Starting a business can be difficult, even for experienced entrepreneurs. Many times, a concept that seems good to one person fails when presented to the market. That is a good part of why purchasing a franchise is often of interest.
If you have the financial backing necessary to start a franchise opportunity, you could benefit yourself and others, since many people find a tried-and-true business model is a great way to begin their journey to self-employment. However, if you have not started a franchise before, there are many things you will need to think about. As you begin developing your concept, you might be wise to consider the commonalities among successful franchises.
How do you develop a concept?
Franchises often succeed due their duplicate nature. Based on successful franchise models, if you want to start a franchise, you likely want to make sure your concept has:
- Adaptability to consumer demand
- Year-round quality sustainability
- A simple concept
You will probably notice those concepts among McDonald’s, Dunkin’ and Sonic – the top three franchises. However, keep in mind that even the number one franchisor is not without its trouble.
Why McDonald’s is experiencing disputes
Companywide, McDonald’s owns less than 5 percent of its 14,000 locations within the United States. While that may be a common strategy, it could give the impression that the company is out of touch with its day-to-day operations.
Most Americans would likely agree that McDonald’s concept is adaptable, sustainable and simple. Yet, the company faces franchisee concerns related to:
- Cash flow
- Increased complexity
- Aggressive remodeling
- Changes in management and menu options
- Relationships between corporate managers and franchise operators
McDonald’s is taking strides to meet their overarching company goals while addressing the concerns of their store owners, recognizing that their franchisees are business owners as well.
Develop your concept with franchisee success in mind
As you work on developing your concept, it would be good to consider the desires of those with whom you will be doing business. Keeping your franchisees in mind from the start may help you minimize franchise disputes as you work together to build a successful business for all involved.