benchmark for your selection process.
Ethical
Success as a franchisee can only be achieved by joining an ethical network. Franchise networks are symbiotic organisations where both franchisor and franchisee work together to achieve the same goal. Without this mutually dependent equilibrium, the success of one party is achieved at the expense of the other and the network as a whole is doomed to fail.
At Swisher, we have continuously promoted and practiced ethical franchise and business practice. We have always taken a long term view and understand that our franchisees' success will generate our success. Therefore, we carefully select our franchisees (only eight to 10 candidates from over 1,500 applicants are awarded territories each year) and we look after them at every step of their journey to ensure that they will be successful.
A good franchisor will never pressurise you into making a decision. In fact, they will try to put you off and encourage you to further research the opportunity fully. You must also meet with existing franchisees to understand from an unbiased perspective the strengths and weaknesses of the opportunity first hand.
Established Franchise System
The primary advantage of setting up a franchise over a self start-up business is that an established and proven operating system is already in place, eliminating so many of the financial and operating risks associated with running a new business.
Notwithstanding this fact, I am always surprised by the apparent ambivalence that some prospective franchisees show regarding existing operating systems, business structure and a verifiable track record. The franchise media are filled with numerous enticing and exotic business opportunities but all that glitters is not necessarily gold and it is essential that you fully research any potential franchise system so that you can see exactly what you are getting in return for your investment.
A successful franchise network will have a detailed and comprehensive printed operations manual that covers all the operational, staff, premises, sales, marketing and financial elements of your franchise business. As a franchisee, this will be your 'franchise bible' and should provide you with the information you require to run and develop a successful business.
You should also be given ample time to study and (if necessary) take legal advice on the franchise agreement. This is a legally binding document which clearly delineates what you can and cannot do as a franchisee. If the franchise agreement is too lenient, other less scrupulous franchisees may take advantage (to the detriment of the network and the brand), but if it is too onerous, you may not be able to achieve your personal financial and business goals.
Support & Training
Franchising is about being in business for yourself but not by yourself and a solid support and training structure is essential for the long term success of any franchise business. Unfortunately, many franchise networks do not appreciate the importance of franchise support which means that existing franchisees end up supporting incoming franchisees. Naturally, this weakens the network so that it is only ever as good as its weakest link.
At Swisher, our support and training is recognised to be amongst the finest in the UK franchise sector. We offer four weeks of detailed initial training, but far more importantly, we then provide extensive ongoing support and training for our franchisees and their staff through sales, service and business management courses, centrally produced invoices and statements, assistance with debt collection, centralised Call Centre and assistance with the recruitment and training of senior franchise staff. Our franchisees feel secure in the knowledge that there will always be a helping hand to assist them with the growth and development of their franchise business.
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