Is the Franchisor Providing Those Services Which Can Assist in Your Success?
June 5, 2011 by Kathleen McDonald
Filed under Resources
Most franchise businesses are representative of the business format model. The franchisor provides franchisees with a proven management system and a licensed trade name. The management system provided by the franchisor includes a number of key services. These services, and the delivery of these services to franchisees, demonstrate the strength of the franchise system. When these services are properly managed by the franchisor, the franchise brand is recognized as one which provides excellent value at a reasonable price.
What services should be provided by franchisors?
The list is short but each of these, with one exception, must be included as part of all franchise programs.
- Site Selection. Only retail franchises require site selection assistance from the franchisor. The franchisor will have determined site criteria which include space requirements; suggested rent schemes; types of buildings within which the business is to be located; identification of site related amenities such as parking and public transportation; and general demographic profile of suitable market territories. Many franchisors provide a site selection manual which provides information and checklists to be used by franchisees during this process. The franchisor usually reserves the right to review sites prior to the franchisee initiating lease negotiation.
- Operations Manual. Upon execution of the franchise agreement, franchisees obtain a copy of the franchise’s operations manual. This manual contains proprietary information on operating systems associated with the franchise business. This information is owned by the franchisor and is regarded as confidential in nature.
- Training. The franchisor’s training program combines classroom and practical sessions. Training is scheduled over a period of time, averaging 2-4 weeks, and may include assistance at the franchisee’s business location prior to opening.
- Pre-Opening Support. This includes assistance in hiring and training staff, identifying local suppliers, selecting contractors for store design and construction, managing initial inventory and planning the grand opening promotion.
- Advertising and Marketing. Franchisors want to protect the franchise brand and one important way to do this is by managing all advertising and promotional programs. Franchisors create print, broadcast and electronic media which is used by franchisees in their local markets. Franchisors provide guidelines for creating franchisee web sites. Franchisors create national and regional advertising campaigns which are promoted with collateral materials made available to franchisees for use in their local markets.
- Operations Support. Franchisors provide oversight of operations to franchisees to insure that proper procedures are implemented by each franchisee. This oversight is intended to insure the integrity of the brand and to assist franchisee in improving their business to increase unit revenues and profits.
Next Month: The Importance of a Formal Site Selection Process for Your Franchise Business
About the Author. Ms McDonald is an international franchise consultant with experience in assisting local enterprises in developing their concepts as franchise businesses.
Contact her at mcdonaldcabot@gmail.com or at www.mcdonaldcabot.com
