You Turn Me Right ‘Round Baby, Right ‘Round

Posted on by Michael Clift

The most extensive area of turn-key businesses is franchises. There is a franchise for every industry in the world, and they are relatively easy to acquire and come with a pre-packaged, easy-to-assemble system. McDonald’s is a prime example. A 12-figure, 38,000 franchise example. 

There are a few things we are going to talk about:

  • 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 significant change was in the rights. During the “trade name” days, the franchise owner only had marketing rights; now, franchise owners have ownership rights to the entire business, including systems. This has allowed for a shift in focus from the quality and name recognition of the products carrying the business to sales techniques that carry the business.

The Franchise Prototype

The franchise prototypes allowed for the changes to be made that help today’s franchises 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 immediate 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 to ensure the business’s future success. So, a few standards are put into place that helps jump-start the process of opening a successful franchise.

Build a model of prospective customers/clients, suppliers, creditors and employees who will consistently offer high-quality work.

  1. Build a user-friendly model that individuals of any skill set can use.
  2. Build a defect-free model.
  3. Build a model with Operations Manuals.
  4. Build a model that will provide guaranteed, consistent results.
  5. Build a model that encompasses the same branding in colour, dress and facilities codes.

These are all ways the parent corporation makes sure their brand stays the same and in the front of the minds of customers. When 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 during our FREE test drive.