by Rudolf A. Kotek
A great industry assures your success
Some Franchisors point out how large an industry segment they address. While it’s generally important that you are addressing a growing market, this alone will not make succeed. The Franchisor’s training, marketing plan, site selection, how you implement their plans and many others factors will be more important to your success than just the size and growth trend of the industry served.
I open my franchise for less
Don’t mislead your Franchisor. If you are overly optimistic and undercapitalized you may be doomed to failure—through no fault of your Franchisor.
Bigger is Better
The more franchises exist in a chain, the more successful they all must be. Great marketing aggressive salesmen and an attractive industry can cause a franchise system to grow even though there are better Franchisors in the same industry. Call many Franchisees and ask them how much TLC they receive. Then check in other systems to evaluate the satisfaction level of their Franchisees. Sometimes, in their eagerness to grow, a system will “overpopulate” an area with many units causing each to steal business from others.
Never be the First Franchise in a System
Who could get more care and attention than the first Franchisee to join? If the Franchisor has good experience in its industry and you are confident that they will be able to help you replicate their success, being the first should be excellent.
I’ll use about 80% of the Franchisor’s business plan, but I’ll modify it enough to fit my style of management and my town.
If you buy a franchise, use their system. If you insist on doing it your way, you may violate your agreement and be terminated. Believe me, stick to the whole plan—or don’t buy a franchise.
All franchise systems are about the same. Therefore, the biggest with the lowest price should be my choice.
Each system has a culture of its own. Meet with the Franchisor and meet or talk to several Franchisees to see how you’ll fit in. Some Franchisors now offer lower royalties, minimal renewal fees and other features to show their commitment to your success.
When you buy a franchise, your success is assured.
Any new business venture involves risk. You must be ready to work long hard hours to implement the Franchisor’s business plan in order to succeed. The advantage is—you have a plan. The unknown is—how well you’ll implement it.
Rudolf Kotik is the founder of RK Franchise Consultancy Inc, which developed more than 350 Filipino Companies into Franchise System. Email: rk@rkfranchise.com; Websites: www.rkfranchise.com, www.franchise.ph
