If the world stops, does the franchise keep moving forward?

There's no crystal ball that can tell you the future of a business. If there were, we'd all be millionaires!

If the world stops

There’s no crystal ball that can tell you the future of a business. If there were, we’d all be millionaires! But whilst you can never know with complete certainty, there are some telling signs to look out for in any brand that will give you an indication as to how likely and able it is to overcome any hurdles. Setbacks might include a recession, a downturn in the industry, detrimental changes to legislation or, as we’re currently experiencing, a national health crisis. Franchisors who think ahead, have contingency and crisis plans in place aren’t pessimistic, they’re proactive!  

The first part of your examination should be into the training. As well as equipping you with the know-how to run your business, it needs to indicate what you’ll receive during challenging times too.   A comprehensive training programme will guide you through necessary steps to prepare for what you might encounter. Are you reassured that you can survive almost anything? Are resources accessible to you on request? On a similar vein, the support you’re given needs to give you that same level of assurance. How responsive are the head office staff? Can you reach out at any time to propose a question? Always place these aspects under extreme scrutiny to ensure they will support your endeavours and guidance is available to you, no matter the circumstances.

During your due diligence stage, you’re well within your rights to ask about any past incidents that have required the business operations to be reconsidered. A franchise should have contingency measures and you can use past examples to form part of your questions. Ask if and how the business has overcome past challenges or has ever had to pivot due to a changing landscape. Things such as buying power, an internal support structure and national accounts should all help to insulate franchisees in tough times. Let’s face it, it’s one of the many reasons that a franchisee is more likely to survive than an independent.

When you’re attempting to whittle down your shortlist, it’s vital to speak to existing franchisees. Not only can they give you a true representation of the business in action, they’re the ones who have faced, and overcome, any problems. Use to this knowledge to your advantage – integrate these nuggets of information into the pros and cons that will help you to make a better decision. At Tutor Doctor, we actively encourage our prospects to speak with our existing network. This presents an opportunity to share valuable insight and knowledge, as well as allowing them to form relationships that will become invaluable once their business is up and running. Together, as a unit, a well-developed and supported network can usually withstand anything.

With almost every day that passes, technology alters how businesses operate. If something does affect the normality of business, it’s the swift reaction through technology that usually provides a solution. Within your search, look at the franchisor’s willingness and past tendency to innovate systems and develop the brand. Whether it’s in product/service delivery or in-house support and daily operations, investment into technology stands most businesses in good stead to survive and even thrive during challenging times. In light of the recent outbreak, Tutor Doctor franchisees have moved all of their tuition online. Very quickly, tutors, students and parents got on board and franchisees are actually experiencing more demand as a result. Brands that embrace and utilise technologies to their greatest potential make for a very attractive opportunity.

Fortune telling isn’t part of the franchise journey but you can certainly look out for businesses that have procedures and plans in place in case of particular incidents. As part of your due diligence, be sure to investigate how robust and resilient brands really are when faced with a problem. Find evidence to suggest that the franchise can keep things moving, even if the world does come grinding to a halt.

ABOUT THE AUTHOR
Frank Milner
Frank Milner
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