The most significant area of turn-key businesses is franchises. There is a franchise for every industry in the world, and they are reasonably easy to acquire and come with practically a pop out-of-the-box pre-assembled system. McDonald’s is a prime example, a $40 billion, 28,707 strong example.
This is why all business owners must create their business model with the idea of franchising it, regardless of whether they chose to. Franchises are the epitome of optimization and efficiency.
- “I put the hamburger on the assembly line.”-Ray Kroc.
There are a few things we are going to talk about:
- Business Format Franchise
- The Franchise Prototype
- Franchise Prototype Standards
Business Format Franchise
The business format franchise came from an earlier model call the “trade name” franchise. The significant change was in the rights. During the “trade name” days, the franchise owner only had marketing rights. Now franchise owners have ownership rights to the entire business, including systems. This has allowed for a shift in focus to go from the quality and name recognition of the products carrying the company to sales techniques that move the business.
The Franchise Prototype
The franchise prototypes allowed for the changes to be made that help today’s franchises shine with the techniques developed by the owners instead of the corporation. This can make a significant difference in the franchise’s success as the owner can custom tailor their marketing and promotions to their local target customers’ immediate needs.
Franchise Prototype Standards
The above being said, no one in their right mind would purchase a franchise if the parent company didn’t have a solid plan of action set up to ensure the business’s future success. So, a few standards are put into place that help jump-start opening a successful franchise.
Build a model of prospective customers/clients, suppliers, creditors, and employees who will consistently offer high-quality work.
- Build a user-friendly model that individuals of any skill set can use.
- Build a defect-free model.
- Build a model with Operations Manuals.
- Build a model that will provide guaranteed, consistent results.
- Build a model that encompasses the same branding in color, dress, and facilities codes.
- Build a model that has detailed training and development plan.
- Build a model that you would be proud of.
When building your business model, remember to envision franchises doting the landscape.
- “When I saw [Maurice and Richard McDonald’s restaurant in San Bernardino, Calif.] working that day in 1954, I felt like some latter-day Newton who’d just had an Idaho potato caromed off his skull. That night in my motel room, I did a lot of heavy thinking about what I’d seen during the day. Visions of McDonald’s restaurants dotting crossroads all over the country paraded through my brain.” -Ray Kroc.
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If you’re interested in adding an extra $100,000 to your bottom-line revenue over the next 12 months… without selling more time for money… then I can help you.