Strong franchises succeed from the start, grow rapidly and even end up moving beyond Australia and into international markets. Others face various roadblocks, and may have spurts of growth but struggle to find their footing. While there is no foolproof formula for success, the best franchises tend to share certain characteristics. This article explains the top five to emulate ton give your franchise the best chance of success.

A Strong Brand

Picture some of the world’s best-known fast-food franchises. More likely than not, what immediately comes to mind is their logo or a particular colour. A distinctive image leaves a lasting impression on customers. The strong franchises have a strategy for branding, and they know how to implement and protect it.

Savvy franchisors will register trade marks, such as:

  • logos;
  • slogans; and
  • business names.

Additionally, they will monitor potential misuse of their trade marks. This protection ensures that their franchisees have the exclusive right to use the brand.

A Point of Difference

The most successful and strong franchises have an innovative offering. They provide distinctive goods or services that separate the franchise from competitors. This may be a secret recipe for a dessert or a unique way of hiring alcohol for weddings. For a network to grow, the products or services offered have to be able to capture the attention of a sufficient number of customers. The best franchises identify demand, or perhaps even create it.

Innovation can also encompass how a franchise offers their product or service. Great franchisors also know how to make themselves the best at what they do. Take courier franchises for example. With many entering the market, the ones that have staying power and higher market share are the ones that offer the best customer experience, faster delivery times, lower prices for the same quality of service or some similar competitive edge.

Ongoing Support and Training

Strong franchisors know that educating and supporting franchisees does not end with the initial training program. Part of the appeal of buying a franchised business is that you are purchasing the systems and processes of a franchisor, and can draw on their knowledge and experience.

Many franchise agreements give franchisors significant discretion about how much ongoing assistance they offer to franchisees. Model franchisors act to improve the overall health of their network. They set up systems and processes to support franchisees and help them become profitable from the outset. However, good franchisors are also willing to provide additional assistance to a franchisee who may be going through a rough month. Knowing when to step in and provide extra one-on-one assistance is valuable. Potential franchisees will often speak with existing franchisees before buying into the franchise. If franchisees feel supported and happy, you are more likely to grow the franchise.

Strong Franchisor-Franchisee Relations

Franchises that have a good relationship between the franchisor and franchisees tend to perform better. By demonstrating a willingness to proactively address issues as they arise, strong franchisors can build loyalty and commitment among their franchisees. This keeps franchisees in the franchise, and stops problems from snowballing into expensive disputes that can slow down the franchise growth.

Franchisees like to feel as though they can approach their franchisors as needed, and that their concerns will be given genuine consideration. The best franchises foster a culture where both sides are encouraged to act reasonably and honestly in pursuit of joint business goals.

Reasonable Fees

Profitable franchisees contribute to the strong reputation of the brand and help scale the network. Therefore, although franchisors need to ensure that their fees cover the expenses of operating the network, this should not come at the cost of a franchisee’s profits. The strong franchises strike the right balance between the financial interests of franchisees and franchisors.

This also means that the fees charged should come with some value. For example, if a franchisor requires fees to be paid into a marketing fund, franchisees will be more willing to pay if they know that the franchisor has a history of strong advertising practices that boost the visibility of the entire franchise.

Key Takeaways

If you want to grow your franchise fast, it pays to emulate what works. While all franchises are different, the best share important characteristics, including having a strong brand and building good relations with franchisees.

If you have any questions about setting up a franchise, call LegalVision’s franchise lawyers on 1300 544 755 or fill out the form on this page.


About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.
Amritha Thiyagarajan

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