So now you are a Franchisee – making the most of your franchise business.
There is a saying in franchising “you are in business for yourself but not by yourself”. As a Franchisee, you independently own and operate your own business within the Franchisor’s framework, but you have the support of a Franchisor which should include:
- the benefit of a brand, a reputation and goodwill, which are already established.
- initial and ongoing support of the Franchisor.
- Assistance with finding a suitable site or territory and then shop fits, product mix, equipment etc.
- the benefit of initial and ongoing training for your staff.
- assistance with setting up your systems and getting ready to start trading.
- the benefit of some form of advertising and marketing which is tried and tested.
- the benefit of the Franchisor’s operational/field staff to assist with problems that arise.
- the benefits of developments and improvements in the system (which you can contribute to as well).
On the flip side, as a Franchisee:
- You will be subject to operating within the system i.e. using the Franchisors business format.
- You will be paying ongoing fees to the Franchisor for the support and services provided.
- You will need to be doing everything right to have the right to renew the term of your franchise agreement.
- You will need to obtain the Franchisor’s consent to a sale of your business and the new incoming Franchisee must fit the Franchisor’s selection criteria.
So to make the most of acquiring your franchise business you need to focus on the following:
- Accept the disciplines of the franchise system.
- Don’t be complacent even though you are your own boss in your franchise business, there is still risk in the business undertaking – work hard and give it your all.
- Be patient and understand that it takes some time to become established, build your business and make the profits you want. There may be losses for some time – make sure you have enough working capital to get through this period.
- Do not think that you know more than the Franchisor or know best and stop following the system.
- Ask for help from the Franchisor if you need it; ensure you have the ongoing support of family.
- Be a positive active Franchisee, participate and attend franchise meetings and conferences and have your say.