Selecting a Franchise Supplier

Anyone that's been involved with franchising in some way, shape, or form knows that it's quite a unique business model. For a franchisor that's just starting out, the idiosyncrasies can be overwhelming. That's when he or she turns to partners and vendors to help him or her figure things out. Unfortunately, not all suppliers understand the franchise model themselves.

The International Franchise Association is one of the best resources for franchisors out there. Within the Association they've assembled a Supplier Forum whose member companies cover a wide variety of functions -marketing, finance, legal, franchise sales, consulting, and even equipment and displays (like F.C. Dadson). If you're looking for suppliers for your franchise, this is a great place to start.

What makes these suppliers different from the rest is that they've made the commitment to understanding the franchise model and have developed products and services that are specially designed for franchise systems. While every franchise will still have its own unique set of needs and requirements, these suppliers tend to be better prepared to respond to those needs.

Because the suppliers a franchisor selects have a big effect on the rest of the system including the franchisees' businesses, it's incredibly important to thoroughly evaluate supplier options and select the one that is the best fit for the company. And it also makes sense to select a supplier that not only fits the system now, but can continue to fit the system as it grows. That way you can avoid the hassle and expense involved in seeking out new suppliers and getting them acquainted with your business.

So, how can you help weed out the bad seeds to find suppliers for your franchise? Here are some important questions to ask:

• Who are their clients and is there a good representation of franchise companies?
• How have the suppliers' products/services worked for those franchise clients?
• Are those franchises still clients?
• How would the suppliers' proposed products/services suit your franchise?

And always, always, always ask if you can contact their franchise clients for references.


--Larry Myer (Connect with me on LinkedIn.)