Best Tips to Help You Run a Franchise the Right Way

One of the most often utilized strategies for entrepreneurs is to buy into a franchise. Running a franchise location has certain benefits. Your restaurant or store will already have high penetration in the minds of consumers. You could benefit greatly, for example, from national advertising by the home company. However, despite all the advantages that running a franchised business entails, many franchisees still fail. To help make sure you succeed, below are some great tips you can use to help you run your franchise business the right way.

Consistency Is Key

One of the main reasons why franchises succeed in the first place is due to strict consistency. According to McDonald's, 80 percent of their restaurants are owned by franchisees. However, no matter what McDonald’s you visit, a quarter pounder should have the same quarter pound of beef, same two slices of cheese, same two pickles, same amount of slivered onions and the same poppy seed bun. It’s this strict adherence to consistency between franchise locations that lets the consumer know that no matter what McDonald’s they visit, they will obtain the same exact products.

Follow the Franchise Agreement

While many franchisees wish to put their own twist on their own franchise location, you have to be careful in regards of how you go about doing that. Overall, what you are allowed to do and what you’re not allowed to do should be covered in the franchise agreement. This contract should include very specific instructions in regards to how the location should be managed, how the products should be made and how day to day work flow operates. Not following the franchise agreement can of course hurt consistency with the brand. It may also result in your franchise agreement suddenly being terminated due to a contract breech.

Communicate with the Franchisor

One of the most important elements to a successful franchise location is a healthy and open relationship between the franchisee and the franchisor. Try to insure that the relationship remains fairly positive and that the lines of communication are always open in both directions. You may encounter certain problems. Franchisor representatives should be able to help you with different issues you encounter. Developing a healthy relationship between other franchisees can also help you pool your knowledge and skills in a mutually beneficial fashion.

Place a Strong Emphasis on Customer Satisfaction

A franchise location will be compared against other locations under the same brand. If all things go well, the product should be identical in all locations. With that in mind, there may not seem to be many ways to stick out against other franchise locations. However, you can do so by placing a strong emphasis on customer service. Quality customer service will produce higher customer satisfaction. These days, many consumers decide what stores and restaurants to give their business based on customer reviews. Providing excellent service is crucial to obtaining high marks on review websites.

Ingrain Yourself into the Community

However, franchisees sometimes face challenges that other businesses do not. A new franchise location may face stiff competition from other local businesses that are not associated with a franchise. Those businesses may be able to better maintain a loyal customer base. If not handled properly, a new franchise location may not be viewed favorably by a local population in favor of other local small businesses. Whether or not you start a cleaning business or open up a restaurant as part of the franchise, you need to bridge this gap and become an important part of that community. Donating your time and money to local charities, causes and school programs can go a long way in this regard.

While franchisees are given a plan to follow to achieve success, many still fail. Make sure you put the effort in necessary to achieve product consistency, adhere to the franchise agreement, provide quality service and cater to the local audience. If you do so, you could indeed make a small fortune as a franchisee.

About the author

Hannah Whittenly is a freelance writer and mother of two from Sacramento, CA. She enjoys kayaking and reading books by the lake.


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