An excellent idea resulted in a successful new business. Expanding the business is the next big step. One way to expand is to franchise. While working through all the details that come with franchising a business one major thing to consider is: How much and what kind of support will you, the franchisor, give the franchisees?
After years spent designing, creating and branding, your business is bundled and ready to sell to a willing buyer looking for a proven business model. To be successful, though, franchise customers need to have the same experience at each and every location that bears the business’ name.
Support can come in many different ways: field support with on-site visits, the development of new products, assistance with advertising and marketing, purchasing programs, and assistance with administrative systems (payroll, billing, collections, etc.). Each one of these options may require staffing by the franchisor.
Visiting franchisee sites is crucial to confirm the running of the franchise and to protect the brand. There are multiple categories of field representatives. The number of staff required will depend on the kind of business; one representative may be able to handle several categories.
- Field Trainer – trains franchisees about new products, new technologies, and new systems while also conducting refresher training on the franchise standards as needed.
- Quality Control – verifies the product is up to the standards set up by the franchisor and makes corrections where needed.
- Operations Consultant – helps franchisee with the running of the business, observes where there may be issues and makes recommendations
- Marketing – recommends how the business can increase revenue through advertising and marketing
Developing New Product
No matter how popular a product is, there comes the point in time when the fickle consumer moves on to something else. Coming up with new products that fit into the franchise is the sole responsibility of you, the franchisor. Introducing new products is one way to keep the public interested in the business. Although this is up to you that doesn’t mean franchisees can’t have some input. By dealing with the public on a daily basis, franchisees can pass onto the franchisor information on items the public has been requesting. A good working relationship between the franchisor and franchisee in this area is a win-win situation.
Franchisors need to control the advertising to have a consistent presentation of the business to the public. Developing the design and type of advertising is a must. Franchisors will want the advertising to have a certain look, and most franchisees do not want to develop their own. Building strong advertising and marketing campaigns for the franchisee helps them grow their business and be more successful.
The power a franchisor has to negotiate prices for products or services required by the business is a great benefit to the franchisees. It benefits the company as a whole for the product to be consistent from location to location. If the business is selling products uniquely developed by the franchisor, then a purchasing program is a must. A sound purchasing program can have a direct impact on the profitability of the franchisee.
These are only a few of the areas where you can help your franchisees flourish. Not all franchises require all of these programs and some franchises will require more. Franchising is not for the faint at heart, but with proper planning and the goal to make every franchisee a success it can be very lucrative for the right business.
For information on franchise territory mapping, contact Geometrx at 888-848-4436.