Make extensive use of advertising to increase customer recognition of your product or service, with the advertising paid for by franchisees rather than your company. Take advantage of a top quality pool of talented people who want to own their own businesses and are not available as employees. Local owners are recognized as more motivated and efficient than employees, and often generate greater revenues. In relation to the potential financial benefits, the outlay to establish a franchise program is not substantial. Frequently, a franchise produces substantial revenues in relationship to the services performed for franchisees.
Most franchisees have long-term contracts and have made major investments.
Of course, there is no simple, foolproof formula. However, based on substantial experience dealing with companies large and small, I can suggest some generally applicable answers. Certain factors are present again and again in businesses that succeed in franchising. Although no company should expect to have all of these factors, the more you possess, the greater your chances of success. If your industry is relatively untouched by centralized decision making, and is the domain of small, independent operators, then you have a distinct advantage.