Call Today: (800) 976-4904
Call Today: (800) 976-4904
As a franchisor you have invested much time‚ effort and dedication into your franchise system and its profitability‚ but what is the key to a truly successful franchise system?
My take on the characteristics of a "successful franchise system" – Controlled and Sustainable Growth characterized by franchisee profitability‚ unit growth‚ sustainable royalty streams and properly managed litigation exposure.
In reviewing a recent article in the Franchise Update Magazine‚ the author‚ Steve Olson‚ reviews a study by Franchise Business Review (FBR) – a company specializing in independent franchisee satisfaction reports and ratings – and points out one of the many important factors to a successful franchise system: "Franchisee Satisfaction". While FBR may be a "franchisee advocate" with a point to prove‚ nevertheless‚ franchisors cannot ignore the fact that franchisee satisfaction / franchisee profitability is critical for a successful franchise system.
According to the FBR study "franchisee satisfaction" boosted sales an average of 600%. The study conducted by the FBR was done with franchise systems with a minimum of 50 franchise units. Studies show that happy franchisees create not only a better environment for existing franchisees but also creates a better opportunity for franchise growth.
If the start-up and established franchisor alike‚ recognition must be given to franchisee profitability and satisfaction. Franchise agreements‚ operations manuals and the numerous other legal and administrative documents that govern and define a franchise relationship must be geared toward a "firm" but‚ nevertheless‚ "balanced" relationship focused on overall franchise system growth and success.
Category: Start a Franchise
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your brand. Click on the button below or call us at (800) 976-4904.
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.
An attorney client relationship is not established by submitting this initial contact information.
