How do you know if you have found the right franchise?
In making a decision to go into business, it is first and foremost important to ensure that there is a good fit between you and the franchise you are intending to join. In all my business ventures, I place up to 75% of the decision-making on the people and the organization match.
Here are seven areas you should consider for matching:
- Passion of leadership team. The passion of the leadership team should be such that you become enthused and excited about being part of that organization.
- Clear Vision. You must share the vision of the organization. Why does it exist? Who is it trying to serve? Where are they going?
- Enthusiasm for growing the business. Are you comfortable with the growth plans the company is pursuing? Some companies like to grow slowly while others pursue an aggressive growth strategy. Who are you more comfortable with?
- Enthusiasm for franchisee success. Make sure you are comfortable with their approach and attitude towards your success. Good franchise companies are interested in the success of their franchisees. However, some have a more ‘laid back’ approach while others have a more ‘involved’ approach. There is no right or wrong; it is a matter of your comfort.
- Commitment to innovation. Be sure that you are comfortable with the organizational commitment to innovation. What areas are they strong in innovating? How often are new products, services, and processes introduced?
- Organizational values. What is the company’s mission statement and value system? This is big and you need to make sure you are totally comfortable with this. At Pure Nectar (PureNectarJuice.com) this is very important to us and we are driven by our values of Quality, Excellence, Integrity, Customer service and Teamwork all of which we incorporate into our daily Code of Conduct.
- Customer values. Make sure you are comfortable with the way the franchise organization expects you to treat the customer. After all, we exist because of the customer and if you are not comfortable with what is expected of you in terms of the customer service standards, then you may not have a good fit.
These seven points are important in analyzing a fit between a potential franchisee and the franchisor. The business model and what success attributes are required of me are secondary to these seven points. In my view, if I can’t get past these areas, it doesn’t really matter how good the business may be because I will always be uncomfortable with the people, the organization and what it stands for and as such it will have a huge impact on my success.
Author: Harish Babla is the CEO of Global Franchise Masters Private Limited and the Global Head for Pure Nectar (www.PureNectarJuice.com).