Success in a franchise that you invested on is not an instant promise. It will be uncertain unless you are knowledgeable about the part and parcels of doing the trade and business together with the strengths that you have to develop. Luckily, we have willing franchising experts to lay down their cards on how to be triumphant amidst the unpredictable and wavering economic conditions.

Money Still Garners the Top Spot

Money is still the bottom line to generate money in return. The funds are the life stream of a franchise. Lacking it will cause a franchise to failure. The founder and president of the Franchise Recruiter Ltd. based on Chicago, Jerry Wilkerson, cited that every franchisee should have a strong backbone of financial resources since there are expected highs and lows in doing the business. If otherwise, then insufficiency of funds will arrest its operations. Furthermore, the thrusts of the current economic condition will certainly abort the franchisee’s system.

Jerry Wilkerson also added that if a franchisee has the adequate means, it will emerge to a more powerful and compelling market after the economic recession’s blows. Franchisees may be stricken with the repercussions of the recession but after its recovery, a new world for a brighter chance to prosper will open for them. It boils down to one important factor. Money will always be a determinant whether or not a franchisee will persist to exist.

A strongly founded consumer base also plays a major key. A franchisee without consumers will mean no continual marketing operations and income generation. If the franchisee does not have any marketing budget for advertisements and media campaigns, there is no way that consumers will be made aware of the business. A business without a sign, or advertisement for that matter, is a sign with no business. So what franchisees with limited marketing budget do is that they devise other cheaper alternatives to publicize their products and services. Mark Kaplan of the Great Wraps Inc. stated that franchisees must aim exactly who their target audiences are and where they can find them. Their marketing efforts should be geared towards them through the use of efficient marketing budget.  Publicity is therefore an essential.

Karen and Bill Peterson of the Jupiter, Florida, American Leak Detection franchise have exerted effort to adopt cost-saving marketing methods. Being more aggressive with their marketing strategies other than the traditional methods on trades, they also try to leverage more on business relations and customer service betterment with the hopes of gaining more business referral opportunities targeted toward them.

For Keith Whipple of the Wing Zone franchises situated in Charlotte, North Carolina, taking more thoughts about the options in advertising and marketing schemes is really necessary because using them are costly. Carefully examining the choices of advertising media one can select from is what every franchisee should include in their urgent tasks. Assess what advertising media is effective and money worthy and can return the value you deserve so you and your business will not be welcomed with a devastating state.

An Indispensable Support

The president of the Glass Doctor franchise, Robert Tunmire, advocates that for a franchisee to overcome its troubles, it should be able to strictly adhere on the operating system handed down by the franchisor. Failure to perform every protocol or rule can mean failure in operations. Business is sophisticated nowadays. So for a franchisee, it must perform its obligation to follow the system. There should be no rooms for error. A franchisee must grab and use the advantage of the operating system since it is already proven and tested.

Likewise, Kaplan supports the statement. He stated that the franchise principles should be magnified and enhanced especially under depreciated economic circumstances. According to him, the franchisors have been emphasizing to their franchisees that in order for them to succeed, they should diligently understand and excel in the performance roles indicated in the franchise agreement in dealing with what consumers need and want. The agreement is more than just terms written on papers to be adhered to. It is a requisite for success.

A part affects the whole system of body. Whipple stated that when someone has purchased a franchise, he or she should conform to what the franchise really does. It should not at all create a path of its own and deviate from what is considered normal for the franchise. If a business entity wants to be autonomous, first of all he or she should not have availed for a franchise. In this kind of world, consistency even in the smallest details has the heaviest bearing.

Fully grasping and getting the picture of what you desire the most out from the franchise is equally important as meeting with the franchisor’s anticipations from you. Tunmire stated that having concrete and tangible personal objectives add to the success rate of a franchisee. One must not lose sight of what he or she is destined to be in the future. For him, a business is only a mechanism of acquiring the kind of life you clamor for, and the start must always occur first in fully understanding on what is within you.

Personal traits and characteristics also affect success. Kaplan advised that before joining a franchise, a person must undergo self-awareness and self-reflection. The individual must have a firm standing about what he really wants and his willingness to abide with the determined operating system in franchising. If a person does not have the passion for that and wants to reinvent and create a kind of business that is really pertinent for the own self, attempting to be in franchising should be out of his options. It will only contribute disadvantages to the whole system.

Karen Peterson reinforced that one should be able to take full advantage of the benefit. This system can be considered as a family. Everyone must look out on each other and everyone is accountable to every member. Support is an indispensable factor in a franchising system. That is already a part of the business and that is what franchisees are paying for.

Bill Peterson adds that embracing such system has more favored positions. After all, the crucial information from a franchisor, whether about marketing or employee contentions, is made accessible and available for the franchisees.

Success does not come in one or two strategies. Success comprises of a whole network where people, ideas and principles agreeably work together. It is something to be worked for. And it can be strengthened more through the collaborative effort of the people sharing common ideals and goals.

Here is the scenario. Investing with a franchise is what you have been thinking for quite a time now; however, there is just one thing that you do not want to compromise with. You affirmatively do not want to be tormented with employees. Existing franchisees confirmed this. Earning good and trusted employees is like one in a million. They are hard to find and yet it is more challenging and resource-exhausting to retain them. This issue has been an argument for the past 15 years for most franchisees.

Consider the aforementioned scenario to be more of a challenge with a readily available solution. If you do not want to deal with employees, then you can purchase a franchise that does not necessitate any of them. On the other side, this scheme may not be capable of embodying your dream business, the business that can reflect your joy and passion. It only embodies basic and typical sales roles. Another downside of it is that it can obligate you to possess specialized skills where only you can fulfill and perform satisfactorily.

I might say that it is not feasible and rational, for practicality’s sake. There are unveiled truths in order to keep you from being tormented by your employees.

• Initially, decide what franchise companies you will be concentrating on to confine the number. This will lead you to companies that will most likely decrease employee hassles. Distinguish the kind of products and services they render, the number of employees it will need to progress effectively and efficiently and the degree of difficulty to recruit and hire them. Consider the accessibility of the local companies for you to inquire about the current number of employees. Furthermore, take into account the overall appearance of the business environment that can maintain your employees to continuously work there than other comparable business environment.
• Next is to contemplate on the type of business where the average employees can celebrate on better compensations and benefits. The business should also foster a working environment where the employee skills learned are exclusively for the chosen, and not for the masses. A combination of both factors will give you higher luck on better employee recruitment and retention. Moreover, the cost of recruitment and retention will be lesser as you keep happy and experienced employees in the long run. Most of all, you will gain their loyalty.

• Lastly, you have the freedom to ask queries from current franchisees about the issue on employee hassles. Take the advantage while you are still performing your investigation. You may question about the number of employees and the ways they maintain them and the compensations associated. You may also ask how they resolve employee dilemmas and if the going gets tough, the estimated finances it require them to recruit new employees. The way they supply you the answers can help you discern whether this type of business can control the problems.

In the event that you emerge as a new franchisee, keep in mind that the related experiences will be on a mainstream first. If existing franchisees are experiencing employee dilemma and if you selected the same franchise, then it will be more probable that you will share the same commonalities as them. If otherwise, then you can hope that neither you will encounter such.

A spark of hope will hit you when you know that a few years back, franchisees do not treat such issues as extensive and burdensome. Yet being ignorant about it the can lead you more harm than desirable, so do some thorough research and discussion about this issue before you venture on a type of business franchise.

Expanding a successful business can be done in many ways. The most common perhaps, is going into franchising. Franchising, in dictionary definition is a form of business in which a company with successful products or services enter a relationship with an individual or another company to operate under the trade name of the said company (franchisor) for a fee. In this case, you have the successful business, you are the franchisor and what you need is the proper guidance to franchise your business.

It is important to seek information about the franchising world before getting into one.  The Franchise Council of Australia is a great resource.

You need to understand that although you are already an established trade name, getting into franchising is like being new in the business world. It will require patience and finances. There are requirements that need to be met that are vital for the credentials of your franchise business. Here are some of those requirements:

Legalities

In the legal department, like any other business, you need to get a good franchise lawyer to meet legal necessities such as requirement documents. First, you will need to prepare a document known as Uniform Franchising Offering Circular (UFOC); this is basically a disclosure document on the operation of your franchise business. The UFOC is an important document as it is required by the Federal Trade Commission for all companies that want their businesses to be franchise anywhere in the United States. Furthermore, there will be some states that would require you additional documents for you to be able to offer a franchise business in those states.

Accounts

Under one of the disclosure requirements mentioned above is an audited financial statement for the franchise company. This means that you will not be able to complete legal without preparing you’re audited statements. You will have to seek the help of an experience franchise accountant to audit your statements. These financial statements will need your final decisions on what the structure of the enterprise should be and on whether the franchise company will be on a different name or under the name of the already established company you have. You will have to seek advice from your accountant about this.

Systems

The system of your franchise company plays a vital role in making the company a success. Note that all your franchisee should offer the same experience as everyone else inside your franchise business. In order for the franchisees to do this, as franchisor, you need to develop four things for the franchisee. First, you need to develop the system itself that all franchisee will be able to use to ensure the success of their business. Second, you should be able to develop a great training program needed to educate franchisees. Third, make a great marketing plan that would enable the franchisee to learn the art of customer pleasing. Fourth and last, you need to devise a sales system that is easy to understand so it would be easy for you to recruit new franchisees.  This part of the franchising business is a lot of work but it is also the most important and it should be given the attention it needs. You can’t do this all by yourself so you will have to ask assistance from franchise consultants that have a great track record.

Attitude

In everything that you do, you need to have the right attitude; the right mindset and the optimism that you need to become successful. Like everything, getting into the franchise business also needs this. A franchise business is different from having your own business. You will be dealing other businessmen in the franchise world, they are not your employees, treat them as if they are your clients, and like any clients, you need to take care of them. You work hard to recruit them and you will work harder to make them stay and to trust your brand name. There will be resistances and you will experience some bumps in the road, but with the right attitude, you will be able to get through with it. Take advantage in franchising seminars and industry meetings where you will be able to meet other franchisors, this way you will learn from them the ropes in the business. Deal with people with the right attitude and you’re on your way to success.

These four elements are the things that you need in order to produce a successful franchise business. Know that creating a franchise business would need extreme work, patience and finances. It is true that starting a franchise business is expensive. Never settle for mediocrity, and that’s why you will have to hire the best consultants, the best lawyer and the best accountants. Yes, it will be expensive and you’re probably going to work harder like you’ve never work in your life.

All these sacrifices will pay off. Keep in mind the satisfaction and reward you will be reaping after building your very own empire. It will be incredible and it will be the ride of your life, but like any ride, you will have to pay the price. Prepare for this journey and make sure you are ready for this ride.

A franchise is a legal and commercial agreement between two parties in which allows one party, called the franchisee, to market the product or services of the other party, the franchisor, using the franchisor’s trademark and operating methods.

Becoming a franchisor can be a smart and cost effective way to expand your business. Investment is only done for the initial unit and franchisees will pay to use your business concept. They will manage and finance their businesses but will give you royalties based on their turnovers. As a result, there’s less liability and involvement on your part for running several operations of your own.

Here are some things you need to consider to get you started:

1. Assess. Check if your business is franchise-friendly. Are you profiting enough to expand? Is your product or service marketable on a long term basis? Are the margins enough to make it profitable for both you and the franchisee? Can your business be replicated easily on other locations in terms of resources and potential customers?

2. Research. Create a market research report to know what the effective strategies in attaining profitability. You can start by going around to competitors posing as a customer to get a general idea of their operational methods that you can adopt.

3. Innovate. After having the data from your market research, develop a unique business concept that sets you apart from other competitors. Although you may offer a similar product or service, having a unique concept will set you apart from them.

4. Study cost. You need to study the cost for funding the franchise. You will also need enough capital to help the franchisee invest in the property since you are responsible in helping them start their franchise. It is in your best interest to ensure that the franchisee is successful since you will receive royalties based on their turnovers. Getting a business loan or grants from the government or entrepreneurs who support your industry can be the best option.

5. Develop a clear business plan. Have a prospectus that’s directed to the franchisees. It should provide a detailed description of your product and service, what sets you apart from other competitors, target locations, initial franchise fees, support set-up, and estimation of potential revenues.

6. Work out the legalities. It is important to fill out a standard disclosure agreement as required by the Federal Trade Commission and have it registered if needed with the state. You might need to consult a lawyer that specializes on this.

7. Send audit reports. Get an accountant to provide audit reports so that franchisees will gain more knowledge on your company’s worth.

8. Make an operations manual. It is important to have a comprehensive operations manual for the franchisee’s reference. It will guide them how to run the business, how to set-up and manage a new outlet, and will detail any marketing initiatives and training that you will finance.

9. Look for the right people. It is imperative to find people with good business experience to uphold your business reputation. You can conduct interviews and ask for references to gauge potential franchisees. If your franchisees fail to provide good service or product, your brand will surely suffer.

10. Advertise. Market that opportunity for franchising your business. Fund campaigns directed to this cause either by print mail or attending on tradeshows and other public relations events.

“No man is an island” as the famous cliché goes. You might have the same thought especially if your business is on the brink of falling into the danger zone. Right now, you might have something in your head that pushes you to think of a source that could help save your business.

“You are not alone”, I often give this statement of truth whenever business owners who bought from franchises would inquire for my professional advice. This is the main justification. Whether a franchisor is a giant like 7 Eleven or a new baby and starter such as Donut King, they equally play a role as urgent proponents whenever a location of their own starts to wane from what is desirable. Apart from analysis, this is what venturing business owners hold onto rather than building and starting on their own business.

From the given facts above, you might be considering to become a franchisee. But before you head start on the said livelihood, it is advisable to cross examine some current franchisees about how their mother company provides and supports their needs and requests despite this challenging economic status. Having to ask an established franchisor about its obligation to the franchisees can also be a part of your to-do list. If you are already a starting franchisee and in this phase you are experiencing downfalls, do not hesitate at all to propose for support from your franchisor. Remember, you are not alone.

Provided below are some of the citations on how franchisors benefit their franchisees:

Initial Training. A franchisor in the beginning phase has the initiative of providing basic education and advanced sales training as part of their support relations and business dealings. If for instance a franchisee has been experiencing distress on the sales, it is but a way of the franchisor’s support to dispatch its own staff members for the troubled. The staff members assist in gathering more customers and help the franchisee to cope through practical training.

Because of authority, the franchisor can also implement mentoring programs to boost the practical knowledge and skills of the franchisee. Furthermore, a franchisor can also hire business experts from outside sources to impart expertise. As a parent company, a franchisor would want to bring the best out of a franchisee. Setting this kind of practice, both of the parties are mutually benefitting from each other.

Marketing Strategies. Marketing gives a stand out factor for consumer product franchises. It is through the power of marketing that a business can captivate many, many customers especially if the strategy is about adding more value and cutting the expenses for them. Creating changes and updates in their advocacies for advertising, even if it is a major risk, set a franchise company to stand out among others despite of the economic hardships.

Some outstanding franchise companies are capable of giving support supplies in order to uplift the franchisees’ sales. Others also develop marketing campaigns for the franchisees’ advantage in order to leave a mark of great publicity to the general public.

Cost Reduction. In order for a business to continue thriving in economic recessions, one strategy a business can employ is to reduce its overall costs as much as possible. Established franchise companies can help their franchisees by negotiating more reasonable prices of the materials from the suppliers, competitively biding for the materials to be used to dramatically reduce their prices and ensuring that spoilage and wastes are kept at a minimum when handling them. The sum will result to a more effective operation.

Direct Monetary Assistance. In some circumstances, the mentioned supports still are not enough to keep a franchisee out from failing. Because of these circumstances, a franchisor can give a direct monetary assistance until the market conditions will recover. An example of which is the reduction of franchise-fee payments and waiving royalties. A franchisor can also extend the terms when the franchisee will buy needed materials and supplies from its mother company. And sometimes, can help to negotiate better terms for the franchisee’s current business loans or leases.

These supports and help are not mandated by the contract between the franchisor and franchisee. It is actually beyond on what is expected from a franchisor under normal market circumstances. It can be because for the best interest of the entire company. And as the years will come, all the efforts will give more profit for the company.

Here is the scenario. Investing with a franchise is what you have been thinking for quite a time now; however, there is just one thing that you do not want to compromise with. You affirmatively do not want to be tormented with employees. Existing franchisees confirmed this. Earning good and trusted employees is like one in a million. They are hard to find and yet it is more challenging and resource-exhausting to retain them. This issue has been an argument for the past 15 years for most franchisees.

Consider the aforementioned scenario to be more of a challenge with a readily available solution. If you do not want to deal with employees, then you can purchase a franchise that does not necessitate any of them. On the other side, this scheme may not be capable of embodying your dream business, the business that can reflect your joy and passion. It only embodies basic and typical sales roles. Another downside of it is that it can obligate you to possess specialized skills where only you can fulfill and perform satisfactorily.

I might say that it is not feasible and rational, for practicality’s sake. There are unveiled truths in order to keep you from being tormented by your employees.

• Initially, decide what franchise companies you will be concentrating on to confine the number. This will lead you to companies that will most likely decrease employee hassles. Distinguish the kind of products and services they render, the number of employees it will need to progress effectively and efficiently and the degree of difficulty to recruit and hire them. Consider the accessibility of the local companies for you to inquire about the current number of employees. Furthermore, take into account the overall appearance of the business environment that can maintain your employees to continuously work there than other comparable business environment.
• Next is to contemplate on the type of business where the average employees can celebrate on better compensations and benefits. The business should also foster a working environment where the employee skills learned are exclusively for the chosen, and not for the masses. A combination of both factors will give you higher luck on better employee recruitment and retention. Moreover, the cost of recruitment and retention will be lesser as you keep happy and experienced employees in the long run. Most of all, you will gain their loyalty.

• Lastly, you have the freedom to ask queries from current franchisees about the issue on employee hassles. Take the advantage while you are still performing your investigation. You may question about the number of employees and the ways they maintain them and the compensations associated. You may also ask how they resolve employee dilemmas and if the going gets tough, the estimated finances it require them to recruit new employees. The way they supply you the answers can help you discern whether this type of business can control the problems.

In the event that you emerge as a new franchisee, keep in mind that the related experiences will be on a mainstream first. If existing franchisees are experiencing employee dilemma and if you selected the same franchise, then it will be more probable that you will share the same commonalities as them. If otherwise, then you can hope that neither you will encounter such.

A spark of hope will hit you when you know that a few years back, franchisees do not treat such issues as extensive and burdensome. Yet being ignorant about it the can lead you more harm than desirable, so do some thorough research and discussion about this issue before you venture on a type of business franchise.