Starting a franchise can be a decisive business move, but as such, it involves one serious consideration: product quality. When you acquire a franchise, you aren’t only purchasing a brand name; you are also purchasing the quality of the product of the franchise. Whether you are in the pharmaceutical, food and beverage, personal care, or any other industry, the long-term success of your franchise depends product. Let’s discuss how to evaluate product quality before choosing a franchise.
At Scott Morrison, we understand the need to make informed decisions based on quality and performance. In this blog, we will take you step-by-step through the evaluation of product quality to ensure you know what you are investing in before signing a franchise agreement. If you are evaluating a pharma franchise or any other business model, this article may help you avoid costly mistakes and buy into a brand that has value.
Table of Contents
ToggleBefore we discuss the steps for evaluating the quality of the product, let’s first discuss the importance of product quality in the franchise.
Customer Retention: A quality product makes returning customers, lowers churn, and increases repeat purchasing.
Brand Reputation: A franchisee represents a franchisor. Bad product quality harms your business and the reputation of the brand.
Operational Effectiveness: Quality products manage to have fewer customer complaints. It can result in less returns and a smoother business flow.
Regulatory Compliance: At times, the poor product quality can lead to legal problems and severe effects. It can, especially in pharmaceutical or food evidence situations.
When starting your evaluation, you should find all the information about the product firstly, Request the product catalog, sample packaging, ingredients (where necessary, such as consumables), and sources of raw materials, as well as manufacturing information.
Key tips:
If it is a pharma franchise, ensure that all medicines or health products have the required approval from the DCGI.
This is perhaps the most straightforward way to assess quality.
At Scott Morrison, we always advocate that our clients request product samples before proceeding with any franchise. As clients, we will have a tangible experience that brochures or presentations.
Quality products originate from however and wherever they are manufactured. Ask the franchisor about the manufacturing facilities:
Are the units GMP certified?
If it is a pharmaceutical or healthcare franchise, you will want the manufacturing units to comply with WHO-GMP guidelines and proper sanitization, storage, and waste processes to be enforced.
Never commit to a franchise until you have ensured that the product adheres to all industry regulatory requirements.
The most common certifications include:
A high-quality product in one area of the country can not sell well in another area because people may want something different (culture), they may not be able to afford the price point, or they may have better alternatives presented to them. Before you sign the franchise agreement, assess:
If there are franchised outlets or distributors, you can reach out to them and ask them about:
You can also look into Google reviews, social media reviews, and online review forums. If a product has consistent positive comments, then you can consider that option.
The quality of the product can suffer if the supply chain is not right. The delay in the delivery can cause unsuitable packaging or expiry to significantly impact your reputation. Ask the franchisor:
A franchisor that is supported by a good franchise distribution model and support for logistics is typically reliable.
If you are uncertain how to do this and assess the product then consider working with franchise consultants such as Scott Morrison. We provide clarity on assessing franchise systems, the quality of products, and the overall viability of the operations.
We do comprehensive due diligence so you are only dealing with franchises that deliver sustainability, customer need and support, or value from your investment.
The choice of franchise is about way more than the brand name or the amount of your initial investment. Product Quality will determine your success. Your passion may lead you to a franchise in health and wellness, personal care, or retail, and your first endeavor in franchise ownership should be evaluating and verifying product quality.
Scott Morrison assists new franchisees in assessing every aspect of a model, including product quality, to help you make intelligent, confident, and profitable decisions.
The quality of products and services for a franchise affects customer attitudes, brand credibility, and profitability over the long term. Brands can destroy customer satisfaction with poor quality, which leads to customer irritation and poor business outcomes.
You can ask for samples of the product, lab testing reports, DCGI approvals, WHO-GMP certifications, and customer feedback.
FSSAI (for food), ISO, WHO-GMP, DCGI (for drugs), and similar industry-specific certifications.
Yes, we have a team that can provide full-service franchise evaluations, which include product quality assessments, document checking, and market assessments.