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The Best Franchise Companies Share These Attributes

Searching for a franchise company involves hundreds of intricate considerations, and it’s a decision that requires enormous thought and analysis. While it’s too simplistic to say that there is a definitive set of attributes that makes a company a good fit for you, there are certain characteristics that many of the best franchise businesses exhibit on a daily basis.

They prioritize effective communication

One of the most astute things you can do during your franchise search is paying close attention to the communication habits of the various franchise representatives that you interview with. The tendencies they display during this phase are likely to continue should you move forward with the relationship, so think about how you want your prospective business partner to communicate.

Are they prompt with responses and forthcoming in terms of detail, or do they make you work hard to get any little snippet of information? Do they help you find the answers you are looking for, or do they leave you flailing in the wind to figure things out on your own? Successful franchise companies understand that effective communication is a crucial part of their organizational foundation.

They maintain integrity in all interactions

Integrity means so many different things in business. It means that the corporate representatives don’t have anything to hide. It indicates that when things get difficult, they won’t go looking for a quick, and possibly legally dubious, fix. It means that the company has actual value to provide and that it isn’t interested in duping people out of their money or time. It shows that the franchisor treats all of the people involved in the business, including the employees, customers, vendor partners, and franchises as human beings.

They look for long-term partners

Not every endeavor is going to work out, of course, but one thing that sets high-quality franchise companies apart is that the look for franchisees they can build long-term partnerships with. These are the kinds of franchise owners who become even more invested in the company ecosystem over time, and continually educate themselves about the company’s values and culture. A successful franchisor prizes these types of relationships with their franchisees and looks for partners they can trust to help grow the business.

They have stable leadership at the top

Maintaining stable leadership doesn’t equate with having the exact same executive team together for a certain number of years. New opportunities are going to arise and people will inevitably want to pursue them. What it does mean, is that the company should largely be free of organizational turmoil surrounding leadership changes. No business is perfect, and sometimes mistakes happen that need to be rectified. But what should trouble you is noticing a defined pattern of instability in the highest echelons of the company.

They value their customers

You can generally view a company’s ethos towards its customers as a microcosm of its relationships in general. If the company culture is built around disdain for the customer, then this feeling will infiltrate other areas of the business as well. On the other hand, if respect and value for the relationship between the customer and brand are built into the company’s fabric, then it’s likely that they approach every relationship with this same level of respect and decency.

Next Steps

If you’re considering a franchise investment or just have questions, feel free to contact one of our franchise specialists to learn more about the process and all the different franchise opportunities by completing our request form or calling 1-877-650-5551.

2015 Predictions

Quick-service restaurants continue to dominate the franchising landscape. They make up over 20 percent of Entrepreneur’s 36th annual Franchise 500®.  Yet, three other business sectors combined account for one-third of the companies on the 2014 list. Can one of the following fast-growing sectors overtake quick-service restaurants with the most franchise companies in 2015?

Image from entrepreneur.com

Image from entrepreneur.com

Maintenance Service

Maintenance service franchises account for 12.6 percent of the Franchise 500®. What makes these franchises so popular? For one, they have low start-up costs, most of which are for purchasing tools and supplies. Many maintenance franchises, (especially cleaning ones), can be operated out of the owner’s home. They’re ideal for people who dream of owning a business but have a limited budget on which to operate it. Residential cleaning and restoration services are increasingly popular. So are businesses that offer environmentally friendly solutions for cleaning, pest control and odor elimination.

Image from condorclean.net

Image from condorclean.net

Personal Care

Tied with the maintenance sector at 12.6 percent of the Franchise 500® is the personal care business sector. Fitness franchises have 21 companies on the list while senior-care companies have 23. Fitness studios are becoming more popular than the big-box gyms. Potential franchise owners find their lower costs more attractive than those for the big-box gyms. Start-up costs for one-third of the fitness franchises on the Fortune 500® are less than $100,000.

Image by clubsolutionsmagazine.com

Image from clubsolutionsmagazine.com

The highest ranked senior-care franchises have been around for at least 15 years. However, America’s aging population is motivating entrepreneurs to introduce new products and services in this sector. Home-accessibility equipment and patient advocacy are just two of the developing industries. People looking for a franchise opportunity in an emerging business should look into senior-care possibilities.

carecentraltn.com

Image from carecentraltn.com

Children’s Businesses

Parents love to invest in their children. Everything from preschools to tutoring services to other programs that supplement traditional education are increasing in popularity. That’s why children’s business franchises make up 8.2 percent of the companies on the Fortune 500®. One of the hottest segments in this sector is STEM (science, technology, engineering, and mathematics). Tutoring franchise Mathnasium showed impressive growth in 2014 and made it into the top 100 for the first time.  Another popular franchise is Bricks 4 Kidz, a Lego engineering company that’s one of the youngest companies on the list.

Image by shopthearb.com

Image from shopthearb.com

So is it possible for one of the three fastest growing sectors to overtake quick-service restaurants as king of the franchises?  If any of them can, it might be the personal care sector. Growth has slowed in the maintenance franchise sector due to high-profile lawsuits filed by franchisees, which are exposing some of the industry’s unsavory business practices. Children’s businesses are growing but still trail quick-service restaurants by more than 10 percent. The personal care has a lot of ground to cover to overtake quick-service restaurants, but innovative products and services and a growing need to support the country’s longer living population might give this sector the impetus it needs to become number one.

Next Steps

If you’re considering a franchise investment or just have questions, feel free to contact one of our franchise specialists to learn more about the process and all the different franchise opportunities by completing our request form or calling 1-877-650-5551.

By Annie McGreal