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The 5 Secrets of a Great Franchise System

by Marietta Snetsinger

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Exactly what makes a great franchise system? And by great, we mean, what is it that will ensure a franchise system maintains relevancy and endures and even prospers, especially during challenging economic times?

Here are five secrets that we think can go a long way to creating a great franchise system. When looking at a system, be sure that:

1 The franchisor is a subject matter expert (SME)

Being an expert in their industry is critical for a franchisor. The franchisee doesn’t want to do the industry research, and that is probably why they invested in a franchise in the first place. The franchisor needs to understand their industry and be aware of the most recent developments. This includes anticipating future trends or changes in the industry or even foreseeing the products or services that their customers may want. Being able to adopt change and maintain relevance is a critical part of being a franchisor. Think of Blockbuster. The company failed to innovate and adapt its business model to the current trends, which ultimately resulted in their demise. It is critical for the franchisor to be at the forefront of innovation and be able to adapt their franchise system accordingly.

2 There is a strong local marketing plan

Although the franchisee is the one responsible for implementing the franchise plan in their local market, they may need some guidance and support from the franchisor as they go about it. The franchisor should have already figured out what it takes to implement the business locally and should guide, lead and teach the franchisee how to do that successfully.

3 There is a system to attract, acquire and retain customers

A strong client acquisition process system is imperative for the success of any business, especially a franchise system. This means that the franchisor has figured out how to get customers to consume their products or, in a service business, how to onboard new customers. In summary, they know how to attract, acquire and retain customers and have a documented process to prove that it works. A franchise isn’t a “build it, and they will come” sort of thing. There is a science to it. It starts with the marketing plan, which is what initially gets the attention of the customer. Once they have the customer’s attention, there’s a proven way to attract, acquire and onboard the customer. From there, the franchisee can implement the customer attraction system in their local market.

4 The franchisor knows its unique franchise proposition (UFP)

Understanding what makes their franchise business opportunity unique and different from others is at the core of a UFP. A strong franchisor can articulate what it is that they do differently and better than other franchise systems. It is often a part of how they conduct business and may include a competitive edge around a problematic aspect of their business. For example, a home care concept may have a “secret sauce” around hiring talent. They can easily demonstrate why they are a better option for a franchise investment.

There are no secrets to success. It is the result of preparation, hard work, and learning from failure. — Colin Powell “

5 There are proven performance management and compliance systems in place

A strong franchise system is focused on increasing the profitability and performance of their franchisees and has created a way of tracking and measuring the franchisee’s performance. Think performance and profit improvement vs. policing mentality. A great franchisor focuses on what we all can do to create and attract more business. The franchisor also has a duty to ALL franchisees to manage the brand reputation. Compliance ensures a consistent customer experience and increases the likelihood of a customer continuing to do business with a brand.

Ultimately, building a great franchise system takes commitment, effort and attention to detail. Managing the expectations of the franchise relationship is pivotal to strong and sustainable success.

With more than 20 years of experience in the international franchise industry, Marietta Snetsinger is passionate about establishing solid operational systems and leadership within franchise organizations. She played an important role in developing operational support tools and recruitment strategy with brands including M&M Meat Shops and Baskin-Robbins. She is a well-respected franchise expert and speaks at franchise shows across the country. As the founder of Ascend Franchise Solutions, Marietta works closely with small and emerging franchisors, on a daily basis. Reach out to her at marietta@ascendfranchise.com call 519-212-0309 or visit www.ascendfranchise.com.

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