Without a doubt, the franchise industry offers a great opportunity to earn a living. According to the International Franchise Association (IFA), it was projected that the industry would be responsible for 3% of the nation’s overall economy in 2022 tallying $501 billion. Franchises also make a major contribution to employment opportunities. In the same report by the IFA, it was projected that franchises were responsible for employing roughly 8,449,162 people in 2022.
For individuals who own a franchise, there are likely two main reasons they decided to invest in one: to be their own boss and to generate wealth for themselves and their families. Thanks to resources provided by franchisors, it is easier to accomplish both of those goals with hard work and determination. The franchisor provides you with resources, branding, and leadership that has proven successful, but it’s up to the individual franchise owner to maximize the resources and build their local business.
When considering the return on investment for a franchise, some things to consider to help you maximize the franchise model: Focus on customer service, embracing technology and building a strong relationship with the franchisor.
Focus on customer service
Taking care of customers is a great way to generate repeat and referral business: having excellent customer service and creating a customer experience that is second to none. No one raves about average service, and most people will only leave a review if the service was excellent or terrible. Excellent customer service can give you a competitive advantage. At AlphaGraphics, our franchisees key in on customer service and develop relationships with our clients. We treat our clients like business partners, and that helps us stand out. For example, during the early days of the COVID-19 pandemic, many of our franchisees pivoted to printed yard signs for special events because they were in high demand with our customer base. This is an example of focusing on customer service and demand. Simply listening to the customer and delivering on their demands can ensure they come back or recommend you to a friend or other business partner.
Embrace technology solutions
In today’s world, finding ways to utilize technology is a must. Customers want services on-demand with little delay. Technology helps franchisees provide those services with relative ease. Amazon provides a perfect example of this. Customers can shop online, order their items and have them delivered with the click of a button. For franchisees to generate more revenue, they must provide solutions that meet the expectations of their customers. Online ordering or e-commerce solutions make life easier for the customer and franchisee alike. At AlphaGraphics, we are in the final stages of launching an entirely new e-commerce experience for our franchisees and customers.
Build strong relationships with the franchisor
The partnership between a franchisee and a franchisor is like a marriage. It should be approached with a long-term view in mind and based on trust and respect. Both entities have something to gain if the relationship is fruitful, but they both also have something to lose if it’s not. The stronger the relationship between the franchisee and franchisor, the greater the return on investment. Communication is one of the keys to building a strong relationship. It is important for the leadership team to be available if the franchisee has a question or concern. If the franchise owner isn’t capable of communicating with the franchisor, it can contribute to a negative business culture. In addition, open communication helps build the family-like atmosphere that many franchisees look for when choosing a franchise system.
Franchise owners have an excellent opportunity to reap the financial benefits of joining a franchise. Of course, this doesn’t come without hard work, dedication and determination. In most cases, that means long days until you’ve established your business in the community and developed a firm customer base. To get the most out of your franchise, you have to be willing to put in the work to develop excellent customer service and build a strong relationship with your franchisor. In a business climate that is ever-changing, excelling in these areas will go a long way in maximizing your business opportunities as a franchisee.
Written by Ryan Farris.
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