FRANCHISEE MUST HAVE What makes a successful franchisee? Regardless of industry or offering, the traits that define success in business are universal.
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itness or fast food, coffee or cars, franchising is a unique and all-encompassing sector, but many of the steps that will help you climb the mountain are not industry specific. It all comes down to you. How much are you willing to put into your business, and how dedicated are you to making it work? In every venture, you will face adversity. From trying customers to swelling competition, the list of challenges you are likely to encounter is almost as diverse and different as the sector itself. So, what is the key to getting it right? • As a franchisee, you must play by the rules; after all, you are paying to be a part of an established system to do so. Don’t expect success to come thick and fast just because you pick a winning franchise. • It is critical that you understand your rights and responsibilities. Your franchisor will provide a wealth of resources and information relating to the operation, but the onus is on you to get it right. We sat down with Tim West, founder and CEO of fast-growing boxing and strength training franchise 12RND Fitness, as he revealed his five golden rules to becoming a successful franchisee.
Five golden rules 1. EXECUTION
The ability to execute a plan is one of the most important traits any franchisee can embody. Every member of the network is tasked with maintaining a supreme level of service or offering, and it is pivotal that you can deliver on this promise. One poor performing outlet can bring the value of the entire brand down. You don’t want to be the one operator dragging the chain. “As a franchisee, you are buying into a franchise system because you want to benefit from the collective learning of the group and scale of the network,” Tim says. “The system, brand and strategies have been developed and refined over time to be repeatable and scalable.” There is a constant temptation to adjust certain parameters in the model. For example, you might find a supplier with a lower cost, or have a friend who could do your fitout cheaper – but bargain hunter beware. Franchisors have established ties with certain suppliers, builders and service providers for a reason, because they do good work that is consistent in look, taste and quality with the rest of the network. West believes that while an entrepreneurial spirit can see you constantly striving for business improvement, some things are better left untouched. “Often, franchisees can be tempted to make changes to the framework and implementation of strategy, but some of the most successful franchisees are the ones that follow the game plan and stick to the recommended best practice.”
2. A COLLABORATIVE ATTITUDE
Becoming an entrepreneur may seem like a solo endeavour, but in the franchise world it’s a different story. Franchising is a wholly collaborative venture; that’s why you often hear franchisees referred to as partners. Your ability to work side by side with your franchisor will dictate how seamless the operation runs. Every franchisor will welcome feedback and advice, but compromise is an inevitable aspect of business. Remember, you aren’t competing with your franchisor or other franchisees in the network. Your success is their success. “The best franchisees understand that if the group is doing well, they will do well. Rather than competing against fellow franchisees, it’s more productive and mutually beneficial to actively collaborate within their network and especially with the franchisor,” Tim says. “Ongoing communication both ways is vital to encourage collective growth and success.”
FEB/APR 2020 | 133 | WWW.FRANCHISEBUSINESS.COM.AU
FRANCHISE BASICS
5EVERY TRAITS
