When you invest in a franchise, you’re investing in a “proven business model.” But what exactly does that mean, and does every franchise have it? Can it be assumed that a well-established franchise has a proven business model? It’s not always that simple, and not all franchises are created equal. We examine the elements that form a proven business model and set franchise owners up for their best chance at success.
Proven Track Record with Years of Growth and Success
A franchise with a proven business model has a business plan that has been proven time and again. The franchisor can show years of growth and the potential of your investment. Having years of experience typically means the franchise has worked out any kinks in the system so that you can replicate the success as quickly as possible. Much of this information will be revealed during the due diligence process and is available in the Franchise Disclosure Document.
Brand Success and Recognition
A strong brand presence and recognition as an industry leader is a characteristic of a franchise with a proven business model. This status is typically attached to established franchises and can bring customers and profits more quickly. But younger, emerging franchises should not be discounted in this area. If the emerging franchise has strong brand guidelines, a customer-centric approach and differentiates themselves well from the competition, they could be a strong brand in the making.
A Plan and Goals for a Sustainable Future
A vision, plan and goals keep a franchise focused so they can see ever greater success in the future. They have a comprehensive business and marketing plan, complete with a system and tools. This allows the franchise to keep all involved focused and accountable to execute on the goals and fulfill the vision. Successful franchises ensure that relevant information is communicated on a consistent basis, typically weekly, monthly or quarterly. After all, change is constant, and franchises have to be responsive and goals tweaked to stay current.
Comprehensive Training and Support
One thing is for certain: A franchise with a proven business model must be committed to support. Support can include materials, onboarding and training, and ongoing guidance. A knowledgeable corporate staff that is responsive and provides answers quickly is essential. A franchise with a proven system has that next level of support to depend on when challenging situations arise. It has the infrastructure in place to set goals, create plans and develop strategies with franchise owners.
A Positive Company Culture
While growth and success are the tangible outcome of a proven business model, the franchise’s culture is the all-important “behind the scenes” element. A positive company culture develops the brand and lays the foundation for the franchisor-franchisee relationship. When values and beliefs align, commitment to the goals takes hold and success begins.
Looking for a Franchise with a Proven Business Model? You’ve Found One!
BirthdayPak not only has a proven business model, but a unique one! We send one million birthday wishes annually to women across the country through a one-of a kind gifting program. In turn, local businesses see increased sales with new and repeat business. This franchise opportunity opens up a path to success for franchise owners.
BirthdayPak has a proven business model and is available for expansion in these high-potential markets. We’re looking for sales-driven entrepreneurs who are passionate and ready to partner with us for success. For more information, contact us at 1-888-680-7554 or schedule a call.