franchising aspects Jun, 21 2010

Blueprint of strong franchise network

Having developed a franchise system, the franchisor usually concentrates only on increasing his franchise partners. Expansion through franchisees is important, but consolidation of franchisees is equally important for increased sales. Explore to know more

By Abha Garyali
Sub Editor
Blueprint of strong franchise network

A successful business owner is always on the look out for the modes to expand his business for better sales. Franchising is one such mode of expansion and is increasingly becoming popular these days. Once the business owner has zeroed down on franchising as the mode of expansion, the next step forward is to appoint franchise partners. However, selecting capable franchise partners is not an easy task. Thorough research need to be done before appointing the franchisees. After all it is the franchisees who lay the foundation for a strong franchise system and add to the sales and profitability. Therefore, in addition to selecting efficient and promising entrepreneurs, franchisors should also pay attention in consolidating these franchisees and to keep on guiding the franchisees from time to time to increase their unit sales.

Elaborating on this Darpan Kapoor, Director, Kapsons, says, “Franchisors need to partner with number of capable franchisees, but at the same time giving enough attention and adequate training to the new franchisee is also important. We at Kapsons spend enough time in the franchised outlet of the existing franchisees and train them well before adding more franchisees to our network.”

Way forward to better franchise benefits

While consolidating the existing franchisees, the franchisors need to especially concentrate on sales activity of the franchised outlets. Increased sales will definitely boost the morale of the news franchisees. Let us find out what steps the franchisors are following for better franchise benefits and to increase franchise sales:

Paying attention to franchisees: By paying attention to each franchisee, the franchisor can surely encourage the franchisees for better sales and earnings. Increased sales are beneficial not just for the franchisees but for the franchisor as well.

Creating cordial relations: Regular attention from the franchisor will create cordial relations between the franchisor and its franchisees. It may further lay the foundation of a long-term relationship.

By becoming a mentor: Franchisor who is the brain behind the franchise system, best understand it and thus can serve to be the best mentor for the franchisees.

Attracting new franchisees: Continuous attention of the franchisor on the franchisees will inspire other aspirants to his franchise network. The franchisors working style, reputation and relation with the franchisees get transferred to the industry by the word of mouth, and through industry experts.

Identifying similar goals: Franchisors should discuss the present status of his brand and his dreams to make it big with his franchisee. This can help the franchisee in working towards similar goals.

Listening to franchisee suggestions: Franchisors should also give the franchisees, chance to express themselves. Sometimes franchisees also come up with brilliant suggestions for the franchisor to increase sales.

Giving enough time: The franchisors after providing training and support to the franchisees should give time of at least three months for conducting sales. It is advisable to provide the franchisee with a marketing plan so that he knows his progress and can work to achieve the goals.

To conclude it can be aptly said that along with expansion or increasing the franchised outlets the franchisors also need to concentrate on strengthening his existing franchisees who are the best source for generating profits and increasing sales.

Related: Renovate, innovate and propagate for biz success

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