SA Franchise Warehouse

Average vs Good in the world of franchising

Tanya Spence

For anyone wanting to escape the corporate world and the highly competitive job market in favour of running their own business, franchising is an exciting and feasible option. However, National Operations Manager for Sandwich Baron, Tanya Spence, cautions those considering this tried and tested business model to still do their homework well and make sure they are well informed about behaviours in the world of franchising that can make the difference between running a really good franchise or merely an average one. 

Franchising opportunities are on the increase all over the world, primarily because this business model is widely believed to be one of the safest and most risk-free ways to start a business and make a long term success of it. But be careful not to expect to buy a “business in a box”, believing that all you have to do is open the doors and customers will come, and that the business will run itself. The difference between establishing a good and an average franchise depends on the amount of hard work and energy you are prepared to put in to get your new business off the ground and make it grow. 

It’s been proven that good franchisees run their own business, while average franchisees prefer to leave the running of their stores to managers. Statistics actually prove that owners who take a hands-on approach are more likely to succeed in the franchise business than those who delegate the day-to-day running of the store to a manager. Owner-operated franchises allow greater personal control over the operation of the business while it's growing, enabling you to keep an eye on quality, safety and the performance of your staff.

Linked to this point, good franchisees have strong leadership skills, while average franchisees tend to lag in the leadership department. To be the best, you must be the type of person who is able to take charge in a work setting and feel comfortable with accepting the responsibility that comes with making decisions and dealing with the results of those decisions. You have to set standards high, make sure your staff meet these standards and commit to continual improvement. Be accountable and ensure other people are also held accountable for their actions and performance.

To run any business successfully, it is vital to have a good grasp of financial matters. Good franchisees are passionate about the franchise’s products or services, and are able to understand and manage the business’ finances. Average franchisees have poor financial control over their businesses, and continually have inaccurate record keeping, inadequate debtor management, bad cash flow or high cash use. Good franchisees also know that it’s okay to bring an experienced, professional business adviser on board to support the business in reaching its full potential, and they know they must always have a finger on the financial pulse of the business.

Finally, good franchisees know that the performance of their staff can make or break the business. They know they need to invest time and effort into building a team that reflects their high standards and business aspirations. In an average franchise, team members are not all that sure exactly what is required of them to successfully run the business. They don’t really have a proper understanding of their own roles and how each one contributes to the success of the whole operation. Good franchisees know that ongoing training of staff is their responsibility. They offer praise and recognition when goals are met and projects are completed successfully, understanding that this is a great motivator for employees to continue to perform well. And, if an employee's performance needs improvement, instead of berating them, a good franchisee provides constructive and positive feedback and additional training if necessary.

Running a good franchise doesn't just happen. It’s all about making smart choices every step of the way, while identifying and taking steps to avoid the pitfalls. This could make all the difference to your bottom line and whether your franchise turns out to be a dynamic success story or a mediocre concern.

In the end, it comes down to the franchisee’s determination to make their business better than average. While best practice advocates what works well, if the franchisee does not choose to be better or be the best, they won’t be. The only way to grow a secure investment is to be securely invested in it.