The key to success for franchisee depends on a host of factors like the franchise model, the demand of the product and brand, performance of the franchisee and economic stability. Successful businessmen and successful franchisees share a number of similarities. Both of them have the ability to see through the time – to reflect on the past, make desired changes in the present and plan for the future.
For an established brand and one that has quite a demand in the customer base, success is almost guaranteed. For brands that have just come into existence or are on the shelf for relatively smaller period of time, the franchisee has to display real skills and effort to emerge as successful franchisee.
Greed and impatience are two common evils that can distract the franchisee and topple the entire business plan. We will give you one good example from a successful franchisee, who operates a mobile technology training institute.
The franchisee established the institute some six years ago, when telecom was growing and expanding in all directions in this country. There was a great demand and the only question was to tap it off.
The franchise bought by the franchisee demanded an optimal fee and the franchisee could have earned great profits by siphoning the returns. Instead of milking the opportunity, the franchisee kept the fee structure low and built the reputation of his own services. The lower fee structure promoted the institute and till this time trainees from far off places seek admission because of the popularity and credibility of services. That is just one case, and franchisee owners since years have been keenly looking at long term profits.
Some franchisee owners have come up with great formulas from time to time. Many service providers offer rebates and value added services, but after consulting and approval of the franchisors. Some of these minor changes in the business model are meant to customize to the customer base. It is not necessary that the franchisee will provide only as much as is agreed with the franchisor.
In franchising the chances of survival in the competitive market are almost improved immediately if the franchisee personally endorses the brand and markets it in his sphere of influence. This makes the franchisee more committed and positive towards the brand.