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Over the past two decades we have had the opportunity to work with hundreds of franchise systems, offering a wide range of diverse products and services. Yet, as different as these companies have been, we have seen a similar pattern emerge repeatedly. This experience has led us to isolate what we call the eight building blocks of a successful franchise system.

1) Making the customer the focus of everything we do

• Get the customer.
• Keep the customer.
• Make the purchase experience exceed the customer's expectations.
• Build goodwill, which will result in the customer being the best form of marketing.
• Offer a wide range of products and services, which will get the customer to buy more often.

2) Superior leadership

You and your management team must provide the kind of leadership that earns the respect and trust of franchisees. Your leadership should inspire an appreciation for the operating system, help internalize the desire to follow the system and result in opening additional units.

3) A strong business and financial plan

To succeed in franchising, both you and your franchisees must carefully plan your growth and control your finances. In addition, you must have a plan for systematically monitoring franchise operating information and analyzing return on investment from the development, marketing, operations and training departments.

4) Excellent franchisees

We believe franchises should not be sold. They should be awarded. You must have an efficient system for recruiting and awarding franchises to people who will:

• build the value of your brand
• follow your proven operating system
• use your ongoing support to dominate local markets

5) Effective manuals

At the very least, your manuals should clearly and concisely document your proven operating system. At best they can also:

• enhance the value of your brand among franchisees
• teach the value of franchising, marketing, customer service and compliance
• act as valuable marketing tools in the recruitment of new franchisee candidates

6) Excellent franchiser/franchisee relations

You must constantly promote a franchise-wide strategic-partners relationship. Everyone should work together toward the common goals of disproportionate market share, enhanced brand image and mutual profit.

7) A focused field staff

You must have a professional field staff who will work in harmony with franchisees to help them deliver excellent customer service, build market share and work with fellow franchisees to dominate local and regional markets.

8) Effective training programs

Awarding franchises to top candidates is only the beginning. You must have a carefully planned training program to assimilate them as smoothly as possible into your organization. You must also provide ongoing programs that will further develop existing franchisees and reinforce the purpose and practice of your systems and strategies.