Free Report
9 Characteristics of a Great Franchisor
How do you know you're working with a great franchisor? Learn the nine hallmarks of a franchise system built to help you succeed.
Introduction
Great franchisors are hard to come by. However, when you combine expertise, knowledge, passion, and the ability to deliver on the brand promise, magic happens. Let's talk about franchising and what makes a great franchisor and a great franchise system.
What Is a Franchise?
A franchise is a type of license that grants a franchisee (residential care home providers, in this case) access to a franchisor's proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell services under the franchisor's business name. In exchange for acquiring a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual licensing fees. If a residential care home provider is awarded a Majestic Residences franchise, the provider still owns 100% of their business. The franchisee agrees to take advantage of the decades of placement, operations, and franchising experience that the co-founders of Majestic Residences possess.
How Franchises Work
A franchise is a joint venture between franchisor and franchisee to increase its market share or geographical reach. The franchisor has a business model that is superior in their chosen industry. It sells the right to use its name, operations, and marketing systems to gain Brand Equity in an area. If a potential franchisee meets the franchisor's requirement to be awarded a franchise, he or she then buys this right to offer their services under an existing business model and trademarks to dominate a market.
Why Franchise Systems Work
If you owned a small in-home care company in your city, you might be successful, but rarely can you compete with brand dominated companies like Home Instead, Right At Home, Senior Helpers, or ComForCare. The reason for that is branding, technology, and standardization. Franchised companies leverage their sheer scalability by pooling everyone's money together to not only stay current but to stay ahead of a changing market like senior living. Name recognition alone can create business opportunities. Part of Home Instead's success is the fact that there are 1,000 offices worldwide. Imagine if your residential care home had 999 homes just like you — having 1,000 of your homes around the country would easily take your profitability into the stratosphere.
The 9 Characteristics of a Great Franchisor
- 1They Are Inspirational
- 2They Are Supportive
- 3They Communicate
- 4They Are Honest
- 5They Listen
- 6They Adapt
- 7They Value The Team
- 8They Maintain The Personal Touch
- 9They Collaborate
Characteristic 1 of 9
They Are Inspirational
A good franchisor is inspiring — to their team of franchisees and to the customers buying into the products or services. If the franchisor is enthusiastic and passionate and truly believes in the values and aims of the business then that will cascade down to the team and beyond.
Characteristic 2 of 9
They Are Supportive
The relationship between franchisee and franchisor doesn't end when the franchise agreement is signed. A good franchisor recognizes the importance of investing in ongoing support, technology, and training for the franchise team. They are in tune with what the franchisees need from operations, marketing, and the management team.
Characteristic 3 of 9
They Communicate
It's vital that the franchisor is a good communicator — able to communicate the vision for the business to the franchise team and appreciate that communication is a two-way process.
Characteristic 4 of 9
They Are Honest
A good franchisor is an honest one — open about any hurdles that the business has or may face and how the brand can adapt to them or has learned from its mistakes. Keeping the franchise team informed about business developments and how it may impact them and their business is vital at every stage. Honesty is the first recognized value of the Majestic Residences' Welcome H.O.M.E. value system. The others are Observant, Memorable, and Empathetic.
Characteristic 5 of 9
They Listen
Any franchisor ignores feedback at their peril. Franchisees working on the frontline in the business provide valuable information about what's working in the business and what isn't, what is profitable and what is not. Harnessing the power of listening is vital to the long-term success of a brand. Listening to franchisees is what put CarePatrol and Co-Founder Chuck Bongiovanni in the Franchise Satisfaction Hall of Fame.
Characteristic 6 of 9
They Adapt
Things change. Potential residents and their families' needs and wants evolve, new trends emerge, and competitors appear on the horizon. A good franchisor sees the need for the brand and the product or service to evolve, and looks to adapt and develop the business to keep moving forward. The whole reason Majestic Residences was founded was to adjust to the changing senior housing industry.
Characteristic 7 of 9
They Value The Team
A franchise brand's biggest asset is its franchise team. A great franchisor creates a positive culture and values the contributions that everyone brings to the business, including the franchisor's staff, the franchisees, and their employees.
Characteristic 8 of 9
They Maintain The Personal Touch
As a franchise network grows, it's realistically increasingly tricky for any franchisor to maintain close personal relationships with every franchisee. A good franchisor will put in place plans for support in times of growth while keeping elements of personal contact with all team members — remaining the face of the business.
Characteristic 9 of 9
They Collaborate
A good franchisor recognizes the benefits of collaboration — they can see the benefits of working together, both in terms of an internal partnership between franchisees and external collaboration with other brands and services to help keep the brand relevant and progressive. The contracting collaboration with Majestic Residences and insurance companies is a real-life example of this characteristic — Majestic Residences contracts with insurance companies to service their clients by introducing them to our franchised homes as long-term residents.
Conclusion
A great franchisor exhibits all the characteristics above. They understand the value of the relationship between the franchisor and the franchisees. Our team has the background, finances, and the know-how to make Majestic Residences a nationally recognized brand. Both Co-Founders have started companies from scratch and built them into the national brands they are today. The only thing that is missing is you.
Your next step is getting more information.
Ready to Partner With a Franchisor Who Has All 9?
Take the next step and register now to schedule a group webinar about Majestic Residences.
Ready to Be Part of the Solution?
Join a franchise system built to meet the greatest demographic shift in American history.