Key Success Factors in Franchising Pre-Tested Model Franchising earns good results if done by organizations after creating a brand and testing. Retail organizations ought to look at establishing a Company-Owned and Company-Operated (COCO) model successfully before seeking expansion by taking the franchise route.
Transfer of Knowledge The franchisers, who provide their valuable inputs gained by their rich experience in retailing which includes training, store design and advertising and promotion, will produce good results.
Single Face to Customers The franchisee has to carry on his operations by playing the role of the principal brand. The store's image elements and product portfolio have to be carefully maintained. This also includes the upkeep of various standards in the areas of customer service, store presentation, operating processes and store personnel skills which will enable the transfer of the total brand experience to the customer. This seamless integration of the franchiser and the franchisee to present one single 'face' to the customer will ensure successful store operations.
Win-Win Situation The franchiser gets a partner in the franchise to establish his business and shares with the franchisee such tested technologies, product offerings and processes. Sharing investments and returns through mutually agreed means will enable the growth of both the franchiser and the franchisee, covering the risks at the same time
Ownership and Responsibility Franchisees fail when the franchise retail business is not owned by the franchisee. They often feel that the franchiser has the responsibility of ensuring success. So there must be clearly defined responsibilities for both franchiser and franchisee.
Review Regular reviews of performance and planning actions for implementation by both parties will ensure successful franchise operations. Besides, such periodical reviews will bring to light gaps in any area of deliverables on the part of either the franchisee or the franchiser that have to be dealt with urgently.