5 Major Characteristics of a Franchise

Renouncing is not an option after you sign a franchise agreement. If you conduct a thorough inquiry in the beginning, you won’t regret it afterwards.

Your money cannot be wasted in any way, thus it is crucial to find the ideal one before logging in.

1. Solid Concept

When choosing a franchise, the first question is –

“What do they do?.”

What is the concept. This can be anything from the following examples:

• Filipino Food
• Travel
• Technology
• Retail

And list goes on. Once you know what the company does, your next question is:

“Who does it serve?”

Your answers above might change to the following:

• Business center employees
• Foreign travelers
• Millenials
• Buyers or users

A franchise may have a special hook or aspect that sets it apart from the competition in addition to its market classification.

Each franchise has distinguishing qualities that contribute to its distinctiveness.

As consumers, we are all aware of these concepts.

But as possible angel investors, we’re examining a concept’s unique selling point in greater detail. We’re interested in how it’s put into practice and how it gives the client a positive experience.

2. The Right Business Model

How does the franchisor deliver its goods so that each new location can duplicate success? What Franchise Business Model used?

A franchise business owner should know how to:

• Hire
• Train
• Procure
• Market
• Sell
• Use technology

At first glance, you won’t know the details of a franchisor’s systems. The processes underlie a franchise’s success. The franchisor has measures in place to guarantee each franchisee’s quality and consistency.

3. Excellent Franchise Training Program

Franchisors have spent vast resources understanding their business. And they transfer this knowledge to you as a franchisee. Proper training is critical to a successful business.

3. Brand Equity and Brand Image

Customers in well-established franchisees already know and trust the brand, and they are prepared to spend more for goods and services.

Are you convinced of the brand as a potential investor? The franchisor thus anticipates that you as a potential franchisee would safeguard the brand.

4. Open Communication With Franchisees

Communication is vital between the franchisor and the franchisee. Check out the advantages in gaining good communication:

• The better the internal communication in a system, the better the opportunity. It builds a lasting relationship with the business.
• Most franchise agreements last for 10 years or more. You have the urge to renew the franchise agreement if good communication is between you and the franchisor.
• Sometimes franchise relationships get complicated, and it is normal. Fixing the issue will retain the good company and avoid further conflicts.

Remember, it is important that you feel at ease with the franchisor to build a lasting relationship.

To do that, cultivate effective and clear communication at the beginning of your franchise career.

Lastly, look for systems that have a goal-oriented culture. The opportunity should also contain knowledgeable, approachable corporate staff and happy franchisees.

5. Corporate Responsibility

The company has the heart towards their consumers and their employees.

Usually, they observe such follows: 

• Practice the 3 R’s (Recycle, Reuse, Reduce)
• Support local community projects
• Raise money for the marginalized sector
• Provides sustainable personal development and growth for their employees