FRANCHISOR |
3 Wrong Mindsets When Preparing To Franchise Your Business
Written by Editor
As with almost everything else, franchising needs to be built on solid foundations, and these foundations come with having the right mindset.
Related: 5 Questions To See If Your Business Is Ready For Franchising
Creating A Franchise Offering By Copying The Market
Scenario
A business owner is looking for growth through franchise expansion and instead of engaging a franchise consultant for development work, chooses to create on their own a franchise model and payment arrangements. Unknowingly, or knowingly, the business owner is dumping unrealistic expectations onto franchisees.
The Right Mindset
Even within the same industry, every business is different with distinctive needs and wants. The franchise model should be customized to the business, and associated payments should reflect its actual financial performance. If copying is adopted, how do you know if the initial and on-going payments you charge will allow franchisees to stay afloat?
Related: Franchising Your Business Without A Franchise Consultant
Deciding That Having An Operations Manual Is Redundant
Scenario
The business owner believes the operations are made up of simple processes and there is no need for an operations manual. Instead, transfer of knowledge to franchisees will be performed through verbal teaching. When franchisees don’t operate in the expected standard, the business owner puts the blame on franchisees and thinks they are going rogue.
The Right Mindset
Franchising is more than just ensuring the operations are effectively replicated. From the setup phase to customer experience, the franchise unit must be able to display the same characteristics of the original business. In fact, it is like setting up a whole new business so don’t assume franchisees, especially novice ones, to be able to digest everything with you just saying it verbally. Besides, in the event of a dispute or where your franchisee does go rogue, the operations manual could serve as fallback to the required standards. Furthermore, franchisees pay royalties in return for your operational expertise and knowledge so if you are offering none, what is it exactly are franchisees getting back in return other than being able to fly your brand’s flag?
Related: What Should Be Included In Your Franchise Operations Manual?
Confusing Franchise Enquiries With Franchise Sales
Scenario
A business owner who starts to introduce franchising opportunities could experience an influx of enquiries at the early stages. With so much interest, the business owner may begin to have big hopes and dreams of becoming the next franchise phenomenon. When no one actually signs up as a franchisee, the business owner gets frustrated and wonders what went wrong.
The Right Mindset
Don’t get carried away when there is an influx of enquiries about the franchise opportunity you are offering because most would probably just be curious or fishing for information. In most cases, you will be looking at a conversion rate of 5-10 out of 100 franchise enquiries. Don’t expect people to rush in and throw their retirement fund at you. Be patient – Rome wasn’t built in a day.
You Might Also Like
FRANCHISOR | 7 December 2022
How Relevant Is Your Franchise Operations Manual?
In its essence, the franchise operations manual is like a dummy’s guide for whoever is using it to set up and run the business which it was developed for.
FRANCHISOR | 29 November 2022
5 Mistakes You Might Have Made When Delivering Your Franchise Pitch
As first impressions go, this first meeting between a franchisor and prospective franchisee could make or break a potential franchise arrangement.
FRANCHISOR | 24 November 2022
4 Local Marketing Mistakes For A Franchised Outlet
Both franchisor and franchisee would definitely acknowledge the importance of marketing.
Latest on TFA
SPOTLIGHT | 3 April 2024
Dive into Delightful Dining: Big Fish Small Fish Brings Variety and Flavor to Your Plate
In the bustling landscape of culinary delights, few dishes hold the timeless charm and universal appeal as fish and chips. A quintessential comfort food, it has been a staple for generations, satisfyi
EXPLORE | 6 March 2024
Unveiling the Local Gems: Indonesia's Franchise Success Stories
In the vibrant and diverse landscape of Indonesia's business scene, some local franchise brands have managed to make a lasting impression, often being mistaken for international giants. Let's take a c
TRENDS | 6 March 2024
The Buzz on Grab & Go Coffee Shops: Emerging Brands Brewing Success in Indonesia
Indonesia, a nation known for its rich coffee culture, is witnessing a new trend that's changing the way people enjoy their daily cup of joe – Grab & Go Coffee Shops. This on-the-go coffee experience