POVLITZ Inc | Business and Entrepreneur

As you go about this research, understand that successful franchisors have certain traits in common. Following are the traits that are most important. If you can find a franchisor that has these traits, you are headed in the right direction.

The Franchisor Supports the Franchisees

The best franchises are ones where the franchisor sees its relationship with the franchisees as a partnership. As Steve Reinemund, the former head of Pizza Hut, puts it, “Franchisees are only as successful as the parent company and the parent company is only as successful as the franchisees.”

Not only do such exceptional franchisors offer plenty of communication, opportunities for growth within the company, and help during hard times, they also offer lots of advice and training. A good example of this is Dunkin’ Donuts. To support new franchisees, it created Dunkin’ Donuts University.

There, franchisees and their personnel are invited to attend a six-week success program that teaches them everything from basic instructions on how to run the business to how to produce the products, deal with employees, and use equipment. It even offers advice on inventory control and accounting. Now that’s support.

The Franchisor Advertises a Lot

Not all franchises are dependent on advertising, but so many are that this is an important distinction. You want a system that does not skimp on advertising and promotions because that is where your customers will come from. Dunkin’ Donuts spends roughly $40 million a year on extensive advertising campaigns for TV and radio, and in newspapers across the country. Similarly, Pizza Hut spends about 7 percent of its gross sales on sales and marketing. That is the kind of advertising support you should be seeking.

The Franchisor Offers Uniformity, Tempered with Flexibility

One of the great strengths of franchising is that customers know what to expect when they walk into a well-known franchise. For example, that sort of uniformity is one of the main reasons people choose to eat at McDonald’s.

But by the same token, you want to avoid a franchisor that is so strict that it does not allow for creativity and some independence. The good franchisors know that some of the best ideas come from franchisees that try something new. One reason for buying a franchise is that you want the freedom to be your own boss. Avoid the paternal franchisor.

The Franchisor Is Committed to Customer Service

The great franchisors don’t just give lip service to customer service, they teach it to everyone in the organization, and live it on a daily basis. That’s critical, because if people are treated well at other outlets, that, in turn, gives your individual franchise a good name too. As the Pizza Hut chairman put it,

“We are committed to more than just good service, we are committed to providing legendary service.”

The Franchisor Changes with the Times

Tastes and values change. The last thing you want is to buy into a system that is stuck in the past, not realizing that its product or service needs to adapt to the times. The better franchise systems are constantly test marketing new ideas and new products in an effort to stay ahead of the competition.

Typically, a good franchisor will provide the following services on an ongoing basis:

• Local, regional, and national advertising, offering you related programs and materials

• Field support

• Updates to the operating manual and ongoing related training for you and your management team

• Some sort of advisory council

• Research and development of new products, services, and system enhancements

• Communication support—either an intranet, a members-only Web site, monthly newsletters, or some other method to keep you up to date

If the franchisor you are considering does not offer these sorts of things, it would behoove you to think twice.