franchised. If you check out any franchise
portal you will see literally hundreds of
franchise offerings.
Not only has franchising grown in terms of
industry diversity, but the franchise model
has also grown as new industries enter the
franchise arena.
Typically, franchising was always related
to a storefront operation in a high traffic
location and ‘location, location, location’ was
always the key phrase for success. In today’s
franchise environment the storefront is quite
often a secondary situation and home-based,
and even cloud-based franchises are becoming
extremely prominent. ‘Location, location,
location’ has now in many instances been
replaced by ‘support, support, support’ as the
keywords for franchise success.
Many first-time franchisees are individuals
transitioning from the corporate world into
self-employment and entrepreneurship. The
lure of a home-based office, after possibly
many years of commuting, has an enormous
appeal and franchising has adapted to
accommodate that situation. Technology
has also played a significant part in boosting
the home-based model. Numerous franchise
opportunities can now be run quite
successfully with a computer and a telephone,
and the need for more expensive equipment
and premises, and sometimes staff have been
eliminated.
Notwithstanding all of these changes which,
in the main, have worked for the benefit of the
franchise industry, the basic underlying model
has not changed over the years. A franchise
is still only a system. However, it is a system
that has certain noticeable characteristics.
Those characteristics include the fact that
the system of the underlying business can be
written down and replicated in numerous
different environments. Invariably a franchise
also represents an in-demand product or
service, albeit sometimes in the short term,
and the franchising aspect accommodates a
rapid distribution opportunity.
Regardless of whether a franchise is home-
based, a storefront, a manufacturing
operation, etc. the underlying element is
still a very specific system. If all franchises
are reduced to the common denominator of
only being a system, what sets one franchise
above another? In virtually all franchise
sectors there are a large number of franchise
opportunities to choose from. In the fast
food sector for example, hundreds or even
thousands of opportunities still exist, and the
diversity and variety also continues to expand.
A similar situation extends with automotive
services, print shops, sign and graphic stores,
and so on. Quite often one of the elements
that a would-be franchisee should consider
is that of history. A franchise that has
some solid history will naturally have some
extensive track record that as an organisation
it can share with their franchisees, which
in turn should assist a new franchisee in
developing and promoting their business in a
rapid manner.
Therefore, when seeking out a franchise
opportunity, an individual should explore the
background and longevity of the organisation.
A franchise organisation that can demonstrate
a good base of franchisees and many years
of operation will certainly be able to bring a
mature model to the marketplace. Because a
franchisee is acquiring a system, they expect
that system to be as mature and well-tuned as
possible. It is only history that can develop
that fine-tuning.
Regardless of the franchise model that an
individual may explore, a solid due diligenceapproach is always of paramount importance.
A franchise is not something that can be
purchased ‘off of the shelf ’, but is usually
considered an award to an individual who,
in turn, also brings suitable history and
experience to the franchise organisation.
Franchisors look at potential franchisees and
expect them to have a suitable and appropriate
background for the franchise in question.
What is a franchise – it is a system that has
been tried and tested and proven. Would-be
franchisees should therefore always look for
the well-tried and tested aspect in any model
that they are considering. When it comes to a
mature business model, a franchise with solid
positive history should always stand out from
the crowd.
Age and experience are without doubt key
elements for any successful franchise.David Banfield is the President of The
Interface Financial Group, a position that
he has held for over 20 years. He has been
instrumental in starting Interface as a
franchise opportunity and building it to
its current international status. Prior to
his involvement with Interface, he worked
extensively in the banking, credit and
factoring financial service areas.
http://www.interfacefinancial.com.au“Numerous franchise opportunities can now be run quite
successfully with a computer and a telephone, and the need for
more expensive equipment and premises, and sometimes staff
have been eliminated.”