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Tips on Running a Successful Franchise

Written by: Michael Hemenway

Article Overview: Yes, it is everyone’s dream to own a successful franchise. It is not an unlikely occurrence and is possible! Here are some important tips on running a successful franchise. Choose the right franchisor. It is pertinent that you choose an established company with a proven track record and a good reputation. The franchisor should provide all …

Tips on Running a Successful Franchise

Yes, it is everyone’s dream to own a successful franchise. It is not an unlikely occurrence and is possible! Here are some important tips on running a successful franchise.

Choose the right franchisor

It is pertinent that you choose an established company with a proven track record and a good reputation. The franchisor should provide all the necessary assistance and help needed to run a franchise. It is also important that the franchisor belongs to the Franchise Association and runs its business in accordance with the practices laid down in the “Ethics to Franchising” guide.

Maintain a good working relationship with your franchisor

Communication should be reciprocal, regular and any advice given should be acted upon. Whatever issue you may be encountering, take comfort in the fact that your franchisor will be able to assist you. Use your franchisor’s experience that they have gained over the many years.

Market your business

There is no one else better to market your franchise business than yourself. Use the passion you have for your product or service to talk to people. The enthusiasm will show and you will be more successful. Monitor the results of any marketing activity to make sure you are not wasting your money.

Monitor cash flow

Keep referring back to your business plan and manual and review the situation in relation to your forecasts and projections. Use the figures and statistics to make informed decisions about your business. Do not underestimate the working capital that is required to run the franchise business while it is growing. Careful planning and monitoring will prevent any unpleasant surprises from occurring.

Good time management

Time management is absolutely pertinent as very few people have time these days. You will require discipline, planning and flexibility for successful time management as it is far too easy to become distracted when you are working for yourself with no one to report to. Be flexible and regularly challenge every task associated with running your business.

Keep up to date with paperwork

Many make the fatal mistake in doing all their paperwork for the month in one day. The danger in this is that by the end of the day you are more likely to be tired and make mistakes. Therefore, do a small amount of the paperwork regularly. Increase your computer skills so that you can make full use of the accounts systems available.

Recognize your strengths and weaknesses

This may be hard to do but it is very important that you recognize your own strengths and weaknesses. You can use them to your advantage. If your weakness is managing a certain aspect of your business, employ someone to manage it for you. Your time will be better and more productively spent on working with the fundamentals of running your franchise that you are good at and enjoy doing.

Reward Yourself

When things go well, reward yourself! Go ahead, you deserve it. Set your self a goal and when you achieve it be sure to congratulate yourself.

Have fun

Most of all, HAVE FUN! You chose to purchase a franchise business not only to become your own boss but also to actually enjoy what you are doing. Yes, a owning a franchise does require a lot of hard work, commitment, determination and persistence. But do not lose sight of the reason you started a franchise. Enjoy your business and do not lose your sense of humor.

One of the most important factors in running a successful franchise is having the correct outlook! So go ahead, build a successful franchise.

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Business Tips - How about: Tips for managers to handle employees more effectively? Tips on how to deal with difficult customers? Tips on how to deal more effectively with suppliers? The only three I have in mind right now, but will try to come up with something else. Chris
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.


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