Tags: franchisor, SWOT analysis, route to revenue, franchisees, customers, franchised outlet, Market research to compete and survive, Franchisees and customer satisfaction surveys, Regular audits, Organising franchise meets, Building a sound franchise relation
Wearing the hat of a franchisor is not an easy task, as it involves monitoring the performance of the franchisees along with successfully running of the franchise system. How a franchisor can make this Herculean task easier, read on to know
A franchising business no doubt is an exceptional business proposition, which involves lot of assistance and supervision on part of the franchisor. Being the franchisor, you have to administer your own business, besides monitoring your franchisees as well as the customers, who are the revenues of your business. As a franchisor you have to execute a number of responsibilities in order to strive through the stiff competition. The franchisor has to administer the franchise system on regular intervals so as to avoid any mishaps in future. You have to re-examine and implement newer marketing and promotional strategies to stay ahead in the market. The first and the foremost thing a franchisor must do is to find the answers of certain basic questions related to franchising. These are as follows:
These are some of the basic questions that will help you monitor your own performance and also monitor the expectations of the franchisees and customers.
Conducting intensive market research
One of the most frequently used tools in market research is SWOT analysis. SWOT analysis provides evidences of how well a business is functioning and in what ways it can perform better. Besides SWOT analysis, market research involves analysis of the brand’s performance in terms of products and services in the market. It also helps the franchisor introduce new ideas and concepts catering to the demands and expectations of the customers. Such market research helps to monitor the performance and of the franchise brand and ensure measures to maintain the position and growth of the franchising business.
Franchisee satisfaction survey: In order to measure the satisfaction level of the franchisees regarding the kind of support and guidance offered to them, franchisees satisfaction surveys can be conducted. As a franchisor, you can try traditional paper-based surveys or telephonic, or e-mail based surveys by hiring the experts from research and consultancy firms. To get unbiased or authentic results, it is advised to conduct mystery surveys where the identity of the franchisor is kept confidential.
Customer satisfaction survey: When it comes to customers’ satisfaction surveys, feed back forms through company websites can be used. Here unlike the franchisee satisfaction survey, the franchisor’s name is not concealed. Timely customer satisfaction surveys are necessary to get instant feedback from the customers with respect to the services and products offered by the company or the franchised outlets.
Being a franchisor, you need to monitor the performance of your franchisees on a timely basis in order to ensure proper functioning of the franchise network. This can be done with the help of a franchise management team. Also you can hire a third party for conducting the audits. Audits are an important measuring tool for the survival of any franchise network. Further, it helps the franchisor to keep a check on the working style of the franchisees and take preventive measures to improve the functioning of the franchise business.
Organising franchise meets
A franchisor must organise various franchise events such as award shows, annual conferences, workshops from time-to-time in order to let the franchisees meet each other. Such franchise meets generate new ideas to improve and run the franchise business more efficiently.
Building a sound franchise relation
Franchisees are the driving force of a franchise system. Therefore, if you want a successful expansion of your franchising business, you need to build a strong relationship with your franchisees. You can achieve this by providing your franchisees with:
To conclude, the franchisor must ensure proper functioning of the franchise business together with the needs and expectation of the franchisees as well as the customers in order to flourish.
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Franchising may be the best route if you want to expand quickly but know some quick facts of the business before taking that plunge.
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Reliance Securities Limited, one of India’s leading equity brokerage houses, is looking for more franchise centres. The company