Here are some highlights:
- Of the 18 industries covered, 17 saw an increase in the number of new business concepts being franchised.
- Over the past three years, over 900 new business concepts started franchising their operations.
- Not surprisingly, the fast food industry offers the most franchised units, followed by retail and service businesses.
We can learn much about achieving excellence from successful franchises. The appeal of a franchise is rooted in two promises.
First, there a very clear promise to the customer that's reflected in their brand. (Think: Starbucks, JiffyLube, McDonalds.)
Second, there's a promise to the franchise owner of a well-considered and proven business model that delivers on the customer promise.
The result is two-fold.
- It delivers something of excellence to the customer (Starbucks - a steaming hot, fresh brewed cup of coffee; JiffyLube - quick oil changes)
- It also delivers something of excellence to the franchise owner (a predictable return on investment, established business procedures, training, staffing plans, physical location layouts, marketing strategies and interested prospects)
BOTTOMLINE: The point isn't that all businesses should be franchised; the point is that all businesses would benefit from taking the same holistic approach to excellence that franchises take. Franchised businesses recognize that there are really two products - the product or service that the customer buys, and the business which the investor buys.
A goal of Six Disciplines is to help business leaders work on their business so they can be as satisfied with their businesses - as their customers are with their products or services.