The success and growth of any franchise business are totally depending on having an energized and motivated team of franchisees. To receive a proper commitment and confirmation from franchisees, the franchisors ensure to provide an active and engaged franchise support system. For this franchisor designed a comprehensive support system to strengthen the business of franchise. From the time you sign your franchise contract to throughout the life of your business; the franchisor’s experts are around your corner to help you succeed.
Prospective franchisees need to understand two major concepts about the support they should expect to receive from franchisors.
1) Based on Industry:
As per the franchise system and industry type, the support varies based on the size of the franchisor, their financial capabilities, the culture of the franchise system, and the services of franchises offered by the franchisor.
2) Based on Contract:
The franchisor is liable to provide you only the support and services mention in the contract. You cannot expect more support than it’s contained in the written agreement, so it is necessary to go through each point mentioned in the contract and make sure you understand how franchisor will provide you support before you sign any franchise agreement.
You need to figure out what type of ongoing technical and financial support you will receive. Remember, you do not obey to the franchisor; you are an independent boss operating under a license that requires to meet the franchisor's standards.
While franchise support varies from industry to industry, in most franchise systems you should expect support to receive.
Prime Location Selection:
Ensuring that to select the right location is vital for any franchisee’s success. The franchisor should engage closely with the franchisee in selecting the best prime location to start the business. They ideally use necessary tools based on Geographic Information System. A good location can help to improve traffic, boost sales and increase your overall growth. This is one of the keys supports to new franchisees finds the perfect location. But it doesn’t stop here!
After approving the site location, the next responsibility of the franchisor is to build up the set-up based on their business standards, and also meet the local building codes. For this, the franchisor provides a list of necessary materials need to start the business such as equipment, decor and other important items you need to buy. Before you open your business, you will generally need the franchisor’s approval for developing your location meets their standards.
It seems it doesn’t stop supporting you! It is imperative to recognize the type of ongoing training and assistance you will get from the franchisor. As part of ongoing support, an expert franchisor will provide an inclusive operations manual and proven business model to franchisees. This manual should outline all aspects of running the business smoothly. Many big franchisors also offer administrative and technical support to advise and solve employee issues, insurance requirements and other matters relating to the operation of your franchise.
In order to run a successful business, the franchisor offers a detailed operations manual that includes apposite guidelines for carrying out its operating system. Before you start your franchise you need to take intensive training about the operating system and business operations as a whole. Majorly complete training can take place at the corporate headquarters to learn policies and procedures, about the brand, and some useful tips for running your franchise business. Most franchisors also offer periodic training and seminars.
Marketing and Advertising:
Franchisees are required to contribute funds in marketing and advertising and franchisors should provide a comprehensive marketing plan that includes brand building, events marketing, and promotional campaigns. Besides, franchisors also guide new franchisees in local and regional marketing initiatives by providing customized and professional marketing materials such as posters, brochures, banners, and many more.
Most franchisors instigate advertising support, on a national or local level. These initiatives can be through different media channels such as TV and radio commercials, direct email campaigns and other online media channels.
Sometimes technical support isn’t enough to help a franchisee to sustain the franchise business. For this franchisors offer direct financial assistance to get through a temporary crisis. As well as defer, reduce, or waive royalties or other fees owed by the franchisee. They also allow the franchisee with special extended terms on invoices for products or supplies. And they help the franchisee to negotiate the extended or favorable terms on business loans and leases.
Reducing Supply Costs:
Strong franchise system help franchisees to reduce overhead costs. Franchisors seek competitive bids from suppliers and confer advantageous pricing for goods to sustain in the competitive market. Some franchisors monitor and reduce waste, breakage, and spoilage in the supplying products.
Most franchisors offer initial and advanced sales training to franchisees. Franchisors send their expert staff into local markets to give training franchisees to improve business growth in a short period of time. Franchisors also organize mentoring programs so franchisees can share knowledge and best practices to implement a strong strategy. They can also bring in external experts to train their franchisees.
A franchisor can improve their company's performance by focusing on hiring the right candidate for a franchise business. Expertise and experience are two key factors when hiring a franchise employee. The more prudence that goes into the skilled team you're hiring, the more likely you coagulate a framework for long-term success.
Before You Leave,
Franchisor support can be a big advantage and an important factor in franchise business success. When setting up a franchise network, the franchisor has to keep these important factors in mind to provide unmatched support to the franchisees to survive and thrive. For a new franchisee, the franchisor’s tools will become more sophisticated and robust to simplify the process and achieve the goal. With the proper input in business operations and careful attention in marketing and advertising of products, a franchisor’s relationship with its franchisees can flourish.
If you are thinking about buying a franchise business, before signing the contract agreement you need to first find out what type of franchise support system franchisor offers.