8 tips on how to manage franchisees
- 1. Practice open communication Practicing open communication may sound like the number one thing to do in the world’s most obvious to-do list. ...
- 2. Treat franchisees with respect ...
- 3. Be a pillar of support ...
- 4. Create a genuine connection ...
- 5. Deal with conflict smoothly ...
- 6. Start with a thorough onboarding process ...
- 7. Perfect your hiring system ...
- 8. Provide the right tools ...
What do I need to know about starting a franchise?
- Set Realistic Goals. Franchising is more of a marathon than a sprint. ...
- Research Your Competitors. ...
- Develop Your Franchise Offering for Both Individual and Multi-Unit Sales. ...
- Make Sure Your FDD Is Compliant for Every State. ...
- Learn Franchising and Get Involved in the Franchise Community. ...
How to build a successful franchise?
When preparing for your big day, a few tips can help make it a success:
- Choose a date with high traffic. Your opening date and time should be ideal for attracting as many people as possible.
- Advertise to your local market. ...
- Send press releases to local media outlets. ...
- Invite friends, family and city officials. ...
- Decorate the store with grand opening paraphernalia. ...
- Organize exciting activities on opening day. ...
How is the process in a franchise?
The Process
- The Process. When you’re ready to launch your franchise, we’ll assist you every part of the way. ...
- Expansion Markets. The demand continues for thorough, professional home inspections, and promising franchise opportunities currently exist throughout North America.
- Locations Available. ...
- Established Businesses for Sale. ...
- Our Ideal Owner. ...
How to determine if a franchise is successful?
- What are your reasons for wanting to own a franchise? ...
- Are you driven by financial earnings? ...
- Do you mesh well in the corporate environment? ...
- Do you enjoy working hard, even if the reward seems distant?
- Are you independent? ...
- Are you a risk taker?
- Do you generally have a positive outlook toward your endeavors?
- Do you consider yourself to be a “people person”? ...
What are some challenges faced by franchisees?
The 7 Most Common Franchise Problems (And How to Solve Them)Long approval processes. The franchisor and franchisee are a team. ... Higher-than-expected operating costs. ... Less control over the brand. ... Not as much decision-making power. ... Different regulations. ... High employee turnover. ... Potential for brand dilution.
How do you manage a franchise owner?
10 tips for effective franchise managementCommunicate effectively. If you want your franchisees to emulate your success, there needs to be effective communication with them. ... Provide training. ... Lend support. ... Conduct trials. ... Audit franchises. ... Have clear goals. ... Recognize and reward. ... Get feedback.More items...•
How do you manage a franchisee?
Rich offers these six tips for managing a franchise:Follow the proven system. ... Hire the best people and treat them right. ... Delegate to your employees. ... Use what your franchisor gives you. ... Manage your time efficiently. ... Acknowledge the fact that you will likely need franchise mentoring and assistance.More items...•
How do you build trust with a franchisee?
Blog#1 Make sure that your business is stable and that you focus on franchisee operations' profitability. ... #2 Ensure that your franchisees get a clear picture. ... #3 Branding and strong marketing matter a great deal. ... #4 Ongoing training and constant support. ... #5 Strong network with stores in various locations.
What is franchise strategy?
Put simply, a franchise strategy is a road map that gives your business direction by: outlining objectives. helping you to understand the landscape in which you operate. mapping tactics to achieve your goals. planning for any potential obstacles in the road.
How do franchise owners get paid?
How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.
What is the owner of a franchise called?
A franchisee is a small-business owner who operates a franchise. The franchisee pays a fee to the franchisor for the right to use the business's already-established success, trademarks, and proprietary knowledge.
What are the keys to franchise success?
Below, we've listed 10 keys for franchise success.Make sure you have enough money.Follow the system.Don't neglect your family and friends.Be an enthusiastic franchisee.Recruit the best and treat them with respect.Teach your employees.Give customers great service.Get involved with the community.More items...
How are you going to manage a franchise conflict as a franchisor?
Franchisors need to be transparent and keep franchisees informed of any developments within the business; while franchisees need to voice any concerns as they arise. Clear and regular communication, as well as greater emphasis on notions of equity, works to engender trust between the parties.
How does a franchise relationship work?
The franchisor owns the trademark(s) and the operating system for the franchise. The franchisee is licensed to use both the trademark and the operating system according to the terms and conditions set forth in the franchise agreement. Both the franchisor and franchisee must fulfill their obligations under the contract.
How do you ensure a good relationship with the franchisor?
Open Communication and Trust As in any relationship, honest, clear communication is the foundation of a strong franchisor/franchisee relationship. This means sharing best practices, honest feedback, and ideas for future innovations.
How do you initiate a relationship with a franchisee and a franchisor?
How to manage franchisor-franchisee relationshipsGetting to know your franchisees and what their needs are. ... Taking time to listen to them and hearing their opinions.Stay in touch with franchisees over time.Congratulating them on achievements.Offer ongoing support and follow-up engagements.More items...•
What are the responsibilities of a franchise owner?
Franchisee ResponsibilitiesPaying the franchise fee and paying royalties to the franchise to help run the larger business.Finding, leasing and building out a location for the franchise. ... Hiring and training employees. ... Running the business according to the standard expected of the franchisor.
Do franchise owners have to do anything?
What are the Responsibilities of a Franchise Owner? Both franchisors and franchisees must work hard in order to maintain a solid, profitable business. As with any business, it takes a team to manage long-term strategies and day-to-day operations effectively.
What do you call a franchise owner?
Key Takeaways. A franchisee is a small-business owner who operates a franchise. The franchisee pays a fee to the franchisor for the right to use the business's already-established success, trademarks, and proprietary knowledge.
Can a franchise owner be fired?
While franchisees are not technically employees of a franchise brand, they can be “fired” by franchisors, who reserve the right to terminate their contract “for cause.” This involves ending the relationship based upon a default under the franchise agreement.
What is a franchise?
A franchise is a business where the owner or franchisor allows a franchisee to access the business knowledge, trademarks, and processes. The franchisee can then sell a service or product under the franchisor’s business name. When starting a franchise, usually the franchisee will pay a start-up fee and annual fees, depending on the set-up.
The stages of the franchisor-franchisee relationship
Your franchisor-franchisee relationship is a long one. Similar to a marriage, it should be built on trust and commitment from both sides of the party. By exploring the different stages of this unique relationship, we can look to determine where along the franchisee journey has the greatest impact on the overall success of the franchise.
3 must-have skills for franchise management
As a franchise owner, your days are spent managing your business and taking a deep overview of your business. At the same time, you utilize your personal skills to maintain good working relationships with your franchisees. While franchising is about growing your business; at its core, franchising is about relationships.
8 tips on how to manage franchisees
Running a franchise with a large network is stressful; that’s no surprise. Although you may demand a lot from your franchisees, with plenty of support and training, most franchisees can find success running their own business. Good franchisors set the tone for communication and management.
In summary
The unique relationship between franchisee and franchisor is crucial to the success of your business. Supporting your franchisees is a delicate balance of being present while also not interfering with the day-to-day operations.
How to be successful in franchise?
Communication is the key to success. Make sure you’re checking in regularly with your franchisee. Meeting in person will give them the opportunity to share any of their concerns or questions.
What are the different stages of the franchisor-franchisee relationship?
When entering a franchise agreement, both parties should have a clear understanding of one another. In order to achieve success, goals should be set clearly, and early on. As a franchisor, you’ll be responsible for communicating the mission, goals and vision of your business to the franchisee. In the franchisor-franchisee relationship, there are four different stages:
What is the most important stage in franchising?
The recruitment stage is arguably the most crucial, and honest communication is extremely important between parties, even as both try their best to impress. This is the point at which a franchisor should set expectations, and a shared desire for success and profitability should be communicated.
Is franchise underperformance unusual?
While running a franchise within a larger network can be stressful, and might demand a lot from a franchisee, underperformance is unusual. With plenty of training and support on hand, most franchisees are able to find success running their businesses. In fact, 93% of franchisees claimed profitability in 2018 [British Franchising Association].
What are the problems with franchises?
Here are a few issues you could run into as the owner of a franchise business: 1 Equipment failures/malfunctions 2 IT/software-related issues 3 Low customer foot traffic 4 Product/service complaints 5 High employee turnover
What is a franchise advisory council?
FYI: A Franchise Advisory Council is a committee of fellow franchisees who work with the franchisor (and other franchisees) to help improve the system and solve common issues and concerns.
What to do if you can't get help from an executive?
Finally, if you can’t get help from an executive of the company, reach out to the CEO. She needs to know what’s going on. And she has the power to help.
What to tell your boss about the bottom line?
Explain what’s going on-in detail, and make sure you tell them that the bottom line is that it’s affecting your bottom line. (And theirs, since the money they get from you is based on your revenue.)
Is franchising a perfect business?
And franchisors aren’t perfect. Stuff happens. As an owner, it’s up to you to get things resolved, so your business can run smoothly and profitably.
Do franchise owners run into problems?
Occasionally, franchise owners run into problems running their businesses.
Can you ask a franchisor for help?
That’s right. If you want to get help from your franchisor with a problem you’re experiencing, you need to ask for it nicely.
How many rules do franchises have to follow?
In view of that, let’s take a look at the 8 rules all franchisees need to follow.
What is franchisee signage?
That means in-store signage along with outdoor signage containing the brand’s colors and their logo. 5. You’ll only be able to sell products and/or services that are stated in the contract.
How long is franchise training?
Training usually lasts a week or so. 3. You’ll be required to follow all the rules and procedures contained in the 300-500-page franchise operating manual.
Do franchises have to attend training?
You must attend formal training (which normally takes place at franchise headquarters) before you open for business. What is more, you’ll be responsible for paying all of your travel expenses, and if someone from your staff is required to attend training, you’ll have to pay their expenses, too.
Do you have to pay royalties to a franchisee?
7. When you’re a franchisee, you’re required to pay royalties to your franchisor for the length of your franchise agreement.
How much does it cost to franchise a restaurant?
Here are the expected up-front investments for getting a franchise off the ground for some popular restaurants, according to Franchise.com: 1 Subway: $106,000 - $394,000 (franchise fee of $15,000) 2 Dunkin’: $430,000 - $1,750,000 (franchise fee varies per location) 3 Chick-fil-A: $265,000 - $2,300,000 (franchise fee of $10,000) 4 McDonald’s: $1-$2 million (franchise fee of $45,000) 5 KFC: $1.5-$2.7 million
What software do franchisors use?
Additionally, you’ll also benefit from the resources available to you within your larger restaurant group. For example, many franchisors require all of their locations use an employee scheduling software like 7shifts that helps them schedule with ease and avoid breaking fair workweek laws.
Why are restaurants so high turnover?
Among the reasons for such high turnover is the constant demand for employees at these restaurants (which allows dissatisfied employees to easily find work elsewhere) and the reliance on younger and less specialized labor pools, which typically have less incentive to stay at a franchise for years on end.
What is 7shifts?
7shifts is the all-in-one labor platform built for restaurants to simplify employee scheduling and labor management. Easily manage your teams’ schedules, timesheets, communication, tasks, tips and more– all in one place with 7shifts.
Why is Chick Fil A so popular?
You could come up with a list of reasons as to why this is the case, but one of the more prominent ones is that Chick-fil-A operates one store for about every six McDonald’s or Starbucks, and about every 12 Subways. Because there are fewer stores, each Chick-fil-A becomes more unique, and by extension, draws more of a crowd to that specific location.
How to avoid a customer issue?
The first step to avoiding this issue is to hold yourself to the highest possible standards of service. That way, if an issue arises at a different location that you’re not directly affiliated with, your loyal patrons could see past it.
Why are multi-location restaurants under a close eye in the media?
Multi-location restaurants are under a close eye in the media because of their presence nationwide, which means a slip up by one individual at one restaurant, big or small, could impact the perception and performance of hundreds or even thousands of other locations .
