Good or Great? Why would you ever consider a good franchise brand?

Investing in a small business is stressful, no matter who you are. No one wants to make a poor decision about a business invest. No one wants to fail. No one wants to spend the time developing a concept only to see it flounder. Everyone wants their dream to become real. Everyone wants to make a difference in some way, shape or form.

For many, a franchise business provides an opportunity to own a business that may have otherwise been unlikely or impossible. Most do not have the knowledge, skills, or industry expertise needed to develop a business that can realize success quickly.

Anyone who has tried understands that building a business takes time. It takes time to try, fail, try again, and try once again as you work to figure out the path to success. It takes time to build the systems and processes necessary for consistency. It takes time to learn what you do not know.

This lengthy business development process is necessary for the creation of a great business. It also requires the entrepreneur to have significant resources available to withstand the trials and errors that are a natural part of building enduring greatness.

As such, most do not have the money nor the time necessary to figure out a viable business model. Hence the allure of franchising. Partnering with someone who has already figured it out is very attractive.

Just as no two businesses are created equal, no two franchisors are the same. Some are good. Some are great. Therefore, when choosing a franchise relationship, it is important to understand that a good franchisor may not lead you to the pot o’ gold at the end of the rainbow.

Characteristics of a Great Franchisor

• They are continually developing the brand to become well recognized in every market.

• They are actively working to ensure consistency between locations. This includes service delivery, product offering, marketing, brand representation, customer service, etc.

• They only grant franchise licenses to the most qualified and most committed.

• They grow for the sake of creating a truly great business that makes a difference in the lives of those they serve.

• They ensure franchisee success through the establishment of protected territories.

• They ensure franchisee success through their ongoing training and development.

• They employ the best and the brightest who understand the business better than you do.

• They hold everyone accountable for consistent systems execution.

• They develop a culture of collaboration among franchisees.

• They do not view the initial franchise fee as a profit center. The initial franchise fee is reinvested into the franchisee. The fees are used to support the franchisee as they prepare to launch their business. Be it through hands on training, on location launch support, marketing support, location setup support, etc. the franchisor focuses on franchisee initial launch success as the priority.

• They are as passionate as you are about the business and demonstrate this through their leadership and their commitment to your success.

• They are open to feedback because they understand that they do not have all the answers and those who are in the trenches may know better.

The above characteristics are present in the great ones. The good ones are lacking in most. Remember that good is average and no one pays for average. At least not for very long. As a franchisee, the difference between average and exceptional, good and great, can mean the difference between growth and stagnation, and the development of a business or a hobby.

If you commit to send 4%, 5%, 6% or 7% in royalties from your gross revenue to a franchisor they should also deliver on their commitment to you, which is to help you become a great franchisee. Granted, you must do your part. However, if they are accepting you as a franchisee, hopefully they have determined that you have what it takes to succeed and aren’t merely looking for someone to open another location so they can collect fees while you struggle to survive.

The franchisor matters as much as the franchisee. If you are looking to invest in a franchise brand you owe it to yourself to first know if you have what it takes to succeed. Then you should determine if the franchisor has what it takes to help you achieve success. If you are not sure about either, maybe you should pause until you are sure about both.

Randy Stepp is a principal with Renaissance Leadership Group. RLG is a full-service business development company driven by Purpose, Passion, and Strategy and the goal of helping entrepreneurs realize their vision for their business.

Visit Renaissance Leadership Group at www.renaissanceleadershipgroup.com to learn more.