The biggest area of turn-key businesses is franchises. There is a franchise for virtually every industry in the world. And apart from cost, barrier to entry is fairly low and generally come with a cookie cutter done for you system. McDonald’s is a prime example. In fact, a $40 billion, 28,707 strong example.
The business format franchise came from an earlier model call the “trade name” franchise. The big change was in the rights. During the “trade name” days the franchise owner only had marketing right’s, now franchisees have owning rights to the whole business including all systems and processes. This has allowed for a shift from the quality and brand recognition of the products of the business to sales, conversion, and delivery techniques that carry 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
However, only a fool would purchase a franchise if the parent company didn’t have a sustainable model and an effective plan in place. So, what are the minimum standards to ensure the jumpstart of a profitable franchise?
- Build model of prospective customers/clients, suppliers, creditors and employees who will consistently offer high quality work.
- 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 codes.
These are all ways the franchisor makes sure their brand stays the same and in the front of the minds of customers.
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