The Value of a Franchise Partnership

There are many reasons an entrepreneur may choose to engage a franchise as opposed to venturing out to develop a business on his or her own. Just like personal relationships, most businesspeople are drawn to a franchise because they like how the brand looks and feels. Maybe it was the brand’s marketing that caught their eye. Maybe it was an experience they had with one of their franchise locations. Maybe it was a product or service that blew them away. No matter what it was that attracted them to the franchise, they most likely believed others would find what the franchise had to offer equally appealing.

In most cases, the first attraction to a franchise comes through a product or service experience. Most of us know when we experience something a little special or uniquely different. All of us who have been to Chick-fil-a can positively identify why it’s not like every other fast-food restaurant. The same is true for brands like Orange Theory Fitness, Starbuck’s, and VIO Med Spa. Each of those brands mentioned have gone beyond what others have been able to do when it comes to mastering the components that make for a great business in their sector.

In the world we live today, we expect every business to offer quality products and services. After all, if the product or service does not meet expectations, that is usually where the relationship ends. It is what happens beyond the product or service that matters as much, if not more, to the business’ long-term success.

How employees interact with the customers of the business is crucial to the overall experience. This is where strong training systems and leadership come into play. How consistently a business can deliver its products and services to its customers can impact a business’s ability to provide an experience its customers can rely on. Such an experience is ultimately driven by proven operational process and strict management those processes.

While customer experience is greatly impacted by the quality and consistency of the products and services offered and the customer service provided by the team responsible for delivering on the promise, the customer experience is polished off by the environment within which it all happens. How it looks, feels, and smells matters. A clean, warm, welcoming, positive, and aesthetically pleasing environment plays on our senses and tells us this is a good place to be, like home.

Notice in the entire conversation we did not talk about price. Price is a consideration that should happen after everything else has come together. Starbuck’s is not the cheapest coffee in the world, but people demand it for many reasons. That’s partially because of the brand they’ve been able to create. It’s become, like other brands such as Apple, a social identity brand. People want to be known as Starbuck’s drinkers. Maybe it’s for reasons of status. Maybe it’s to feel like they belong. Maybe it’s the coffee. Whatever the reason, they are choosing to pay a little more for that nautical maiden on their cup. Belonging is a very important part of creating a great brand. It also requires great marketing prowess. This is something some franchise brands have in place that single unit entrepreneurs would take years to develop, if ever.

The idea of owning a “turnkey” proven business is extremely attractive. Especially when faced with the prospects of the unknown. Knowing that someone has not only figured out what makes for a good business, but they’ve also figured out the branding, marketing and operational systems can be worth every bit of the royalty fee a franchisor will demand. After all, the percentage of sales a franchisor will demand for having done all that work to develop a successful business model may pale in comparison to the work, financial investment, and risk one might have to take on if you were to do the same on your own.

Randy Stepp is a Principal with Renaissance Leadership Group. RLG is a full-service business and franchise development company whose purpose is to help business owners realize their dreams of independence and freedom.

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