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.
- Build a user-friendly model that can be used by individuals of any skillset;
- Build a defect-free model;
- Build a model with Operations Manuals;
- Build a model that will provide guaranteed, consistent results;
- 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.