Advisory Jan, 05 2011

Coordination: Mantra to Franchise Success

The franchise system is a mechanism developed by the franchisor and executed with the help of channel partners called franchisees. Thus coordination of the entrepreneurial and managerial qualities of both the franchisors and franchisees is imperative for

By Ramanjit Kaur
Feature Writer
Coordination: Mantra to Franchise Success

A franchisor is the brain child of a franchise model. A passionate entrepreneur, with his gaze fixed on the horizons, creates, innovates, develops and runs the franchise system. Similarly, we cannot ignore the significance of the role of a franchisee in running a franchise system successfully. In short, the entrepreneurial spirit of a franchisor and managerial instinct of franchisees go hand-in-hand to establish a franchise business.

Ideal franchisor

It is true that the framework and structure of the franchise system is meant to favour the franchisors but realising the fact that a franchise business cannot succeed without franchisees, majority of the franchisors provide complete hand-holding to their franchisees. As per Rod Young, ED, DC Strategy, “Fundamentally, a franchise system and the franchise agreements that establish its contractual framework are the property of the franchisor. Therefore, in general, it favours the franchisors but offers enormous opportunities and leverages to the franchisees.” While Chandrajit Narra, MD, HiQ Business Solutions Pvt. Ltd, National Franchisor for Sir Speedy says, “Franchising brings the local knowledge of customers and practices to the table and for us, franchising is the way to keep focus to create and better the customer experiences. Thus, we ensure the success of our franchisees by providing them with the required knowledge and hand hold for growth and profit.” The entrepreneurial spirit of franchisors and their

quality to give wings to their dreams   sets them apart. They are imaginative, risk takers, forward looking, and optimistic who are spurred in part by a desire to create and establish a world class franchise system for themselves and their franchisees.

  • Role model and leader: Being the head of the company, you are the futurist who defines the probable directions of the company. Everyone, be it the employee of the company or the franchisees, look up to you for knowledge and experience for business growth.
  • Authentic information source: Adequate information about the company is important for both the franchisors and franchisees. They    are interested in knowing the fact that from when and where the company has emerged. So, as a franchisor you have to create a strong impression about the origin of your company.
  • Dynamic personality: Being a franchisor, you are the ambassador of your company for your employees and franchisees. It is congruent with the mission, vision and values of the company. As you are the face of the company, you should have the charisma and an amazing conversational style to leave an everlasting impression on your employees as well as franchisees.
  • Analyst: As you have already spent years in the industry establishing your business, you should communicate well to your employees and franchisees what you stand for. You should convincingly able to convey the reasons of your disagreeing with others.

Ideal franchisee

Despite of all these qualities, it always takes two to tango. In other words, a franchisor alone cannot make it happen without the proper support and co-ordination of the franchisees. The franchisees are akin to the managers of the company who work jointly to expand the business to new geographical areas of the world. As Donald Boroian, Chairman and CEO, Francorp says, “A franchisor cannot give his business to anyone but to the person who is his manager or has managerial qualities to run and handle the franchise business successfully and profitably.” This is because of the fact that being a franchisee, you need to work on many levels and serve multiple roles just like the manager of a company. It is like steering a ship safely to home by taking into account the weather, speed, available rations, crew performance, teamwork, and probability of facing dreadful problems. But to get succeeded, franchisees need to underpin some personal qualities as well such as responsibility, sensitivity, moral courage, and sound judgment.

In nut-shell, a franchise business is like a ship, which will always benefit from a creative navigator (the franchisor) who plots the route and steady hands (of the franchisees) at the steering wheel. Thus, proper coordination between the franchisor and franchisees will always facilitate franchise growth.

A franchisor is the brain child of a franchise model. A passionate entrepreneur, with his gaze fixed on the horizons, creates, innovates, develops and runs the franchise system. Similarly, we cannot ignore the significance of the role of a franchisee in running a franchise system successfully. In short, the entrepreneurial spirit of a franchisor and managerial instinct of franchisees go hand-in-hand to establish a franchise business.

Ideal Franchisor

It is true that the framework and structure of the franchise system is meant to favour the franchisors but realising the fact that a franchise business cannot succeed without franchisees, majority of the franchisors provide complete hand-holding to their franchisees. As per Rod Young, ED, DC Strategy, “Fundamentally, a franchise system and the franchise agreements that establish its contractual framework are the property of the franchisor. Therefore, in general, it favours the franchisors but offers enormous opportunities and leverages to the franchisees.” While Chandrajit Narra, MD, HiQ Business Solutions Pvt. Ltd, National Franchisor for Sir Speedy says, “Franchising brings the local knowledge of customers and practices to the table and for us, franchising is the way to keep focus to create and better the customer experiences. Thus, we ensure the success of our franchisees by providing them with the required knowledge and hand hold for growth and profit.” The entrepreneurial spirit of franchisors and their quality to give wings to their dreams sets them apart. They are imaginative, risk takers, forward looking, and optimistic who are spurred in part by a desire to create and establish a world class franchise system for themselves and their franchisees.

  • Role model and leader: Being the head of the company, you are the futurist who defines the probable directions of the company. Everyone, be it the employee of the company or the franchisees, look up to you for knowledge and experience for business growth. 
  • Authentic information source: Adequate information about the company is important for both the franchisors and franchisees. They    are interested in knowing the fact that from when and where the company has emerged. So, as a franchisor you have to create a strong impression about the origin of your company. 
  • Dynamic personality: Being a franchisor, you are the ambassador of your company for your employees and franchisees. It is congruent with the mission, vision and values of the company. As you are the face of the company, you should have the charisma and an amazing conversational style to leave an everlasting impression on your employees as well as franchisees. 
  • Analyst: As you have already spent years in the industry establishing your business, you should communicate well to your employees and franchisees what you stand for. You should convincingly able to convey the reasons of your disagreeing with others.

Ideal Franchisee

Despite of all these qualities, it always takes two to tango. In other words, a franchisor alone cannot make it happen without the proper support and co-ordination of the franchisees. The franchisees are akin to the managers of the company who work jointly to expand the business to new geographical areas of the world. As Donald Boroian, Chairman and CEO, Francorp says, “A franchisor cannot give his business to anyone but to the person who is his manager or has managerial qualities to run and handle the franchise business successfully and profitably.” This is because of the fact that being a franchisee, you need to work on many levels and serve multiple roles just like the manager of a company. It is like steering a ship safely to home by taking into account the weather, speed, available rations, crew performance, teamwork, and probability of facing dreadful problems. But to get succeeded, franchisees need to underpin some personal qualities as well such as responsibility, sensitivity, moral courage, and sound judgment.

In nut-shell, a franchise business is like a ship, which will always benefit from a creative navigator (the franchisor) who plots the route and steady hands (of the franchisees) at the steering wheel. Thus, proper coordination between the franchisor and franchisees will always facilitate franchise growth.

Related: Franchisee the brand builder

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