A lot of entrepreneurs, especially those who are looking to increase their interest, will often either start up their own original business or, if they have the capital, they might instead go for a somewhat easier route and pick to be a franchisee of an already successful business. It’s not too hard to see why this is done; there’s usually a demand for said business, such as Chick-fil-A, McDonald’s, Starbucks, or some other popular business. But is this easy money?

Is this actually smooth sailing? You might be surprised to find out that, no, it’s actually not! As we step into 2024, the keys to success for franchise businesses continue to adapt to changing consumer preferences, technological advancements, and market trends. Seriously, it’s just like any other business; it takes time, thoughtful calculations, and a solid strategy to make a difference! So, with that said, what all can be done? Well, here’s what you need to know!

What are the Steps Needed for Success?

It’s not really smooth sailing, so that’s one thing you have to keep in mind. Just like any other business, you have to put effort into it. This is actually one of the biggest mistakes franchisees make. There’s usually this mindset of “Oh, this is a thriving business millions recognize; all I need to do is pick a good location, and the money will come!” while it might sound that straightforward, it’s actually not. So, here’s what you’re going to need to know about leading this business to success. 

Embrace Technological Advancements

 What you have to keep in mind is that in 2024, technology is at the forefront of business success. From advanced point-of-sale systems to innovative marketing strategies, staying technologically savvy is crucial. Franchisees should invest in the latest tools and software to streamline operations, enhance customer experiences, and gain a competitive edge. 

You’re going to have to try and utilize data analytics to understand customer behavior, optimize inventory management, and make informed business decisions. For the most part, the actual business attached does allow for this.

Customer Service Needs to Come First

Customer expectations are higher than ever, and providing an exceptional experience is non-negotiable. Does it matter what chain or popular brand it is? No, it definitely doesn’t because even the most beloved brands and become hated if the customer service is awful. So, franchisees should focus on creating a seamless and personalized customer journey. 

Plus, it’s going to help leverage customer feedback, social media, and other channels to understand their preferences and tailor your services accordingly. For the most part, local pages of said brand are allowed, and it’s something the franchise itself usually encourages. So, implementing user-friendly mobile apps, loyalty programs, and efficient customer service can significantly contribute to customer satisfaction and loyalty.

Adapt Sustainable Practices

You might not have to do too much for this as it might be non-negotiable since more countries are focusing on this anyway. However, as environmental awareness continues to grow, consumers are increasingly gravitating towards businesses committed to sustainability. So, you should explore eco-friendly practices in their operations, from sourcing products responsibly to reducing waste. Plus, communicating your commitment to sustainability not only aligns with current consumer values but can also attract a broader customer base.

Stay Agile in Marketing

For this one, it’s all really going to depend on the business itself because some will provide marketing materials (like posters, mailing coupons, etc.), but some won’t allow it, or you’re going to be on your own. Honestly, it’s all going to vastly depend. So, what you really need to think about is in the digital age, marketing strategies evolve rapidly. Franchisees like yourself must be agile and adaptable in their approach. 

You could look into a franchise marketing agency, and they can be the ones to handle social media, influencer marketing, and content creation since these are all powerful tools for reaching and engaging with audiences. Plus, having to hire one person or a team for marketing can get way too expensive. So, overall, this will help you out when it comes to developing a robust online presence and staying active on relevant platforms. 

Foster a Strong Local Presence 

While being part of a larger franchise provides a recognizable brand, you’re also going to have to focus on building a strong local presence. You could consider engaging with the community through sponsorships, local events, and partnerships. Plus, it’s a good idea to just emphasize your connection to the neighborhood and showcase the unique aspects of your business that resonate with local customers.

Keep Training Your Employees

This is what a lot of franchisees get wrong; they think that the first week of training for new hires will be more than enough. So, you have to keep in mind that employees are the backbone of any successful business. This is especially prevalent right now in 2024! So, the emphasis on employee well-being, training, and development is paramount. 

You’ll need to provide ongoing training to keep staff updated on the latest industry trends, customer service techniques, and technology. Plus, a motivated and well-trained team not only enhances customer experience but also contributes to a positive workplace culture.

Consider Responding to Industry Trends

Something to really keep in mind is that remaining competitive requires a keen awareness of industry trends. It’s absolutely going to be in your best interest to just regularly monitor market changes, emerging technologies, and consumer behaviors. 

You’re not always guaranteed to have this work, but it still doesn’t hurt to try. So, just go ahead and stay ahead of the curve by adapting your products, services, and business strategies to align with evolving trends. Plus, if you can (since not all companies allow this for their franchisees), consider proactively responding to industry shifts to position your franchise as a leader rather than a follower.

Always Look for Improvement 

Again, there’s always going to be some limitations. Some companies will do what they can to help make their franchisees grow, but others simply won’t care or will limit them to keep them strictly on brand. Quiznos and Subway are two great examples of this. It just all really varies. So, with that said, if you can, just try to improve. If there is room for your business to improve, and it’s basically allowed, then by all means, you should. 

So, whenever you can, just try to seek feedback regularly from customers and employees to provide valuable insights for improvement. Use feedback to identify areas for enhancement and actively implement changes. Plus, demonstrating a commitment to continuous improvement not only sets your franchise apart but also signals to customers that you are responsive to their needs and opinions.

What are the Common Pitfalls that Franchisees Deal With?

While expansion offers the potential for increased revenue and brand recognition, franchisees must be mindful of common pitfalls that can impede their success. Oh yes, so it’s not just about growing the business with the tips above; that alone doesn’t mean it’s going to be smooth sailing because you also have to keep in mind that there are usually some pitfalls here and there. So, here’s how you can navigate around them to ensure sustainable growth.

Poor Location Selection

Even if it’s a popular brand, like Starbucks, the location is still going to greatly matter. So, you seriosuly need to think about the location since choosing the right location is paramount to the success of a franchise business. There are usually pitfalls by either rushing the location selection process or neglecting the importance of understanding the local demographics. 

So, it’s essential to assess foot traffic, accessibility, and the target audience’s proximity to the chosen location. Plus, conducting thorough due diligence on potential sites can prevent costly mistakes and set the stage for long-term success.

Lack of Market Research

One of the most common pitfalls for franchisees is insufficient market research. So, before expanding, it’s going to be crucial to thoroughly understand the local market dynamics, competition, and consumer preferences. Basically, just ignoring this step can lead to misaligned strategies and a failure to meet the unique needs of the new market. Plus, franchisees should invest time and resources in comprehensive market research to make informed decisions about the viability and potential success of their expansion efforts.

What are the Local Regulations?

Now, you would think that this wouldn’t matter too greatly, other than something like health inspections, but you’d be wrong. So, navigating local regulations and compliance requirements is a critical aspect of franchise expansion. 

Essentially, failing to understand and adhere to local laws, licensing, and zoning regulations can lead to legal complications and operational disruptions. Plus, franchisees should engage legal counsel to ensure they are well-informed and compliant with all relevant local regulations, safeguarding the business from potential legal pitfalls.

Is the Branding Consistent?

This is almost always one of the most important aspects that are usually non-negotiable. But you’d be surprised that sometimes, some franchisees are just not on brand like they should be. Inconsistent branding across locations can lead to confusion among customers and dilute the overall brand identity.  If they’re walking into a McDonald’s, then they better know and feel like it’s your average McDonald’s.