Entrepreneurs interested in pursuing business ownership but uneasy about going it alone often turn to franchising. Franchising is a proven system of distributing products or services involving a franchisor and franchisee.
The franchisor establishes the brand’s trademark and business system. The franchisee pays a royalty and initial fee for the right to do business under the franchisor’s name and system.
In the U.S. alone, there are more than 750,000 franchises. Franchises provide employment to more than 8 million Americans. While it’s a huge part of the workforce, it takes a lot to create a successful franchise. Many burn out before the grand opening.
Below, we’ve detailed the five top qualities that contribute to a successful franchise.
What are the Keys to Franchise Success?
Once you’ve understood the fundamentals of franchising, it’s time to pick which is the best fit for you. Here are some factors to consider that should drive your decision-making:
- Brand recognition: Having an established brand is one of the greatest assets for a franchise. This creates a customer base that already wants your service. Alone, this can be one of the hardest things to establish, and many businesses will try for years and still struggle to have returning customers. With a well-known brand, you get loyal customers from day one.
- A healthy industry: Some industries are booming; some are stagnant. It’s up to you to confirm the opportunities available, the budget, and desired work expectations, but choosing the right industry is incredibly important to the overall success of your business.
- Profitability: Will this business make me money? It’s a must to verify the business will be able to sustain you in short-term to create long-term financial security. Examine the past financials of the franchise as well as its growth trajectory and make sure to talk to franchisees about their experience.
- Sustainability: In addition to profit, your franchise must survive. Look for franchises that have been around and have tremendous growth potential.
- Marketing: Check out how the brand is revolutionizing their marketing strategies. Social media is a powerful tool now, and many companies are using it. Make sure the industry you’re looking at is using it to amplify and elevate the brand.
Why Franchising is a Great Choice
There’s a reason many people head to franchising when deciding to go into business ownership. Franchises have brand recognition, which often comes with a built-in customer base. They have a franchise system with a network of other franchisees. That means shoulders to lean on and experiences to learn from. In addition, there’s also support and training from a leadership team that understands your success equals their success. In general, franchises are relatively successful. Be mindful, there is no guaranteed financial prosperity, but it’s definitely the more promising route over starting from scratch.
What Soft Skills do I Need?
It takes more than a strong franchise brand to help you create success. You have to have the skills it takes – or be willing to develop those skills – to be the right kind of good franchisee to help the franchise truly thrive. That’s where soft skills come into play.
As a good franchisee, you should be:
- Passionate: Passion and drive are often the biggest motivation to be successful in any endeavor, franchise included. Having a passion for your brand will be visible and contagious to your team and your customers.
- Coachable: Leave your ego at the door. It’s imperative you have a willingness to learn and grow. You must be able to accept training and guidance from the franchisor. It’s helpful to also view every experience, the good and the bad, as a way to learn. In turn, those lessons will lead you to more profitability and success.
- Goal-oriented: To be a successful franchise owner, you must be goal-oriented. Having clear ideas of accomplishments you want to achieve and financial milestones you want to make creates a motivated and more productive environment for you and your staff.
- Adaptable: Possessing the quality to be flexible and adapt to changing circumstances is crucial in franchise ownership. Being resilient in the face of mistakes as you establish your new business sets the proper tone for a successful franchise.
- A risk-taker: Franchising can involve taking some risks. We’re not asking you to be a daredevil or reinvent the wheel, but it’s best to not be dominated by fear or concerns. Be open to change and willing to take moderate risks.
Consider Launch Entertainment
Launch Entertainment checks all the boxes for a successful franchise. The family entertainment center industry is projected to reach $40.81 billion by 2025.
Franchising for nearly 10 years, Launch has been an innovating leader, completely revolutionizing the family entertainment industry. Launch offers you an incredible opportunity to engage with the community and be a part of a trusted system that is rapidly expanding. If you’d like to learn more about investing in a franchise, click here to request more info.