franchising aspects Nov, 07 2009

Franchisors dig deep for franchisee success

You are proud to be a successful franchisee. Why not, after all you have put in your investments and efforts to make it work. But have you ever thought the role that a franchisor plays in making your franchise a success. Let us find out.

By Pallavi Majha
Chief Sub Editor
Franchisors dig deep for franchisee success

Franchising is all about following a proven business plan. If you are running your franchised outlet successfully then to whom do you think the credit goes to? I know your answer. Most of you will say, it is me and my team. You are right because you have tried quite hard in the set-up and smooth functioning of your franchised outlet. But at the back end it is the franchisor that has made it to success. It is the franchisor to whom goes the maximum credit as the brand is his brain child. Young entrepreneurs learn the science of running the business from the franchisors and become successful franchisees. Franchisor plays the most significant role in the success of a franchisee by transferring his expertise to the franchisees. Now you all must be wondering and anxious to know the method followed by the franchisors in making franchisees a success. Here we discuss in detail.

Develops the franchise system: A franchisor first of all develops his business strategy and business model. Once that business model is a success, he starts thinking about expanding his business by transferring his expertise to his channel partners.

Select the franchisees: The next step towards making the franchisees work, is the selection of channel partners in the form of franchisees. Franchisor considers various factors while zeroing down on deciding upon his franchisees.

Prepares franchise agreement: The franchisor prepares the franchise agreements and takes care of every aspect to make the deal profitable for both the parties. He also negotiates on the terms and conditions of the franchise agreement.

Develops training module: The next most important contribution towards the success of the franchised outlets is the transfer of expertise to the franchisees. It includes:

  • Schedule: The franchisor prepares the training schedule while keeping the nature of the business in mind. The training schedule for lengthy business may range from one week to four weeks. However, in majority of the cases the training programme is for two weeks.   
  • Location: Carries out the training for the franchisees either at his franchise location or at any other franchisee’s location.
  • Mode: No matter where the training programme is being carried out the thing that matters is the mode of training. It carries some theoretical classes before the practical classes are taken. Therefore he makes it a mix of theoretical and practical classes.
  • Course material: Franchisor keeps prepares the course material for imparting training relevant to the industry. The training covers every aspect of the franchise business from setting up the franchisee to making it a success. The training module carries the instructions on how to advertise and run the business, selecting the right real estate, hiring employees and managing the finances.
  • Technology friendly: The franchisees are introduced to all kind of technologies used by the franchise. This will help the franchisees in running the business successfully. Franchisees are also trained through webinars and podcasts.
  • Staff training: Franchisor also arranges training programmes for the staff of the franchisees. This is especially required in case of new franchise or passive owners.

An extensive training program from the franchisor is essential for the success of the franchisee. Hence, checking out all aspects of the training program is critical for its success.

Monitoring the performance of the franchised store

The franchisor is not just responsible for setting up of the store but he is also responsible for the smooth functioning of the store.

With all the above mentioned information I hope now you understand that along with your efforts the franchisor’s efforts also matters a lot in the success of the franchised store.

Related: Mall culture is in

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