There are a number of factors that contribute to the success of a particular franchise system and it’s Franchisor. These may include, among others:
- Carrying out effective due diligence and feasibility studies regarding the intended franchise system you are seeking to establish
- Do you have sufficient capital/funding ?
- Do you have a proven concept ? Can the concept be easily replicated ? Is the concept sufficiently differentiated from competitors ?
- Are your Procedures and Operations Manuals well designed, detailed and able to be followed ?
- Effective ongoing support and mentoring to Franchisees
- A sound training program
- Continual promotion of your brand. Ensuring adequate resources are devoted to marketing and advertising. Properly managing the Marketing Fund and utilising funds to their optimum
- Quality internal management and IT systems
- Maintaining good relationships with your Franchisees
- Establishing standards and ensuring Franchisee compliance
- Encouraging Franchisee success - successful Franchisees help to sell franchises, cost less to support and pay more in royalties
- Implementing rigorous Franchisee recruitment processes. Choosing your Franchisees carefully including in terms of aptitude and temperament for the franchise system
- Undertaking thorough analysis of Franchisee sites and Territory selection
- Ensuring your intellectual property is properly protected
- Ensuring your Franchise Agreement, Disclosure Document and ancillary franchise documents look professional and are correctly prepared
- Understanding your obligations under the Franchising Code of Conduct
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The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.
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