A sound franchise model is essential to successful franchising
A successful franchise model is the most important element in establishing a franchise system. In terms of legal requirements, a model is not needed. But from a practical point of view, it is nearly impossible to succeed without a proven system in place. That means a process that is well oiled, proven, logical, and understandable. In other words, proof that the franchise actually works
The central mission of a franchisor is to continuously work their system and keep it attractive to both its patrons and its franchisees. That mission simply cannot be accomplished without the prototype.
The franchise cycle rises or falls based on the quality of the model created and implemented by an entrepreneur seeking to grow their business. But franchising is not the only industry that demands good systems. Franchising is just one of many channels of distribution. Affiliate programs, distributorships, or company-owned outlets are alternatives to franchising and each method or channel of distribution requires that the model or concept be proven in order to grow. In the case of franchising a business, the franchisor builds the network by using OPM (other people’s money) and other people’s time and management. Obviously, if people are to invest their money in a business opportunity, they want to witness proof of the it’s viability. So, a successful model is a must.
The model as a training instrument
Next in the cycle comes the training period. The franchisor must provide adequate training in the use of the concept. Often, the best training environment is an actual operating unit, or it could be a franchised unit. True, most “book learning” in franchising is classroom-based, but on-the-job learning is readily available in the field. This is accomplished in the most modern facility that the franchisor can provide.
Moving forward in the cycle you find franchise support. This very critical area of franchising demands that franchise support staff supply their consulting services with a focus on the latest, proven techniques. In order to provide such services, we simply take a look at the prime franchisor’s role. That role is defined above — namely, ever grooming the system.
Would we recommend purchasing a franchise without a proven model? NEVER.