How to Run a Franchise Business: The How to Guide

Find a franchise business opportunity

Franchising is one way to start a business for yourself - someone has (usually) done all the hard work and created the opportunity. However, running a franchise brings with it some extra responsibilities over running a normal business. A franchise is useful if you lack business experience, especially in management.

Essentially franchisors are looking for motivated people with good communication skills from different backgrounds. That's one reason why franchisees are statistically more likely to succeed than normal business start-ups. And they provide lots of work: according to the Economic Impact of Franchised Businesses report, in 2005 American franchises operated 909,253 businesess which provided 11 million jobs.

Once you have found a franchise opportunity you will need to understand the mechanics of how it runs.

How to run a franchise

  • A good franchise offers a complete business package which includes training, marketing, helping you start-up, and operational procedures. These procedures, known as the 'operations manual' dictate what you can, and cannot, do with the franchise.
  • The franchise generally comes with a mentor - someone who knows how to make your investment a success. Make good use of this opportunity by writing down questions to ask and keeping a record of what is said.
  • Recruit staff just as you would in a normal start-up. Check references and have a 90-day probation period. Once recruited they, and you, have to abide by the operations manual.
  • Don't lose sight that this is your business - you will have to stay close to the day-to-day operation to ensure it works correctly and maintain customer staisfaction. Depending on the type of franchise you will have to hire specialist help such as an accountant to help you run the business.
  • You will have to pay a regular fee to run your franchise. Sometimes franchisees feel they are doing all the hard work and sharing the rewards for getting little in return. Don't forget the help and support you received in the beginning to make the franchise a success.
  • Occasionally, the relationship between franchisee and franchisor may break down. It's important to always have an 'exit strategy' should this happen. Can you sell the franchise? Be aware of any transfer fees or whether you can actually sell the franchise.
  • Running a franchise and making it a success boils down to hard work. Keep up-to-date with the franchisor's training program; visit other franchisees to see how they work and don't be afraid to change things if they aren't working (so long as it doesn't contravene the operations manual!).

Make money with a Franchise

Make money with franchise business opportunity
Make money with franchise business opportunity

Franchise tips and resources

The operations manual has been compiled through tried and tested experience - you are paying for this knowledge so it's best to follow it.

In 2005, American franchises operated 909,253 establishments, which provided 11 million jobs.

Further info
The American Franchisee Association

International Franchising Association

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Comments 1 comment

Chris Adam profile image

Chris Adam 3 years ago from Valley Center, California

1: It's not your personality that makes a great fit in a business, it's your skills and what drives you.

2: When choosing a franchise you absolutely must choose one based on your skills and culture NOT on products you like to sell. Remember most likely you will not be working in the business forever, you will want to work ON the business.

3: To choose a franchise take the right first step and identify strengths and driving markers.

4: The best test for this looks like it was designed in 1997 however the report at the end is extremely detailed. (it's here:

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