Things You Should Expect From Your Franchisor

date icon 5 minutes to read date icon 29th August, 2022

Entering the world of franchising presents an exciting and lucrative opportunity to be your own boss while having all the support systems in place to ensure your business takes off. In fact, one of the major selling points of any franchise is the franchise support they provide to prospective franchisees. This support is critical to their success and future business development and is a vital component of the franchisor’s unique value proposition. As you consider various franchising opportunities in front of you, franchise training and support should be high on your list of priorities. But what types of support can you expect from your franchisor and what is its relationship to the franchising model? We take a closer look.

business model explanation on a white board

Franchise model definition

The franchise business model can be thought of as a series of systems and processes that are put in place by a franchisor for others to follow in their footsteps and replicate their success. This is done by enabling the franchisee to use the franchisor’s intellectual property and other factors that make up the franchise model.

Since it is in the franchisor’s best interest to see their franchisees succeed, it is important for them to offer a wide range of support to them. This will ensure the well-being of the entire franchise network, the franchisor and the franchisees themselves.

What kind of support does a franchise provide?

The franchise support system across different franchisors may vary slightly on a case-by-case basis, but in most instances, it is similar throughout the various industries. The levels of support that a franchisor provides franchisees will depend on the market sector in which they operate. But in general, most franchisors have one thing in common. And that is the support that includes induction and ongoing training, on-site help, branch visits, conventions, newsletters and more. We take a look at each of these to help you better anticipate what you can expect from your franchisor.

Training

Although most franchises don’t require previous experience in an industry, in order to ensure you are up to speed with their systems and processes, training is provided during the induction phase.

female franchise representative performing an induction training

This training can last anywhere from a couple of days to several weeks or even months. Yet the purpose of this training is crucial. This is the time when you’ll get up to speed on how the business operates, what you need to put in place, how you need to run your business for optimal success and more.

Training is usually provided at the franchisor’s head office by specialists who are involved in business and franchisee development. Sometimes training will be hands-on whereas other times there may be theoretical training through webinars. Yet other times it can be a combination of both. Either way, your franchisor wants you to succeed and this training is an essential part of that success.

Site/location selection

Many franchisees operate within specific and geographically defined territories. One of the reasons for this is that there’s a more equitable distribution of the client base and that there’s no cannibalisation and competition among franchisees, enabling them to thrive. However, site location is crucial in this matter and without any prior experience, you may struggle. This is where the franchisor comes in. They will help to ensure that your site is accurately selected with the right amount of business opportunities within it for your success.

Financial assistance

Financial assistance is another area where you can get help from a franchisor. However, it must be remembered that not all franchisors offer it. Financial assistance refers to preexisting relationships formed with lenders who can help you get the financing you need to get your franchise business off the ground. This usually amounts to around 70% of the total amount and you will also be required to present a business plan, which your franchisor can help you develop and create.

Marketing and advertising

Franchise marketing support is crucial for ensuring that the franchisor’s brand is consistently represented throughout the industry.

a group of colleagues discussing marketing strategy

Brand dilution can happen if every franchisee markets according to their own criteria. Uniform guidelines established by the parent company and then applied by them for the benefit of the franchisee network are essential to ensuring a strong reputation in your sector.

Ongoing assistance

If you thought that you’d only get training at the induction stage, you’d be mistaken. Typically, franchisors also provide ongoing assistance to their franchisees in order to ensure their success. This ongoing assistance is crucial whenever a franchisee faces challenges that they’re struggling to overcome and the support from the head office in helping with this is crucial.

Support from other franchisees

As a franchisee, you also benefit from the entire support system provided by the network of franchisees. Since they are not competing directly with each other, it means that your success is their success and they want to see you grow.

group of franchisees on a conference

No other business model offers the ability to sit down and discuss challenges and potential solutions than a franchise business model. Hence, the support and communication you’ll have with fellow franchisee partners are crucial to your success, too.

Annual meetings and conferences

And of course, to keep the entire franchisee network in the loop and on top of the business’ strategic goals, the franchisor can also hold annual meetings and conferences during which all parties gather together to discuss and strategise on the way forward. These meetings are highly beneficial because this is where idea sharing and exchanges take place, as do solutions to problems, ways to develop the business further and so much more.

Final thoughts

Your success as a franchisee is your franchisor’s success. And they will do everything in their power to ensure that your business takes off and thrives. This support system is crucial in the franchise business model and it is one of the reasons why it is an important part of the franchisor’s value proposition when it comes to recruiting new franchisees. When doing your due diligence into franchising, make sure all your questions about support and training are answered so that you have fuller expectations and a clearer understanding of what you can expect from your franchisor for the investment you’re making.