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The Recipe of a Good Franchise

Choosing to invest in a franchise business is one of the biggest steps you will take in your lifetime. Just as you know what you like when looking for a romantic partner, or what facilities you want when buying a new home it’s vital to know what ingredients to look for in the right franchise for you. [caption id="" align="aligncenter" width="350" caption="Mamma Mia!"]Mamma Mia![/caption] The brand: It is more reassuring to commit to a brand that is widely known and which reputation is not in the process of being built. It is a bit like when you order a Margherita. When your plate comes, no surprises, you know what to expect on your pizza. But this does not mean that the least famous pizzas on the menu are not appetizing. The same goes for lesser-known franchises: they might be full of potential. For the latter, what matters is that the brand and the logo have to be catching and attractive and have to reflect the product or service of a franchise.

The concept: A concept which has proved itself may be less risky – when you invest money in it – than a new concept. However, some new concepts are worth franchising and selling worldwide. Let’s take the example of the Hawaiian pizza. According to the Pizza Marketing Quaterly, it’s the favourite pizza of the Australian. Pineapples on a pizza! This is something that would have shocked the most famous Italian pizza chefs of the beginning of the 20th century. The concept has to be of good quality and has to be adapted to the needs of the market. You cannot put ham on pizzas sold in Muslim countries and you should always have a vegetarian pizza on your menu.

The type of industry: It is hard to choose a particular industry. Catering is an industry that has always worked well as far as franchising is concerned, but this doesn’t mean that all the franchised restaurants are successful. Most importantly, you have to choose an industry that you are interested in. You wouldn’t put anchovies on your pizza if you don’t like them!

The know-how: Generally passed on to the franchisee through training and the franchise manual. The know-how can make a difference between two franchises of the same industry. A pizzeria with a wooden oven will have a better reputation than a pizzeria with a regular oven. It is therefore essential this expert knowledge is passed down to the franchisee.

Experience: All of us can’t make good pizza dough, especially not without practice and experience. This is however not a handicap for a franchise to be new on the market. In this case, the experience of the franchisor in his field matters.

The size: Pizzas aren’t judged by their size, but by their taste. Little pizza does not mean bad pizza. The same goes for franchises: a small franchise does not necessarily mean it is a bad franchise.  It’s more important to focus on the development plans of a franchisor. It is better to invest in a small franchise with a big growth potential rather than in a non-viable big franchise.

The geographical location: A pizzeria will not be very profitable if it is surrounded by pizzerias that have been there longer and sell better pizza. The same goes for your franchise unit: you will not be able to develop it if you have too many competitors in your area. Make sure that the location of your franchise unit is adapted to the product or the service that you sell. Try to sell pizzas to a Massai tribe, and you might not be very successful.

Communication and transparency: Before buying a pizza, you want to know what its ingredients are. The same goes for franchises: you should want to know a maximum about the franchise you are interested in before buying a unit. It should not be a problem to get information from a good franchise.

Franchisees: The cheese on the pizza: committed franchisees! The biggest franchises would not be as famous without the hard work of its franchisees. All good franchises should have in their team hard-working committed franchisees ready to get their hands dirty.

Ingredients of the Franchise Direct special: tomato sauce, cheese, mushrooms, olives, artichokes, chorizo, ham, corn and seasoning oil.

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