The biggest area of turn-key businesses is franchise. There is a franchise for every industry in the world. Plus, they are fairly easy to acquire and come with practically a pop out of the box pre-assembled system. McDonald’s is a prime example. In fact, a “supersized” example with $136 billion in market cap as of April 24, 2020.
Today, there are a few topics we’ll explore:
- Business Format Franchise
- The Franchise Prototype
- Franchise Prototype Standards
Business Format Franchise
The business format franchise came from an earlier model called the “trade name” franchise. The big change was in the rights. During the “trade name” days, the franchise owner only had marketing rights. Now, however, franchise owners have owning rights to the entire business, including systems. This has allowed for a shift in focus from the past in which the quality and name recognition of the products primarily carried the business compared to today in which standard operating procedures and repeatable processes, such as sales operating models and techniques, also drive the business.
The Franchise Prototype
It was really the franchise prototypes that allowed for the changes to be made that help today’s franchises really shine with the techniques developed by the owners instead of the corporation. This can make a significant difference in the success of the franchise, as the owner can custom tailor their marketing and promotions to the direct needs of their
local target customers.
Franchise Prototype Standards
Now, the above being said, no one in their right mind would purchase a franchise if the parent company didn’t have a solid plan of action set up to ensure the future success of the business. Below are a few foundational standards that are put into place to help jump start the process of opening a successful franchise:
- Build a user-friendly model that can be used by individuals of any skill set.
- Build a defect-free model.
- Build a model with operations manuals.
- Build a model that will provide guaranteed, consistent results.
- Build a model that encompasses the same branding in color, dress, and facilities
These are all ways the parent corporation makes sure its brand stays the same and consistently in front of the minds of customers. When you are purchasing a widely-known brand, you will attract customers just for being you.
If you are considering purchasing a franchise, talk with one of our experienced business coaches to further explore your options and incorporate the proven perspective of an independent third-party business development expert to your due diligence evaluation. I look forward to connecting soon and showcasing further how our proven “5 Step Profit Formula” and revenue growth acceleration strategies will make your dream of building, systematizing, and expanding your own multimillion-dollar business a reality!