6 Traits of a Lucrative Franchise
Starting a franchise is an exciting prospect. You’ll be able to enjoy the popularity of an established brand and support from the parent company. However, while being a franchisee is less risky than starting your own brand new business, there are still some steps you need to take to be as profitable as possible. Not all franchises are created equal. If you want to have the best franchise business, it should have these characteristics.
- A Dedicated Franchisor
In order for you to operate a successful franchise, you’ll need a franchisor who is willing to be helpful throughout the whole process. For example, if you start a franchise through Best in Class Education Center, you’ll get support in the following areas:
- Pre-Opening Development: Site selection, demographic research, and construction.
- Training: Sales, human resources, software, operations, live classroom observation, and curriculum.
- Advertising and Marketing: Custom ads, social media management, local programs, public relations, and national campaign exposure.
- Consistent Support: Staff training, recruitment assistance, monthly financial reviews, and advice on best franchise practices.
The more your franchisor is willing to help you, the more success you will experience.
- A Good Location
One of the most important indicators of a franchise’s success is where it’s located. For instance, for an education center like Best in Class, you’d want to be near a neighborhood with a lot of families. Keep in mind that anything that blocks visibility or easy access to your franchise may significantly impact your profit margin. The most lucrative franchise will be one in a clean and safe area of town that people can easily find.
- A Good Track Record
While some ups and downs are normal for every business, you want to open a franchise with a parent company that has consistent growth. When you choose a parent company that has success with other franchises, it’s a good sign your franchise will succeed too.
- The Right Price
When you’re looking for a franchise for sale, you want one that’s priced correctly. Remember that this doesn’t always necessarily mean the most inexpensive franchise will be the most successful. A franchise with a true potential for profit may cost a little more outright, but it will give you a greater return on investment. Don’t be scared of paying more for the right franchise to yield a better profit.
- No Legal Complications
You don’t want to get involved with a parent company that has consistent, ongoing litigation. While almost every business will face a lawsuit every now and then, it’s a bad sign if it’s a deep-rooted issue. Lawsuits will cut deeply into your profits. Just do some research beforehand to ensure the franchisor isn’t dealing with legal entanglements.
- Little Competition
While it’s impossible to erase every competitor, you’ll be better off without much competition in your particular location. However, just because there’s a similar company near where you want to open yours doesn’t necessarily mean you’ll fail. You just want to conduct some market research to find out if you’ll be able to succeed without saturation.Back