13 November 2014
Category:
Franchising
Comments: Comments Off on The Business Concept and Structure Consideration in Creating a Franchise

The Business Concept and Structure Consideration in Creating a Franchise

Whether you have an existing business or simply have the idea for one, it is important to know what qualities are needed in making a decision to use franchising as a growth strategy.

We are going to look the first of three general areas in assessing if your business can be franchised: Business Concept and Structure.

The Business Concept and Structure

What is one of the most overestimated necessities for franchising? A great concept.

What? You are asking. Well, consider that some of the most successful franchises in history are McDonald’s, Subway, Holiday Inn, Midas, and Service Master.

Each of these were not the first to market, they had predecessors. Their basic concepts were typical.

What is the second most overrated requirement in franchising? A superior quality product.

Consider McDonald’s hamburgers. They are not typically voted highest quality, often being picked behind Burger King and Wendy’s. Yet they control nearly 50 percent of the hamburger market more than doubling their two biggest competitors.

Before you go all in to start your franchising because you feel that you have a great concept or a tremendous product, look at what those successful companies do. What is the secret if their concept is not unique or their product superior?

The answer is the operating system. That is why McDonald’s has the biggest market share, they have the best operating system. Close to 97 percent of all Americans go into McDonald’s every year and 59 percent each month.

McDonald’s is at the top of the hill in franchising because they outperform the rest. Location, layout, consistency, product quality, speed of service, advertising, focus, and the fastest drive-thru all equal superior results.

If you have a great concept, it can definitely help. But even this is just the frosting on the cake. You need the cake first in order to be successful in franchising.

Do you have the cake, the frosting, or both? If you are interested in learning more about franchising your business or concept take the free “Is Your Company Franchiseable?” quiz or simply call 1-800-FRANCHISE (800.372.6244).

Look forward to parts two and three of this series, coming soon.

Comments are closed.