If you’re thinking about investing in a franchise, you need to have a clear picture of what is expected of you. Below, we have outlined the primary roles and responsibilities of a franchisee and how you can execute them for long term success.
So, you like the sound of being your own boss while having the support of an established brand? Maybe you’ve started taking a look at franchise opportunites in your area? Before you go any further in your franchising journey, you should be aware of the responsibilities of a franchisee and confident that you’ve got what it takes. We’ve provided a list detailing everything the franchisor will expect from you. But before we get started, let’s remind ourselves of the franchising basics.
The basics of franchising
A franchisee is an individual who’s granted the rights to do business using the franchisor's trademark, trade name, and business model. The franchisee buys a franchise package from the franchisor for a 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.
The primary roles and responsibilities of a franchisee
The franchise role can be summarised into the four key areas below.
- To protect the brand by operating the franchise in line with the with system’s 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.
Let’s now explore these in more depth and consider how you can execute them in the best way possible.
1. Follow the franchise system
As a franchisee, you agree to follow the franchisor’s operating system. This involves adhering to the standards, procedures and practices that they outline in the franchise agreement. Doing this is part and parcel of maintaining the consistency that consumers look for in a franchise brand.
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.
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2. Uphold the brand image
One of the most vital responsibilities of a franchisee is maintaining and developing the brand image. To make sure you achieve this, you need to comply with HQ policies and get authorisation before launching marketing campaigns that you have devised on your own. Remember that the negligence or bad practice of one franchise unit can have serious, long-lasting consequences for the rest of the franchisees.
3. Control the success and growth of your business
Yes, the franchisor does provide you with the resources and support that you need to help you succeed, but this doesn’t mean you aren’t responsible for your business’ growth. While it’s important that you follow the guidelines the franchisor has outlined, make sure you take the bull by the horns and take control of your own success.
4. Manage the local marketing
The franchisor may be responsible for marketing the brand on a national scale, but it is usually down to the franchisee to promote their franchise on a local scale. This is when it can come in very handy to have existing connections in your area. Form relationships with other local businesses, sponsor events and do all you can to make sure residents know how good your new business is. In another one of our articles we have suggested eight outside-the-box marketing ideas to grow your business, so check it out.
5. Build relationships
A standard day as a franchisee involves building and maintaining relationships, whether that be with your employees, business partners, customers or franchisor.
Due to other commitments you might not be able to be present at your franchise location every day. This makes it very important to build strong relationships with your team and communicate effectively. Establishing robust relationships is also crucial for building brand awareness.
6. Reporting back to the franchisor
Communicating your needs and concerns with the franchisor is integral to fulfil your role successfully. Take, for instance, regular profit and expense reporting, which is necessary to know how and when to implement new rules like changes in pricing. It’s your job to test new polices to see how successful they are and then report back to the franchisor.
7. Financially support your business
In order to operate under the franchisor’s brand, you need to contribute financially. This includes the initial franchisee fee, equipment costs, ongoing royalty fees etc. You can also see our complete guide to franchise costs to find out more about what’s involved.
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Something to remember
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.
Enjoyed this article? We recommend that you continue your reading with the six things to know before becoming a franchisee.
Becky Martin, Point Franchise ©