3 Tips for Successful Franchise Management

Did you know the one and two-year success rate for franchises is higher than that of independent businesses?

According to the Journal of Economics and Management Strategy, franchises are up to 8 percent more likely to succeed than businesses that follow the traditional model.

If you already own a franchise or you’re looking to buy one, there’s no doubt you’ve made a smart business decision.

However, just because franchises are more likely to succeed doesn’t mean success will come automatically. You still need to master franchise management basics and best practices.

In this article, we’re sharing expert tips on how to manage a franchise. Read on!

1. Choose the Right Franchise

If you’re looking to buy a franchise, it helps to know that prudent franchise management doesn’t start once you’ve bought it and set up shop. It starts right from when you’re shopping for a franchise. The right franchise will make your management work a lot easier.

As such, do sufficient research. Don’t choose a franchise just because it’s a global brand that generates billions of dollars in sales every year.

Look at your local market and the nature of the competition. We’d all want to own a Starbucks franchise, for example, but it might not do well if you set it up in a location that’s saturated with top coffee shop brands.

2. If It Ain’t Broke…

The whole premise of buying a franchise instead of starting a business from scratch is to follow a proven model.

When you own a franchise, the franchiser will give you a lot of support, including management. They want your shop to succeed because your success contributes to the overall performance of the brand.

In general, follow the franchiser’s management strategy. It has worked for them over the years, there’s no reason it shouldn’t work for you.

Don’t be like the franchise owners who decide to tweak things here and there. Well, there’s a chance tweaking some things, especially from the management side of things, can boost performance, but that’s a risk you shouldn’t be taking. If it ain’t broke, don’t fix it.

3. Focus on Managing, or Hire a Specialist Manager

It’s very unlikely that a franchise will start out as a one-man band. You’ll have a few employees to help with the operations.

Be careful not to run on a limited workforce because it means you’ll be forced to wear multiple hats. One moment you’re looking for franchise leads to boost your sales, the next you’re handling a customer complaint.

This isn’t a good practice. As the franchise manager, your hand should be on one thing: managing. Leave marketing or other tasks to the specialists.

If you aren’t a good or experienced manager, don’t try learning on the job. Running a business can be unforgiving and there’s no room to make mistakes. It’s best to hire an experienced manager to lead the franchise.

Successful Franchise Management Isn’t Rocket Science

Expert franchise management is the key to owning a successful franchise. Follow the tips fleshed out above and you’ll have a strong management head start.

That’s not all there’s to learn about running a franchise. Keep reading our blog for more helpful advice.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.