From McDonald’s, KFC, Planet Fitness, and The UPS Store to iCode School, these companies have successfully established their brands as authorities across the US and even globally. Most of their franchises will do well regardless of their location in the world, which has seen many people want to invest in them. But what makes these franchises far more profitable than others?
Here are 11 characteristics these top franchises share:
- A strong brand image/identity
When you think of some of the world’s best-known franchises, in most cases, what comes to mind is their logo or a particular color associated with the brand. This is part of what makes them memorable.
They have built a strong brand identity that resonates with customers on an emotional level, whether through style, quality, or reputation, while also being clear about the company’s values and mission statement. Hence, people know exactly what they’re getting into when they join their “club.”
- An effective marketing strategy
Most top franchises utilize conventional and nontraditional marketing techniques to reach potential customers. This includes billboards at busy intersections, social media marketing, flyers, and influencer marketing.
- A point of difference
They provide distinctive products/services that separate them from the others and make them “needed.” For instance, iCode School teaches kids to code through hands-on classroom-based STEM education. They incorporate vital soft skills through collaborative projects that challenge students to think in ways traditional education fails them.
- A unique selling proposition (USP)
A USP that defines the brand, its value proposition, and how it differentiates itself from other brands in its category helps a franchise stand out.
- Clear, focused business plan
The most successful and strong franchises have clear business plans and goals. They make a point of developing their own business plans and communicating them to their franchisees, so everyone is on the same page.
- Great franchisor support
Franchisor support is a key ingredient for any successful franchise. Franchises that provide training and operational assistance, as well as marketing and operational support to the franchisee, tend to perform much better in terms of sales and even brand growth.
- Great distribution channels for products and services
Great distribution channels are a common trait with all top global franchises, especially those in the fast-food industry (KFC, McDonald’s). They have invested in their distribution channels, from how the product moves from the manufacturer to the time it gets to the consumer.
- Great financial controls
When you look at the top franchises across different industries, all of them have great financial controls. You need to know how much money you are making and how much money you are spending to avoid going out of business.
- Excellent inventory control systems
Inventory control systems are important for any business but are especially crucial for franchises. A franchisee needs to be able to track their business’ inventory and ensure that it’s being used effectively. This also helps you to know how much stock to order at any given time.
- Excellent customer service
Top franchises invest in good customer service, helping them build loyalty and trust with their customers.
- Reasonable fees
Lastly, when you look at the top franchises worldwide, they have struck the right balance between their financial interests and that of their franchisees. They understand that franchisees contribute to the growth and success of the company and support their franchisees all the way, ensuring they do not overcharge.