Thinking Like a Franchisor | Franchise Law Blog

The “Franchisor’s Mindset”: Some Factors that Franchisors and Franchisees Should Consider


For both (a) franchisees deciding on the right franchise investment; and (b) franchisors establishing a solid franchise system, the right mindset is critical. That is, it is critical that your understanding of franchise opportunities and franchise systems go beyond the generalized and involve a detailed understanding and evaluation of the overall mindset that a successful franchisor brings to the table. Reflecting on some of the critical points that my clients have raised over the years, the following is my take on some of the factors that you (whether a prospective franchisee or franchisor) should be considering in evaluating a franchisor’s mindset:

Focus on Franchisee Training is Paramount 

Smart franchisors, that is franchisors that are focused on the long-term are focused franchisee training. That is, the long-term road to franchise growth and the development of a valuable franchise system must be premised on the consistent development and training of its franchisees and not just a quick sale of a franchise unit. Is the franchisor focused on evaluating franchisee qualifications and and developing systems for for both initial and on-going training?

Franchise Growth Must Be Planned and Controlled 

Somewhat related toward a franchisor’s training mindset is the franchisors mindset toward growth. Franchise systems that grow to fast (i.e., at a rate that is not readily supported by expanded training, system development, and market evaluation) are bound to fail. Is the franchisor focused on controlled growth and growth that takes place only after developing the necessary support and brand development systems?

Product Development Must Be Ongoing

One of the primary advantages of becoming a franchisee (in the right franchise system) is leveraging off of the franchisors centralized efforts in constantly developing, refining and improving the products and services that its franchisees offer. Product and brand development is a constant and on-going process and is critical to the continuing success of a franchise system. Is the franchisor focused on systems and a  process that continuously reinforces and refines its brand and the products and services offered to its customers.

There are many, many more points and steps that successful franchisors follow. However, key to every franchise is a franchisor and franchise management team that approaches each day with a mindset focused on controlled growth, franchisee development, and product development.

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