Expanding a franchise isn’t going to happen naturally at first. Franchise growth is something you’ll have to cultivate. To ensure it’s going to be sustainable in the long run, you need to make sure you’re building a stable foundation.
To accomplish that, you’ll have to take several steps to prepare. Take a deep dive into every aspect of your business and adapt any of your practices that are not realistically scalable.
Perfect Your Business Model
With more than 773,000 franchise establishments in the U.S., there’s no shortage of competition for franchisors. Whatever industry you are in, there’s probably somebody else already doing something similar to what you’re doing. That’s why you have to ensure your business model is a well-oiled machine before launching your franchise growth.
The first step, of course, is deciding if franchising is right for you. If and when you decide to franchise your business, your early franchisees will essentially be your “beta testers.” Listen to them for feedback about what works and what doesn’t, and make adjustments accordingly.
Now is the time to ensure your business model is crystal clear, thoroughly define your target customer base, and ensure your practices and processes are scalable and economically feasible.
Focus on the Customer
As you begin expanding a franchise, don’t lose track of what is propelling your business forward in the first place: the customer.
Take the time to develop your goods and services further before your franchise system gets too big. Getting feedback from customers will allow you to finetune your business model and maybe even provide inspiration for new offerings.
You can also identify any pain points regarding your customer service and get those smoothed out before they cause any negative PR. Getting off on the wrong foot with your customer base or having bad reviews on social media can lead to a big hit on your bottom line.
Make sure your business is easy to get in touch with online. If people know they can message you on social media or that you’ll respond to posts and comments quickly, you have an opportunity to set a high standard for customer service and response times. Being responsive and receptive to your clients’ concerns will help you build strong relationships and customer loyalty.
Your top priority should be to develop a loyal customer base. No matter what type of business you’re in, there’s going to be a competitor ready to lure your customers away. You have to give them a reason to keep coming back to your business instead of going elsewhere.
Excellent customer service is an essential component of generating customer loyalty, but you may need to think out of the box to set your business apart from your competitors. Try offering a rewards program or discounts for returning customers. Listen to your customers and anticipate their needs. You’ll start coming up with ideas to keep them coming back time and time again.
Set Franchisees Up For Success
The people you choose to award franchises to will dictate the failure or success of your franchise growth. It’s imperative that you carefully choose who you allow to own and operate your business’s franchised locations.
With a clear and concise business plan, you can define your brand and your business’s direction. Include all of these details in the Franchise Disclosure Document (FDD) and ensure any potential franchisees fully understand and agree with your vision and goals for the franchise system.
When business talks get past the initial reviewing of the FDD, you’ll have to decide if the prospective franchisee is a good fit for your business. If it doesn’t seem like you’re on the same page, you aren’t obligated to award the franchise. Be selective. This decision will set the groundwork for the franchisee’s success as well as your own.
Developing a comprehensive operations manual, brand guidelines, and marketing material for your franchisees will ensure your brand image is consistent across the board. Offering franchisee assistance with legal documentation, licensing or registration, accounting, etc., will benefit both parties, as well.
Focus on Education
Once you’ve granted a franchise to a new partner, there should be a continuous stream of communication and education for the new owner. You and your development team should be there for support as the franchisee builds the new location and prepares to open, but your duties don’t end there. A successful franchisor will prioritize and support existing franchisees’ success, even while growing and expanding their brand.
Keep an open line of communication between your home base and all franchise owners. It’s your job to treat them as customers, in a sense. Listening to their feedback and addressing any of their concerns goes a long way.
Your franchisees are the ones in the field overseeing your new locations, and they can provide valuable insight and ideas. Taking stock of their observations will make them feel valued and advance the business’ interests.
While you can and should be open to learning from your franchisees, keep in mind that your role as a franchisor is to be a teacher. You’re bringing them into your ecosystem. Help them learn the ins and outs of how your business works. After all, you have spent the time and effort developing systems that work best for your application.
Make sure your franchisees have access to all of the resources and training they need. If you provide them with the proper tools, you will both benefit.
Avoid Complacency
Just because your business model is running smoothly now doesn’t mean it will continue to do so. Always be on the lookout for ways to improve and be willing to adapt when the situation calls for it.
Continuing to refine your processes and products goes hand in hand with listening to your franchisees. Things that worked well at one location may need to be tweaked for another. You could have an old process for which a new franchisee discovers a more efficient solution.
Slow and Steady Wins the Race
When it comes to franchise growth, finding the balance between quick expansion and having a well-researched and tested business model can be a challenge. It’s all about proper planning, preparation, and flexibility. Taking all of these factors into account will help ensure your growth is not undermining your brand or your long-term success.
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