Franchising

One certain thing about franchising in 2011 will be change. Indeed, successful franchises must change to meet the current market conditions. Business without growth is a stalled venture.

With franchising, change is needed for growth. Franchising is based on methodologies and processes. Businesses need to move forward into the future.

A thriving franchise grows throughout its years of operation. Different delivery methods come on scene and new technology makes an appearance. In addition, the consumer changes over time.

Customer preferences and demands do not stay the same. For example, restaurateurs in the 70s might not have served many customers requesting vegan menus or expecting a variety of international flavors. Franchises must continue adapting to the marketplace. Before choosing a franchise in 2011, potential franchisees should ask franchisors a few vital questions

Choosing a Franchise - 5 Questions for Franchisors

1. What time is devoted in this franchise to developing systems and markets?

Franchisees want to know how much time a franchise allows for research and development purposes.

2. Does the franchisor plan any innovations?

Before people invest in a franchise, they should know if the business is willing to change with the times. Obviously by the nature of franchising, certain elements stay the same in the system. Yet business ventures have to keep up-to-date with the mood and direction of the marketplace.

As well, franchisees should be prepared for the degree of change. Does this franchisor hardly ever make changes or do they modify processes, colors, or flavors on a regular basis? No franchisee can be prepared, however, for everything that lies ahead in a franchise.

Even franchisors have no control over external factors such as the economy or changing governments and different regulations. Yet franchisees should arm themselves with as much information as possible before they buy a franchise. Franchisees must perform 'due diligence' (researching the franchise from every angle).

3. Does the franchise allow franchisees opportunities for creativity?

One basic fact about franchising is that each franchise has systems and processes and franchisees are expected to follow them. Of course, franchisors can allow franchisees to express their individuality. Since buyers will be working within the framework of a franchise, they should be aware about the requirements of a specific business.

Is this franchisor very rigid in their approach? Will the franchisor welcome a franchisee's creative spirit? Potential buyers need to know the score. The franchise has to suit you.

4. Does the franchise have good analytical systems?

The franchise should have a system capable of analyzing the customers and current marketplace - even franchisees. A franchise cannot be effective if its leadership and management are not in touch with the entire business. A trained and friendly staff, as well as customer satisfaction, also plays a huge part in the success of any venture.

5. What is the company's vision?

A franchisee should ask the franchisor about their vision for the company. Franchisees will learn plenty about the business from the answer to that question. Potential buyers can get a better idea about whether or not this franchise is right for them. Keep in mind during 2011 and beyond that there is one 'constant' you can always expect in franchising - constant change.