For master franchisees, selecting the right brand partner is a crucial decision. A.J. Titus offers 21 qualities a master franchisee should seek in a brand
Being a master franchisee can be an extremely lucrative and amazing experience. The best relationships in this regard are always mutual; a brand develops a name and systems to be successful and a master partner takes those brands and systems to another level in their respective country. Brands look far and wide for great master partners, but master partners must be just as choosy when choosing the right brand for them. Here are 21 qualities that master franchisees should seek in a brand!
Longevity
Franchise systems come and go with the days. There are thousands of active franchisors in the world, from hair care to sub-businesses and everything in between! When looking at a brand to invest in, the parent company should have a history of franchising, and franchising a successful brand.
Training
Being a master partner is different from being a franchisee and training needs to mimic that. How often does the franchisor share systems that they use in their country? How often do they show you what is ‘behind the curtain’?
Support system
How are you going to be supported by the franchisor? How are your franchisees going to be supported by the franchisor? Where does the line stop?
Company structure
Is the franchisor a publicly traded company or privately held? Privately held businesses tend to care more about support services, training, the future and the franchisee as they are more about the relationship than the bottom line. Publicly traded companies typically have a larger reach and more investment dollars to spend.
Strong brand name
Does your country have a concept like this? Is there a demand for a strong brand name to come into the market? Has anyone in your country heard of the brand?
History of company
When looking at a franchise company, the story of how the company was started and the motivation behind it is very important. It will be used in selling franchises and shows what type of franchisor they will be.
Total staff numbers
Knowing the total number of employees is key to gauging support. Where are they based and how often will they travel?
Investment level
Investment level is not only a monetary value, but a time investment as well. How will the franchisor invest in you over time?
Ongoing investment level
What will be the ongoing investment level from the franchisor? What other things like an expo/conference, incentive for high producing franchisees, continuing education/training, database, should franchisees expect to see in the years following their initial investment?
Passion
This is an intangible, but are the leaders of your franchisor passionate? Do they love what they do, and do you want to follow them? Will your franchise owners want to follow them?
Succession Plan
Does the leadership team of the franchisor have a succession plan? Will they just sell or flip it to a private equity group? Is it family owned?
Technology
What technology do they bring to the table? Website, application, point of sale software, proprietary software? What can you bring to your country?
Future growth
What are the franchisor’s future growth plans? Are they diversifying to fortify, or are they choosing to stand pat?
What other countries are successful?
What other countries are successful within the system and who can you talk to? Are they successful in a country similar to yours?
Total franchisees internationally
Is this an American brand or an international brand? Understand the total number of franchisees that have invested in the brand internationally.
Item 19
Ask for the Franchise Disclosure Document from the USA and look at Item 19. Are the franchise owners healthy? Do they even have an item 19?
Mentor program
Has the franchisor established a mentor program for other franchisees to partake in? This can be huge if it is already established.
Supply chain internationally
What vendors are needed internationally? Has the franchisor already established those relationships or will they need to be set up? Is there any reconnaissance to help you find and negotiate with good vendors?
Growth of country
What does the franchisor think about the future of your country? How many units can they see in a country your size? What are the economic opportunities there?
Flexibility
The ability for the master partner to localize and change the model to an extent is important in this relationship. Strong business partners understand when to say yes and when to say no.
True partnership mentality
In the end, this is a partnership. Picking the right brand is important but picking the right franchisor to partner with is the most important thing. You need to be comfortable with the franchisor and treat them as if they are your partner. You will be joined at the hip from now on and it could be a great relationship or a poor one! Be sure to select a franchisor that shares in your values and ambitions.
ABOUT THE AUTHOR
A.J. Titus has a passion for franchising that few share. As President of Signarama, the world’s leading sign and graphics franchise, A.J. strives to constantly expand the brand through the United States and around the world while developing ways to help current franchise owners expand their business. Visit www.signaramafranchise.com to learn more.
