10 Essential Franchising Tips from Top Experts

A collection of franchising advice from some of the industry’s leading voices.

As 2021 approaches, it’s a good time to assess your current business and make plans for the year ahead, which could be a big comeback year. Whether you’re leading in food and beverage or excelling in services, here are 10 pieces of valuable advice from the best in franchising:

1. Build for Success

   “The main reason anyone should enter franchising is to gain wealth and control their financial future. Build your franchise to grow and eventually sell. Choose a franchise that generates enough profit to reinvest in more franchises, creating a cycle of increasing returns. Keep doing this until you have a large, passive income stream, along with the opportunity for a big payout when you sell a much larger franchise.”

   – Dan Rowe, Fransmart

2. Focus on Longevity

   “When starting any new venture, it’s important to build strong foundations from the beginning to ensure long-term success. Focus on creating a lasting legacy and being the best at what you do. Combine this with a team of people who share your vision, and you have a winning formula.”

   – Pip Wilkins, British Franchise Association

3. Invest in Technology

   “Invest in technology to build strong relationships with your franchisees. An internal online system allows 24/7 access to training, support, and marketing resources. A web-based business management tool can help boost sales for franchisees and allow franchisors to offer remote support.”

   – William ‘Bill’ Edwards, Edwards Global Services

4. Do Thorough Research

   “Look for a franchise with strong finances, experienced management, and a history of success. Check the financial performance outlined in their franchise disclosure document to assess the success of their franchisees. Consider choosing a business that was essential during the pandemic. Talk to many of their franchisees during your research.”

   – Catherine Monson, FASTSIGNS

5. Stay Informed

   “Entrepreneurs today need to stay in tune with the market—understanding both unmet needs and the values that influence buying decisions. Simply offering a better service is no longer enough; brands must meet both practical and emotional needs of their franchisees and customers.”

   – Justin Mink, Scorpion

6. Follow Your Passion

   “Three key points: join a strong, winning team that aligns with your values and vision. Invest in a business that allows you to build something for yourself, not just a job. Finally, follow your passion and do something you truly love, not just something that makes money.”

   – Brad Sugars, ActionCOACH

7. Consult Trusted Experts

   “It’s surprising to learn that about 80% of businesses fail when they decide to franchise their concept. This often happens at the start when they choose the wrong franchise development consultant. Only work with certified consultants with a proven track record to avoid costly mistakes for both you and future franchisees.”

   – Sean Goldsmith, Franchise Peer Boards

8. Ask the Right Questions

   “International franchising can be a rewarding strategy, but it’s not easy and will test you. Before expanding internationally, ask yourself why you want to do it, what your goals are, and how it fits with your overall business plan. At The Franchising Centre, we encourage people to ask tough questions from the start and often serve as a sounding board to test their initial assumptions.”

   – Farrah Rose, The Franchising Centre

9. Learn from Experience

   “COVID-19 was a challenge for everyone. In 2021, new franchisees will likely invest in proven franchise models that survived the pandemic or explore new franchise businesses in sectors that were less affected. Entrepreneurs entering franchising should focus on models with strong financial foundations to ensure stability before selling franchises.”

   – Christine Kelly, Little Kickers

10. Plan for the Future

   “This past year has brought many changes, but there are still growth opportunities in franchising, especially looking toward 2021. Franchise owners need a clear strategy for their business operations, including understanding fixed costs, cash flow, margins, labor needs, and risk tolerance. Most importantly, do your research and review the brand and contract carefully before purchasing a franchise.”

   – Robert Cresanti, International Franchise Association

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