1. Quality Documentation
Our FIM, Franchise Information Memorandum, is the first document we send out to a potential franchisee. It is our company summed up in one document and reflects the business as a whole, so it needs to be well written and well thought out and continually updated.
2. Support
Support is priority number one, but do not set unrealistic levels of support that cannot be maintained. Keeping existing franchisees happy means you get glowing references which in turn attracts more franchisees. Many of our current franchisees have taken on more territories which is a great sign that we are doing something right.
3. Communication
Make sure there is communication between existing franchisees. We have a forum where franchisees can ask each other questions and discuss best practices on anything and everything to do with the business. This has grown to be a great knowledge base which we point any new franchisees to, just to soak some of it up.
4. Key People
This applies to any business but having some key people in place that you can rely on to support an ever-growing number of franchisees and employees is vital. You cannot be a master at everything - there are too many facets to a franchise business such as support, development and sales - but knowing that some of these elements are taken care of by capable, reliable people is very important. Also, don’t be too stingy with equity. Nothing motivates people more than a fair share of equity.
5. Marketing
Play around with the marketing. We spend most of our marketing budget on various franchise websites which have been key to attracting new franchisees, but we also try and mix it up and add in some email shots with various magazines or networks. We’re always looking to do something new and if it doesn’t work then you have learnt your lesson. Of course, if it does work, and you have a franchise to show for it, then it will certainly have been worth it.
6. Franchisees
Learn to say no as well as yes. Sometimes it is better to say no to someone who does not fit your vision or company ethos. It can be hard to say no, especially when you are starting out and need the finances to expand the company, but a bad franchisee ends up costing you more in time and resources.
7. Annual Conference
Every year, we bring the franchisees together from all over the world at our annual conference. The franchise conference takes place in a different location each year and is a great opportunity to discuss the company with the franchisees. Although this can be quite a costly event (we heavily subsidise ours) it is vital to the business. Our franchisees always say that they learn a huge amount from the lectures and talks but nothing compares to just chatting with other franchisees. It’s a fantastic way for the franchisees to get to know each other and a lot of them have become good friends because of it.
8. Continue to Improve
We certainly didn’t have it right from day one, and four years in we are still not even close but we continually reinvest in the product and strive to be the best. As managers, you have to have an overall vision for the business and you can’t stop until you get there. When you start running out of ideas then it’s time for you to leave.
9. Beware of Outsourcing
We used to be big advocates of outsourcing because when we were not sure of how much we would be making from one month to the next we could set aside an amount to spend on a project and get it done without having to add to our staff. Projects we used to outsource such as SEO, design and writing have all been brought in-house which now gives us better control and means we are not paying agency fees. As soon as you can, bring it under your control.
10. Passion
You have to completely believe in your business and how big or great you are going to be. Initial franchisees, especially, are taking a big risk in investing with you when there are so many opportunities out there in the market today. In a sense, they are buying into you as much as your business model and if it is not run well, their franchise is going to suffer.

Neil Waller and James Street   www.mydestination.com