Succeed at the Basics when Reviewing Franchises for Sale
Andrew McKay| General Manager | Signwave
Franchises for sale differ in the degree of mentoring, guidance, and accountability that are provided to franchisees. Our Top Franchise research on franchising demonstrates that these factors play a major role in determining whether a franchise business is likely to be successful. Where present, they help ensure that franchisees stay focused on the day to day tasks that will best ensure the success of their businesses.
A professional with 25 years in the signage industry, Andrew McKay has been with Signwave Australia since 2007 and serves as the company’s General Manager. Andrew has dedicated himself to growing a sustainable network with coverage in all capital & major regional cities and providing the essential support necessary for excellent centre profitability.
Below, Andrew discusses how to investigate mentoring, guidance, and accountability systems in reviewing franchises for sale.
"In reviewing franchises for sale, prospective purchasers should look for franchisors that provide guidance to franchisees in identifying the most important areas of their business on which to focus their time, efforts and money."
In reviewing franchises for sale, prospective purchasers should look for franchisors that provide guidance to franchisees in identifying the most important areas of their business on which to focus their time, efforts, and money. They should also attempt to find franchisors which hold franchisees accountable -- even as they are getting dragged into the day to day workings of the business and becoming reactive rather than proactive in their operations.
To help you determine whether a franchisor will be able to provide this service in an effective manner, consider making the following enquiries:
- In franchises for sale by your company, what existing resources are available to help me be efficient in the basics of running my business?
- The franchisor that you are investigating should have resources in place to assist you and be able to clearly specify what is available in this regard. Beware of vague promises of assistance down the road and look for franchises for sale where the franchise company already has a significant set of resources in place.
- How effective are support staff at connecting the intellectual property and resources available through the franchise system to my particular scenario?
- If possible, speak with staff at the company and ask them to describe for you how the franchise system will successfully function in the context of your unique business situation. Do they have prior experience dealing with similarly situated franchisees? If so, it would be worth speaking with those franchisees to obtain additional information.
- If I become reactive to just running the day to day business, how persistent will support staff be in encouraging me to use the resources available to me?
Look for a franchisor with staff that will encourage you to use the franchise’s proven business systems and hold you firmly accountable for your performance. Staying on track with a proven business model is the most reliable way to reap successful results down the road.
- How will the franchisor, where applicable, help me to work on my business rather than just in it?
- You want a franchisor who will keep you attentive to the big picture as you deal with the daily essentials of running a business. Becoming profitable requires effective strategic as well as tactical operation!
- Will the franchisor benchmark my performance in key areas of my business against other franchisees, and give me suggestions on how I can improve?
- Often, a franchise for sale will provide some form of benchmarking system to assist franchisees in evaluating and improving upon their performance. Benchmarking is a crucial feature of most successful business operations.
- When I get familiar with the system and I’m running my business successfully how will the franchisor keep the basics of my business fresh and at the forefront of my mind and my staff members minds?
- A franchisor must be effective in communicating with franchisees how its business model operates, throughout the entire course of the franchisor/franchisee relationship. This should involve more than simply an initial training class. Investigate whether the franchisor in which you are interested offers its franchisees and their staff regular one-on-one training sessions, as well regular newsletters, seminars, and conferences.
Your franchisor’s mentoring, guidance, and accountability systems will remain with you long after your initial purchase of a franchise for sale, and can mean the difference between success and failure. It is well worth your time and effort to investigate these aspects of the franchise business before making the commitment to become a franchisee.