Franchise opportunities are rich and rewarding. That said, the more care you take in choosing your franchisor, the more you benefit.
These decisions are not necessarily straightforward. There are a few crucial considerations to mull over first. After all, these arrangements essentially come down to aligning your business with somebody else’s and adopting their mindset and processes. It’s a big task that takes time to deliver for it to be done properly.
So, what are these important factors you should be thinking about before choosing a franchisor? Read on for our take!
The Level of Support
Some franchisors treat their franchisees as an extension of their business, which is right and proper. Others view their franchisees as little more than a footnote to their wider operation, more interested in buying out the competition than turning it into anything exciting.
Being able to identify this distinction is crucial when choosing a franchisor. You can find a franchise here with Franchise Local, and be certain of what every entry in their directory is setting out to achieve before considering whether to align with them. A franchise for sale here may give you assurances about providing training, supplies, financial services, resource allocation, and more.
It’s also a good idea to independently verify what’s been said too. In addition to presenting franchise opportunities, Franchise Local also publishes testimonials of those who have worked with these entities. If these people reaffirm what the franchisors say, you can feel more trusting of them.
Business testimonials might be one thing, but customers may have a different impression of how things are going. Big corporations seldom manage to maintain a squeaky-clean image, but even still, you mustn’t adopt the brand of franchises that people truly detest.
Even big chains like McDonald’s can be bombarded with negative reviews on third-party platforms, sweeping dozens of branches simultaneously. The reasons for this included things like wrong orders, long wait times, rude staff and cold food. It’d be one thing for one branch to have this problem, but it’s another entirely for so many to be (seemingly justifiably) tarred with the same brush.
Bigger doesn’t always mean better, and well-known doesn’t always mean well-liked. Keep that in mind when choosing a franchisor.
Your Established Territory
You and your fellow franchisees might be operating under one brand, but they’re still your competitors in some respects. Competing with your associates can present problems, too.
That said, it’s not necessarily a business killer. If they weren’t your associates, they’d still likely be competitors. Customers might switch between one branch or another depending on which is closer rather than giving their loyalty to just one branch. It’s not ideal for your business, but it can still work.
Moreover, these situations are more common than you might think. For example, Colne recently opened its second Greggs bakery, creating 12 local jobs in the process. How impactful these situations can be depends on your sector, consumer confidence, and general business aptitude.
Still, while you are unlikely to find franchise opportunities that solely represent the brand in your area, that doesn’t mean you shouldn’t try to. Look for a franchisor that offers that – some do. If they don’t, try not to hold it against them too much.