What Youíre Expected To Do as a Franchisee and How To Do It
Letís start at the beginning. What is a franchisee? A franchisee is an individual thatís granted the rights to do business using the franchisor's trademark, trade name, and business model. The franchisee buys a franchise from the franchisor for a franchise fee and agrees to follow the necessary rules and guidelines established in the franchise agreement.
For the franchisor, franchising is a great way to expand their business to meet consumer demand. For the franchisee, franchising allows them to start their own business with the advantage of following a tried and tested system with a proven track record of success. If done well, franchising is a mutually beneficial business model which can result in success and profitability for both the franchisor and the franchisee.
If youíve always wanted to become a franchisee, then there are plenty of business opportunities for you to choose from. There are currently over 900 franchise brands operating in the UK covering a wide range of industries. There are franchises available to suit all passions and budgets and is generally considered a less risky route to business ownership than going it alone.
Interested? Before you become a franchisee, you need to understand the role that youíll be expected to play within the franchise business. Your responsibilities will be detailed in the franchise agreement and to ensure that you make a fully informed decision, you should review the contract with a solicitor that specialises in franchising.
The franchise agreement is a legally binding document, and so it's paramount that you get the relevant advice before you sign on the dotted line. In the meantime, here's a summary of your role and responsibilities.
What youíre expected to do as a franchisee
Alongside paying the required franchise fee and ongoing royalty payments, a franchisee has four key responsibilities to ensure the success of their business:
- To protect the brand by operating the franchise in line with the with system operating standards at all times.
- To build a robust customer base by offering only approved products and services and by providing exceptional customer service to create trust and loyalty.
- To make sure that all employees are adequately trained to perform the job expected of them.
- To promote the franchise in their local community while complying with the guidelines or templates provided by the franchisor.
Sounds simple, doesnít it? However, as with any role, itís not just what you do itís how you do it.
How youíre expected to do it
Here are the primary attributes that franchisors look for in an ideal franchisee.
Be prepared to learn.
Not only must you be willing to learn how to run the franchise according to the franchisors' system, but you must also be prepared to learn a whole host of skills that may be new to you. One such skill is the ability to wear multiple hats when you become a franchisee. Through the course of a day, you could be expected to deal with customer complaints while mopping the floor, and everything in between. The franchisor may be in control of the majority of business decisions, but they're not responsible for the day to day running of the franchise. This is down to you, and so you must be willing to learn lots, very quickly.
Be able to follow the rules.
As a franchisee, you agree to follow someone elseís operating system. Not only this but typically youíll be signing up to adhering to specific marketing guidelines, consenting to work with a set list of suppliers while selling products or a service that you have no say over. If this sounds like too much of a compromise, and you struggle to contain your strong entrepreneurial spirit, then franchising may not be for you.
Willing to work hard
In return for the franchise fee, you get no guarantee of success. You may get all the training and support you need to be able to run your business, but you still need to put in the hard work and dedication that leads to success. Be willing to go above and beyond to please your customers and motivate your staff. As the business owner, this is your responsibility and can be the difference between success and failure.
Have a vision
Being able to see the bigger picture when you run a franchise will have a significant influence on your success. Not only should you be focused on operating your business, but you should always be aware that you're part of something bigger. You're part of a network of companies all working towards the same goal. Be ambitious too. Set goals and when you achieve them, set more.
Without the passion and drive for success, it is unlikely that youíll achieve your goals. But you also need to be passionate about the brand. When you believe in what your selling, it will be evident to both your employees and your customers. This passion is infectious and plays an often overlooked part in the success of a franchise. Of course, you donít have to love what you do; but it helps.
Is franchising right for you?
When you become a franchisee, you donít just buy the right to use a name or sell a product, but you're also investing in the franchise system itself. You don't have to reinvent the wheel or worry about coming up with an original business concept. Instead, you benefit from a system that's been proven to work time and time again.
There may well be room for innovation within the franchise you purchase, but this shouldn't be your primary reason for investing. If the business isn't run to your liking, then perhaps you should start your own instead.
It takes a particular type of person to be a franchisee, but if you're prepared to take on the role and responsibilities and perform them well, the chances of failure are much lower than if you were to go it alone.
The Editorial Team, Point Franchise ©
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