Here’s what to look for as you do your due diligence on various franchise operations …

1. Weekly email updates

Does the franchisor include new marketing, proposed training, changes to standard documentation, planned events?

2. Regularly scheduled liaison visits by performance coaches

From an annual meeting to review and establish business plans, to catch-ups when financial reporting shows a downturn, to monthly phone calls. This program catches problems early and establishes a relationship of trust between the franchisee and performance coach. 

3. An intensive care program for franchisees

What happens to franchisees who end up facing business or personal difficulties? Is there a support plan in place?

4. Effective head office communication

Are there phone calls or emails from in-house experts in marketing or human resources, for instance, to talk about new initiatives or changes to processes?

5. Brand pride

Conferences and awards nights can help create franchisees who are proud of the brand.

6. Tech tools

A franchisor utilising communication technology such as Zoom, Hangout and video conferencing to hold forums and provide avenues for open dialogue.

6. Over delivering, under-promising

Talk to existing franchisees to find out if they receive the high level of support promised by the franchisor. For instance, if a new operations manual is scheduled, has it been delivered? When you are in the discussion phase, does the franchisor go over your proposed finances to make sure they are realistic? 

7. A strong feedback process

Ask your franchisor, and the franchisees too, how feedback is garnered, and how the business responds to the influencers among the franchisees.

8. Transparency

Transparency between franchisor and franchisee is crucial. How often does the franchisor share his or her vision with franchisees? Information about marketing funds, adopting innovative practices and adhering to benchmarking are all things that can ruffle feathers if they are not appropriately communicated. 

9. Skilled team leaders

Someone who has succeeded in the industry isn’t always a great choice as a mentor and motivator so it’s worth finding out what your potential franchisor looks for in experience and personality when recruiting support staff.

10. Problem solving

What do franchisees in the business think about the corporate team? Do they listen and not judge? Do they act and solve problems?

Franchising is often juggling diverse personalities, fluctuating marketplaces and products. But strong systems, two-way communication and an agile, flexible approach can help build success stories.