As a franchisor, it's hard to forget how much the success of your business is dependent on the success of your franchisees. When franchisees feel supported, they become strong advocates for partnering with your brand. Word-of-mouth support from franchisees is often more successful than any marketing campaign in enticing new franchisees to join your business. It can drive your franchise operations to success in previously untapped markets. Make sure your franchisees stay committed to and enthused by your joint enterprise by guaranteeing a comprehensive franchise support system.
Put a Support Plan in Writing
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Any support you plan to provide franchisees should be outlined in the contract you make with them. That way, your franchisees will know exactly the level of support to expect before they start running their business. This minimizes any disagreements later down the line about inadequate support. If your franchisee has agreed to a small level of support, then that's what they agreed to and there won’t be any discrepancies. However, please don't forget that your franchise's ability to grow is dependent on the success of your individual franchisees. Offering minimal support typically isn't in anyone's best interest.
How to Best Support Franchisees
Some of the most successful franchises in the world provide their franchisees a support system that gives them the tools necessary to succeed. This support usually operates on two levels: regionally and nationally. For example, a franchisee will benefit from the national marketing strategy of the brand they've partnered with and will receive regular visits to their local site.
Before a franchisee's site opens, a franchisor should provide adequate training on all aspects of the business to give them the tools for success.
This training should inform your franchisees of how your organization is normally structured in the individual franchises. Training must include tools on how to manage finances and marketing, as well as all other aspects of the business. Training can't be a one-time thing either. Reputable franchisors offer franchisees regular refreshers to keep them up to speed.
The most successful franchises in the world allow franchisees to use their national marketing resources for their individual franchise locations. Marketing components like graphics, logos, menus, and ad campaigns that run nationally must be made available to each individual franchisee so they can use them to improve their business.
Ongoing assistance involves offering the franchisee access to in-house consultants, such as business development consultants or regional promotions experts, to further the success of their business. That requires a very solid internal structure on the part of the franchisor. Smaller franchisors can offer ongoing assistance by conducting regular site visits and providing a point of contact to whom the franchisee can reach out with any concerns or queries.
If you command respect and loyalty from your franchisees, you're set to reap great financial gains. Supporting your franchisees is one of the best ways to set up your franchise business for long-term success. The profitability of each individual franchise means better royalties for you, so make sure you know to how to manage franchise owners responsibly — and when you reap the gains, use cutting-edge royalty calculation software.