What Successful Franchises Have in Common
Successful franchise systems share common features. Learn
what these features are.
There are common attributes that a successful franchise system
has which are shared among these franchise systems.
- Franchisees are profitable and earn an ROI
commensurate with their investment,
- The franchisor has strict guidelines and
franchisee profile for selecting qualified franchise
candidates and there are few, if any, departures
from these guidelines.
- The franchisor does an Item 19 Financial
- Franchisees have a forum for communicating their
concerns to franchisor leadership. This doesnít
require a formal organizational structure, but
franchisees have unfettered access to franchisor
staff that will listen to and respond to problems.
- Franchisee training is state of the art and
on-going. Franchisee training doesnít end after a
new franchisee joins the system, but rather is a
- The franchisor will entertain, address and
correct problems with the franchise program, when
required. Rather than turning a deaf ear to system
problems, the successful franchisor will listen and
be responsive to areas that require change.
- There is a dispute resolution process in place,
that has the objective of resolving
franchisor-franchisee disputes that could lead to
- The franchisor enforces franchise system
standards consistently. Franchisors that uphold
system standards are sending a message to their
franchisees that the brand and the consistency of
the franchise operation are important.
- Franchisor gathers, compiles and report
franchisee financial performance highlights to the
network. Itís important to have an understanding of
the financial results of its franchisees and share
these key statistics among franchisees.
- The franchisor is willing to assist franchisees
that may encounter a sudden problem or challenge.
This may include deferring royalty fees and
spreading out payments over a period of time.
Franchisors that demonstrate successful performance share certain
traits, which are presented above. Franchisors should use these
items as a system checklist to determine how their franchise
compares to successful systems.
© 2015 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow.com and Chief Operating
Officer, FranchiseGrade.com. He is a former
franchise executive and franchisee. He can be contacted at 631-246-5782 or