Editor’s Note: This article was kindly shared with us by J. Andrew Mengason, Chief Growth Officer for Five Star Franchising. Five Star Franchising is an innovative, growing platform of home service brands, including Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800-Packouts, 1-800-Textiles, and Mosquito Shield. Mengason has more than 30 years of experience in franchising and brand acquisition.
For many people, franchising is one of the best available opportunities for financial freedom. Launching an independent small business requires a massive amount of capital and effort. It can also entail significant risk.
Franchising addresses those challenges by providing owners with proven, standardized frameworks for success. With scalable business models and shared resources, franchise businesses mitigate the risk involved in independent entrepreneurship.
Tapping into existing brand awareness and franchise support systems allows franchise owners to immediately ramp up their business and their potential for success. Applying the same principles of shared resources and economies of scale, franchise platforms are supercharging the industry by unlocking even more opportunities for success.
Franchise platforms, especially platforms focused on a single vertical or sector, such as home services, amplify the traditional benefits and advantages of the franchise model. With a franchise platform, owners enjoy a superstructure of shared resources and culture, consumer awareness and economies of scale that elevate franchising to the next level.
Compared with a single franchise brand, an effective platform further streamlines operations and mitigates risk so owners can zero in on sales, profitability,and growth. By liberating franchise owners to focus their attention on the growth of their location or territory, platforms support a comprehensive efficiency that drives growth at all levels, from individual locations to the platform level.
When properly organized and implemented, the franchise platform fulfills the industry’s mission to serve all stakeholders across brands, from customers and vendor partners to franchise owners and team members to brand- and platform-level leadership.
In this article, we will explore the many ways that franchise platforms set owners up for success.
Shared Services and Support
By absorbing operational functions such as human resources, accounting, and IT, and distributing shared support for marketing, staffing, and other processes, platforms create new levels of efficiency. Shared service supports brand leaders and their teams in their mission to empower owners and drive growth for their brands.
One notable advantage comes in the form of shared data and analytics that are more powerful than anything available to independent franchisors. The vast amount of data available across a platform’s various brands powers valuable insights, such as identifying and filtering consumer preferences and industry and economic trends. These insights enable quick and precise decision-making and rapid response to evolving demand, ensuring optimized customer experience and operational efficiency.
When scaled to the platform level, shared data provides valuable insights as well. Platforms can leverage data from one brand or combined services to drive leads and referrals while lowering the costs of acquisition.
Consolidated Partnerships and Buying Power
Franchise platforms are uniquely positioned to enhance the value of their brands by connecting many owners representing a wide range of services and territories. The diversity and resilience of their owner base give platforms the ability to build deep networks of preferred vendors and to effectively negotiate competitive pricing, access to exclusive products and services, and profit-driving opportunities such as rebates that are not available to independent franchisors.
In addition to measurable cost savings, this combined buying power is another way platforms help franchise owners build value by saving time and effort. Instead of researching, establishing, and maintaining individual vendor networks, owners are free to focus on operations and growth.
A Common Culture and Mission
Platforms are an effective tool for consolidating a range of related, complementary services. They are equally successful at consolidating the diverse contributions of team members, owners, and leadership.
The franchise industry brings together people from a variety of backgrounds. The platform model combines the different skills, experiences, and knowledge available across brands into one powerful team working together with a shared purpose toward impactful goals.
The greatest power of franchise platforms is the shared sense of purpose across brands that reinforces resilience and stability. Leveraging the mission, culture, and values of each individual brand, a platform can implement a comprehensive culture that incorporates and multiplies each brand’s strengths. A common, shared culture guides teams and leaders at each level to meet day-to-day challenges and identify opportunities for enhanced service, efficiency, and value.
Building on the foundation of its people and brands, a franchise platform can see impactful results that few business models offer. When all levels of a franchise platform are aligned, there’s a cascading effect. Shared resources and efficiencies, supported by a common mission, will open new growth opportunities that in turn strengthen the company culture, drive new efficiencies and opportunities, and energize sustained accelerated growth.
Get in on Franchising Today!
If you are interested in benefiting from the robust support offered by franchise platforms like Five Star Franchising, you are in the right place. Many aspiring franchise owners enjoy and appreciate the coaching, guidance, and overall benefits of working with multi-brand platforms. But it’s important to find the brand that’s the right fit.
So how do you find the perfect brand for YOU? FranCoach is a national search firm dedicated to working with individuals who are interested in owning a franchise. We have partnered with over 600 of the top franchisors in the country, spanning nearly 70 industries.
When we work with clients, our number one goal is to help them find the absolute best franchise for them to own. If you are looking to start a business, build a lasting legacy, make an impact in your community, and be your own boss, franchise ownership might just be the ideal path for you.
Reach out to us to learn more about potentially becoming a franchise owner. There is never any fee for our service, so why not take the first step today toward your better tomorrow?