The majority of franchise companies are in large, competitive spaces.
From pizza, burgers, home services, non-medical senior care, to the fro yo (frozen yogurt) market.
How do you tell a good franchise from a great franchise?
One aspect to look at and ask about is the franchise’s POD.
A franchise’s ‘Point Of Difference’ refers to the factors of goods or services that establish differentiation in the competitive marketplace.
The best indicators to a franchise companies POD success would namely be in increased customer benefits and developing greater long-term brand loyalty.
Here is another frog cautionary note; an over-the-top, excessive degree of differentiation could also cause the goods or services to lose their standard or market position within a given industry, leading to a subsequent loss of consumers.
Therefore, striking a balance of differentiation and market association is required. That balance is considered a point-of-parity and has to be adopted in order to allow a franchise to further enhance its competitiveness.
By differentiating itself from its competitors, a franchise might have greater potential income. Having differentiated goods or services limits the choices of consumers, which drives them to purchase goods or services from a particular company.
In addition to that, the possible threats brought on by competitors would be lowered significantly. By adopting a differentiation strategy, that would allow franchisee’s to be more competitive and potentially be able to have a greater source of income.
The Franchise Frog