Recently Franchise Attorney Charles Internicola blogged about how franchise success for both franchisors and franchisees alike depends on the franchisor's mindset.
In his blog entry "The Franchisors Mindset: Some Factors That Franchisors and Franchisees Should Consider" Charles Internicola discusses how there are three critical points that must be considered in regards to a franchise system if you are a franchisee looking to purchase a franchise or if you are a franchisor looking to start a franchise or expand a franchise.
- Focus on Franchise Training – A franchise that does not offer proper training to their franchisees will cause both the franchisee and‚ ultimately‚ the franchisor to fail due to a lack of understanding of the overall goal of the franchise and how to obtain it.
- Franchise Growth Must Be Planned and Controlled – A franchise that grows "too fast" in the sense that they do not offer proper training‚ resources or support will more than likely "crash and burn" eventually. These type of fast growing franchises may seem like a "hot franchise" at the time of purchase but more than being "hot" the franchise needs to be stable and offer room for growth at a controlled and planned pace which will ensure both the franchisee and franchisor are on the same page.
- Product Development Must Be Ongoing – A franchise that does not update and re-invent or continuously develop their product may eventually cause the franchise to fail. There should be a constant effort coming from the franchisor to develop the franchise product which will trickle down success to the franchisee and ultimately cause the franchise system to experience more success.
Ultimately these key steps will help a franchise system to succeed but whether you are a franchisee or a franchisor you should also take into consideration the legal aspect of a franchise system in order to ensure your franchise system is set up properly for success and not for failure. A franchise system whether from the prospective a franchisee or a franchisor should always be evaluated by an experienced franchise lawyer.