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Advisory 2012-04-26

Happy franchisees attract fresh referrals

Franchisees can make or break a franchise. Satisfied established franchisees may attract new franchisees while unsatisfied and unhappy franchisees may affect the reputation of the franchise. Read on to know more...

By Abha Garyali Sub Editor

A business is considered to be successful if it is well known and recognised by the business fraternity and makes regular and high profits in its dealings. Similarly, a franchise brand may become successful if it makes profits as well as shares a good reputation among other brands. Making or spoiling the reputation of a brand, to an extent lies in the hands of franchise partners. Franchisee satisfaction is thus an essential pillar of franchise success. It is imperative to keep franchisees satisfied so that they create good references for the franchisor and his company in the outside world. Learn more about the importance of franchisees satisfaction for the success of a franchise brand.

Fundamentals of franchisee satisfaction

Franchisors generally commit some fundamentals to the aspiring franchisees to attract them to become their partners. Some these fundamentals are:

  • Initial training and support, the cost of which is included in the franchisee fees
  • Two-way communication between franchisor and franchisees
  • Effective business consulting during the franchise tenure

The above stated rudiments form the basis of franchisee satisfaction. If all franchisors follow these fundamentals, franchisees will never get a single chance to complaint. Therefore, it can be said that franchisee satisfaction is in the hand of franchisors but franchisees also have to put in their best efforts for franchise success.

Importance of franchise referrals

Word of mouth is the most traditional and effective means of promotion. Products and services can take any business to newer heights but only when they are utilised. To convince people to use a particular product or service can effectively be done with the word of mouth that can make a franchise popular. More and more aspirants get impressed if franchisees speak well about the franchisor and his way of dealing with franchise hurdles. Moreover what franchisees think about the franchisor cannot be influenced by monetary incentives and other benefits promised by the franchisor. Sharing the brand name with the franchisor, it is franchisee’s business also. Therefore the basis for most referrals is the franchisee's pride in his brand and joy in sharing his success story with others. If present franchisees are satisfied and consider that the franchisor has been fulfilling all promises made by him, he would give good referrals about the brand owner and attract more aspiring entrepreneurs into the network.

Satisfied franchisees for franchise success

Franchisee satisfaction is critical to the franchise development process because it is directly related to new franchisee validation and the ability for the brand to continue to develop new stores. One great new store opening will lead to more new store openings. In certain cases it is seen that few franchisors make a blunder by not paying too much attention on their franchisees once their brand becomes successful and established. However, franchisors should keep in mind that franchisees are the foremost source of getting new franchisees in their network. Satisfied franchisees share their success and experiences with family, friends, colleagues, and many others. This praise may boost some or many of such referral to become franchisees. On the other hand franchisees, if unhappy with the franchisor can share the negative points of the brand which can surely hamper the growth of the business.

To conclude it can be said that for a successful franchise network it is essential to develop good referrals from franchisee. Considering the past success of the brand does not necessarily guarantee future accomplishments without support from franchisees.

Comment
pramod Harkut 31, Oct 2011 at 06:04 PM
I want to know How Many Investment & space required for shoe laundry
tarun sethi 01, Nov 2011 at 04:40 AM
Please povide me more information for the same
anandkumar 02, Nov 2011 at 09:42 AM
Good business I am very much interested on this, if I get chances I will do this business.
Manivannan.V.V. 10, Jan 2012 at 11:06 PM
Hi,\r\nIt seems to be an innovative concept and i wish to start up this service at chennai, Pls mail me your further details and requirements.\r\nIf there is any franchise now pls mail their contact details for chennai\r\n
Manivannan.V.V. 10, Jan 2012 at 11:07 PM
Hi,\r\nIt seems to be an innovative concept and i wish to start up this service at chennai, Pls mail me your further details and requirements.\r\nIf there is any franchise now pls mail their contact details for
David J Pyngrope 30, Jan 2012 at 02:07 PM
give me the details abt it
gaurav sharma` 16, Jul 2012 at 05:26 PM
This is very nice concept i want to start it. could you tell me how can i take its franchise.
viswanath 19, Aug 2012 at 08:46 AM
I am very keen in starting a shoe laundry and need details about the project and also the finance required to set up one. Is a loan possible? Is training available? How long does it take to understand the intricacies of the trade? Is it a profitable venture?
Interested 20, Aug 2012 at 05:44 AM
Hi,I m interested for Bhopal M.P., do let me know the investment details.
Interested 20, Aug 2012 at 05:50 AM
Hi,Would like to know the investment details
abu akhtar 26, Nov 2012 at 02:02 PM
Can you share the fine prints
D.Sekar 15, Dec 2012 at 07:51 AM
I am interested in this business , please let me know the project details , Investment and space required for this business.\r\n
Anshul 23, Sep 2013 at 11:41 AM
i am planning to go forward in this business idea, so tell me all the necessary details regarding it like area, investment, profit etc. as soon as possible
Hariharan 24, Oct 2013 at 06:02 AM
Hi, I would like to take up this opportunity. Kindly mail me the details. We shall discuss further on this. Thanks.
prashob 26, Dec 2014 at 07:52 AM
please provide me the information regarding investment,area,etc
Saji Thomas 10, Feb 2015 at 03:11 PM
Need more details like investment, brouchers etc.
navneet jain 15, Mar 2015 at 06:44 AM
i want to know how much money is required to open a fanchies for shoe laundry.
Vinod K.Gupta 17, Mar 2015 at 06:10 AM
Kindly let me have complete details. I intend to put into action early at Chandigarh which has a vast potential. It is an excellent idea please. Regards.
Justin 27, Mar 2015 at 10:43 AM
Im intrested in having the details to start something in Bangalore.
Sanjeev Bhatia 02, Apr 2015 at 08:30 AM
Hi, Pls send me complete details of the project and feasibility study. Thanks.
piyush 25, Apr 2015 at 06:21 AM
detail report.....
ssssdq 21, May 2015 at 10:29 AM
Good idea
vinod 09, Jul 2015 at 04:46 PM
Dear sir, pl send more details about project.tks Regards
Logan 06, Nov 2015 at 11:15 AM
I am interested to start this business as franchisee...pl send full details..I am in Chennai Tamilnadu India
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