Key to Becoming a Successful Franchisor
Selection of Franchisees
The most crucial aspect of becoming a successful franchisor is the careful choice of franchisees, as they are the ones who run the extended business and have the effect of the success of the franchisor. A good franchisor doesn't believe in quantity but quality. Therefore, he believes within selecting few financially, emotionally and professionally sound franchisees for that business. A smart franchisor not only earns revenue via franchise fees, but also generates income in the type of commissions from suppliers with whom the franchisees do the company.
Process Management
Successful franchisors believe in process management. They know just of their business, right from production to sales from the product. They not only monitor the process, but also take important decisions every once in awhile, as franchising business is under constant evolution. They also know the significance of training and supporting the franchisees and are always prepared to help them whenever they are in need.
Franchisee Assistance
Many times, franchisees lack financial strength and in this kind of cases, a good franchisor steps ahead to help the actual franchisee. Helping in getting bank loans sanctioned, assisting in planning the company, etc., are a few ways by which a good franchisor causes it to be easier for the franchisee. Other kinds of support such as site selection, training, developmental services and assisting in advertising will also be provided to the franchisee so that a trustworthy relationship is made between the franchisor and franchisee.
Franchisee Relations
A healthy franchisee-franchisor relationship is essential in a franchising business. Trust and respect for one another helps in strengthening the relationship. Even though, the business is defined with a contract, a franchisor realizes that his franchisees can help in recruiting reliable franchisees later on. He also maintains transparency and proper communication so that there's no confusion between the two parties. Successful franchisors believe in settling disputes amicably so the business alliance is not hampered in any way.
Correct Marketing
Marketing or brand visibility is very crucial for business to complete well. Franchisors not only use strategic marketing tools for themselves but also help their franchisees in marketing their business. The mission and vision of the business isn't just shared with the employees, but also with the franchisees so they consider themselves a part of the parent company and never a separate entity.
Maintain Uniformity
Maintaining uniformity in the franchise business is another opportinity for creating brand awareness. Uniformity helps customers to quickly identify and relate to a particular service or product and this is something that a smart franchisor knows perfectly. Uniformity also helps in getting clean chits during audits as well as inspections thereby, increasing the chances of success.
Standardizing Product sales
A standardized sales process helps in keeping a report of sales and answering franchise inquiries on regular foundation. Using standard application forms, checklists and timelines is essential for complying with the legalities of the business and attaining success.
Intelligent Expansion
The success of a franchisor also depends upon his expansion plans. If the plans are such which personnel and finances are insufficient, it is obvious how the expansion plan would fail. A franchisor should therefore possess a systematic and detailed expansion plan. It is better if the expansion is restricted to a particular market at any given time so that all the available resources can be utilized for this.
Broker Relations
A healthy relationship with franchise brokers helps in acquiring good franchisees for that business. The job of a franchise broker is like that of a realtor wherein, he brings a franchisee willing to get right into a contract with the franchisor and charges brokerage fees for that same. A smart franchisor develops a vast link of franchise brokers who assist in the expansion of the business.
For successful franchisors, their integrity matters to them the most and they don't step back from doing what is right for the company and franchisees. They know that they have selected the franchisees and don't blame them if anything goes wrong. Now that you understand how to become a successful franchisor, pull up your sleeves as well as climb the ladder of success, if you think you've it in you. All the best!