Franchise Expansion
It is not without reason that franchise expansion is considered to be very demanding and lengthy. Finding new franchise partners is a mammoth task with no end in sight. As a franchisor, you are faced with the challenge of maintaining constant contact with new franchise candidate prospects, ensuring a very prompt response to initial contact, and positioning yourself optimally during the first exchange. In doing so, you are not only in direct competition with other franchise systems, but also with the general activity of self-employment. Because potential franchisees who are still at the beginning of their decision-making process do in fact see disadvantages in franchising, not just advantages.
As a franchisor, you should also exercise a certain due diligence when selecting your franchisees and remain true to your own standards. After all, sustainable growth needs to be well prepared and may also entail slight changes within the system. As is well known, many roads lead to Rome and it was not built in a day. That is why the internal strategy of your expansion is of crucial importance. This strategy should be supported by all departments in your franchise system headquarters. If you manage to get all relevant departments on board when creating a franchise partner profile, a smooth on-boarding process later on will be much easier.
Three points are of central importance for developing your franchisee profile. First, develop a comprehensive requirements overview together with your team. It must be carefully prepared and transparent. Second, be open to ongoing adjustments and changes. And third, consistently adhere to your own guidelines and don't be afraid to say “no” to a potential franchisee whom you don't consider suitable after a thorough review.
Why is this important? With the right expansion strategy, you will reach your goals faster, more smoothly and ultimately more profitably. Because every compromise in the selection of your franchise partner, every hesitation in implementing your corporate identity and every location that turns out to be the wrong choice is a self-imposed stumbling block for your growth. In addition to the requirements profile, please also consider your gut feeling: is your candidate really a good fit for you and your company? Is there feedback from your team and perhaps also from other franchise partners who have already met the candidate?
In addition to creating guidelines and implementing them correctly, the quality of your expansion efforts with each individual franchise candidate is of central importance. How does your expansion team operate, how promptly do further developments take place during the getting-to-know-you process and how intensive is the pre-contractual support provided by your system headquarters? After all, not only do you, as the franchisor, screen seven prospective customers and have your own quality standards, but your potential franchisee also compares you with other providers. It is not always the best system that “wins” a new franchise partner, but the best offer.
Even with all the professionalism that your system headquarters demonstrates, you can't force your luck. Even the luck of concluding a new franchise partnership cannot be guaranteed in your expansion. In addition to striving for further contracts, do not forget the person with his or her livelihood who is behind this new contract. The better you get to know the person with all his or her abilities and needs, the more sustainable the acquisition process will be and the more it will pay off for both sides in the long term.
There is no single perfect way that applies to all franchise systems. With my professional support, you and I will find the distribution channel that best suits you and your business philosophy.
I would also be happy to support you in other areas of franchising, such as
Gründung, System-Check, Personalgewinnung, Management, Kommunikation.
