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When you're considering buying a franchise, one of the most important things you need to examine is the level of support you’ll receive from headquarters.
In this post, I’m going to share why franchisor support is crucial, what types of support you should reasonably expect to get, and how to determine how good it actually is.
The Importance of Franchisor Support
The support system offered to franchisees by the franchisor has the potential to significantly affect the success of your franchise business.
Think about it. You’re paying the franchisor for their systems, knowledge, and yes, support.
The first way is through the initial franchise fee. The second is by way of monthly royalties. And paying those royalties every month serves as a reminder that you should be receiving support from your franchisor.
So, what kind of support will you typically receive?
Examples of Franchisor Support
Here are three examples of the type of support you should get from the team at franchise headquarters.
1. Operational Guidance
Franchisors typically provide ongoing support in areas like inventory management, human resources, social media/local marketing, and customer service.
Getting guidance and support in those areas of your business can make a significant difference in your day-to-day operations.
2. Problem Resolution
Challenges will inevitably arise in any business, franchise or not.
That said, it’s important for you to know how supportive a franchisor is when you’re experiencing problems. Especially ones that need to be addressed immediately.
For example, what if you own a retail franchise and your floor traffic has been steadily declining for the past few months? When you call headquarters to share your drop in foot traffic, do they quickly respond and offer specific ideas on how to increase traffic to your store?
3. Marketing and Advertising
When you buy a franchise, one of the things you’re paying for is the company’s marketing expertise. That includes providing advertising templates for you to use, along with social media marketing help...and more.
And since you’re probably new to this, and to their brand, you need to be able to get support via phone or email quickly, especially during the work week.
Note: The FDD contains essential information about the franchise system. Pay close attention to the section on franchisor support, as it outlines the actual assistance they’ll provide.
Additionally, specific information on the level of support offered by your franchisor can be found in the franchise agreement (aka your contract).
But how can you assess whether support from franchise headquarters is good?
Assessing Franchisor Support
Now that you’ve seen a few of the things a franchisor normally provides support with, let's see how you can quickly evaluate whether or not the support from the franchise you’re interested in is good. Better yet, is stellar.
With that in mind, I’ve found that the best way to get this important information is by talking to the franchisees.
In this case, you need to ask them about their experiences with headquarters when they ask for help with their business. Their insights are invaluable.
Here are a few questions you need to ask:
1. Is it easy to reach out to the franchisor for guidance when facing challenges or seeking advice? And how long does it normally take for someone at franchise headquarters to respond to your request for help?
2. Are issues resolved the first time, or has it taken you more than one call/email to get your problem resolved?
3. How eager is the staff to help you? Do they have a good attitude? Do they go out of their way to help you? Do you feel confident when you have a problem someone on the corporate team will provide a fix?
Questions like those will help you get a feel for the type of support you can expect to get if you become a franchisee.
Field Support
Some franchisors provide field support.
This is where representatives from the franchise company visit and spend a day or two at your place of business. If the franchise company you’re looking into offers it, get specifics on how their process works.
For example, do franchise representatives make regular visits, or is it by request-only? And is there a cost involved?
Finally, I’ve found that field support can be invaluable for on-site guidance and problem-solving. So, if it’s offered, take advantage of it. It’s another way to get a leg up on your business’ success.
In Closing
Evaluating the support system of a franchisor is a critical step in your journey to becoming a successful franchisee. But know this.
The level of support you receive can vary widely between franchises, so it’s a must for you to do thorough research.
That includes reaching out to current franchisees, so you can ask specific questions about the support they’re receiving from headquarters.
To that end, asking the questions I supplied above and carefully considering the answers you get will help you assess the quality and comprehensiveness of the support you can expect to receive from your franchisor.
Because with the right franchisor support, you'll be better equipped to achieve your goals of owning and operating a truly successful business.
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.