🕒 Estimated Reading Time: ~4 minutes
When you buy a franchise, you’re investing in a business that already has business systems in place to help you operate it successfully. It’s part of what makes franchising great. But what else should you expect to get from your franchisor?
Let’s find out.
When Does the Relationship Start?
Before finding out what to expect, it's helpful to know when you should begin having expectations. The franchisor-franchisee relationship begins when you pay the initial franchise fee. That gets you "in."
And once you’re in, there are certain things you should expect to get from the franchisor. Especially since you’ll be sending a monthly royalty check to franchise headquarters...for the life of your franchise agreement.
With that in mind, here are three main things you should expect to get from your franchisor.
<div class="_form_1"></div><script src="https://franchisedirect52345.activehosted.com/f/embed.php?id=1" type="text/javascript" charset="utf-8"></script>
The 1st Thing to Expect From Your Franchisor
The first thing your franchisor should be giving you is good support.
But what does good support mean? This example should help.
Franchisee: “Hi, this is Jim Bradshaw in Memphis. My POS (Point of Sale Terminal) Terminal keeps shutting on and off by itself, and I’m doing a huge local promotion today. Can you help me fix it?”
Franchise headquarters representative: “Wow! That doesn’t sound good. Let me get you over to someone in our IT department right away.”
Franchisee: “Thank you.”
IT staff member: “Hi Jim. I understand your POS terminal is acting up. Let’s see if I can fix it for you right away.”
Franchisee: “Thanks. I need this to work right today.”
The problem was resolved five minutes later. That’s how support from your franchisor should work.
Note: That’s how your franchisor should respond and support you in a perfect world.
But the world’s not perfect. You may need to be patient until a fix can be made in a situation like the one described. And some issues do take longer to resolve.
My point is this: Support from your franchisor should be as fast as reasonably possible and good.
The 2nd Thing to Expect From a Franchisor
Innovation. Your franchisor should always be thinking about how they can improve their offerings and come up with new ones.
Why? Because doing so keeps things fresh and can offer additional profit opportunities for franchisees.
A great example of an innovative franchisor is McDonald’s. Think about how many new products they’ve introduced over the years.
That said, while all of their innovations haven’t been game-changers for McDonald’s franchisees, some of them have. Like their double drive-thru concept. And speaking of potential game-changers, Taco Bell’s new restaurant design will include four drive-up windows. Do you think that will increase revenue for franchisees? I do.
Finally, when you’re doing your research on franchise opportunities you’re interested in, you need to ask company executives about what they have on the horizon. It’s a terrific way to find out how innovative they are, and to see what your own franchise business may be offering in the near future.
The 3rd Thing Your Franchisor Should Provide
Your franchisor needs to provide top-notch technology for its franchisees.
Why? One reason you need to have access to great technology is to remain competitive in your space.
For instance, if you own a pizza franchise, your online ordering system needs to be fast, easy to use, and have the ability to handle lots of customers during peak ordering times.
Remember, today’s consumers are impatient. Any delays, for whatever reason, can cause a customer to leave your website or App in a snap, and spend their money elsewhere. In this case, at another pizza restaurant.
In addition to online ordering technology, the marketing technology that comes with your business needs to make you money.
For example, does your franchisor provide a way for you to capture customer emails and phone numbers that can be used at a later date for promotions and follow-up? I hope so. Because your competitors offer it.
To summarize, there’s a lot you can find out about what a franchisor provides to franchisees before you invest in the franchise of your dreams.
As noted above, great support, continuing innovations, and first-rate technology solutions can go a long way in helping you succeed as a franchisee.
The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.