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.
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:
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.