How do I Create a Successful Franchise?

Ken Black

Creating a successful franchise is never easy, but there are things that can be done in order to make sure the concept gets off the ground, attracts a following and is ultimately prosperous. While there is never a guarantee of success with any business, there are things that can help promote that success. In order to build a successful franchise, it is necessary for the business owner to understand what those concepts are and repeat them continuously.

Successful franchises find a way to stand out from competition.
Successful franchises find a way to stand out from competition.

The first thing that is needed is to create a successful business model that is unique to what other things are being offered in the industry. Many may dispute this, noting that many fast food franchises offer nearly the same products, yet succeed. However, each different fast food business does something that appeals to the unique tastes of someone. One offers hamburgers prepared a different way than the others. Another may focus on freshness. The concept does not have to be totally unique, just unique enough to find a niche.

Selling cosmetics from an established brand is an example of a franchise.
Selling cosmetics from an established brand is an example of a franchise.

Once that is completed, you will need to establish credibility. Starting a new restaurant business and then trying to franchise that the very next year is likely not the way to create a successful franchise. Rather, the business must prove successful over a number of years, preferably in more than one location. This shows it has broad appeal in different markets, along with staying power. Possibly franchisees will want to know about sales, profit margins and other such data over a period of years.

Another feature of a successful franchise is the ease at which it can operate. For those very familiar with their businesses, it is easy to understand the operations. Others, who are not creating a system from scratch but learning from an already-existing system may have a much steeper learning curve. Therefore, the easier the business is to operate, the more chances there are to become a top franchise.

Once franchising has started, it is then ultimately up to the franchiser to make sure those with licenses are keeping up with the quality and consistency expected. Many franchises do not make their money from having the best quality products or a corner on a certain market. Rather, a successful franchise makes money by providing a satisfying product in a consistent manner. This consistency should never be overlooked and remains a big key, no matter what the product.

Also, creating a successful franchise means finding the right people who are able to execute a business model and be committed to it. This not only includes finding quality owners, but also finding a quality management team. Once a business starts to franchise, there will quickly come a time when it will need to hire additional administrators in order to make everything run smoothly. Without quality personnel at all positions, a successful franchise is hard to achieve.

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Discussion Comments


Buying into a franchise doesn't mean you'll automatically be a success.

I have a friend who bought into a very well-known franchise and he has worked his fingers to the bone for many years to finally become wealthy. It wasn't the easy way to go, that's for sure. And he has had to borrow so much money to get to the place where banks would even consider him for a loan. When he looks back, he wonders where he found the chutzpah to ask for that first loan. He had to believe in himself as well as the company.


Franchise companies with a tried-and-true business model can still fail. I've seen several "good" franchises open and close in less than a year.

Why would a successful brand fail?

Is it in the wrong place (too many competitive businesses within a small space) or have the wrong people been hired who aren't committed to excellence?

I've been thinking about this for a while after watching several companies fail in spaces that offered them the possibility to succeed in a big way.

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