What is The Role of a Franchisee in a Successful Franchise?

A franchisee purchases their franchise from the franchisor and has the license to conduct business under the franchise network’s brand name, business model and trademark.

In most cases, franchisees are also required to pay the franchisor an ongoing franchise royalty fee.

Role of a Franchisee

Franchisees have four key responsibilities when it comes to the success of the network they have joined:

  • Protecting the franchise brand by operating their business in compliance with that network’s operating standards.
  • Building a loyal and strong customer base by offering franchise approved services and products and outstanding customer service.
  • Ensuring that the business is properly staffed at all times and every employee is well trained.
  • Promoting and advertising the business and its franchise approved services and products as per the guidelines that the franchisor has provided.

What Makes A Successful Franchise?

Like any other business, there are a number of different aspects that go into the making of a successful franchise such as:

  • Willingness to learn new skills and understand how the systems work. As the manager of the franchise, you would have to don various hats such as – trainer, financial advisor, customer service expert, watchdog and more. While the franchisor and the network would set the brand standards, the learning curve could be very steep. However, if you persist, you would be able to master all these different skills in order to become successful in your venture.
  • It’s also very important to follow system standards. When you choose to be part of a franchise network, you are essentially agreeing to follow the operating system that is already in place. This also means there will be very specific requirements in terms of the suppliers you need to work with, the marketing materials you can use as well as the different services or products you must offer. There would also be very stringent guidelines when it comes to how you can use your franchisor’s intellectual property and would have to be in line with the restrictions and licensing rights. Since you will be following a ready-made operating system, you are required to report your sales and expenses as well as follow all the existing instructions related to how products and services must be presented. Each day, you are required to follow all the set procedures and protocols of your network. If you fail to meet those specific standards, it would mean that you are in breach of your franchise agreement.
  • Many franchisees have worked in large organizations in the past. They have a good idea about how to motivate staff, work within the system and understand how businesses are run. In fact, they are also familiar with working long hours. However, as a franchisee, you are a small business owner. This means you don’t have the internal support systems that you have grown accustomed to. The other benefits that you enjoy when you work in a larger company include paid sick days, retirement plans, health insurance plans, and an expense account. These are the things you would have to forgo once you decide to become a franchisee.
  • When you choose to be a franchisee, your success will be measured every single day on the basis of your business performance. This means you need a significant amount of self-reliance compared to any corporate manager. When you focus on doing your role well as a franchisee, you will also enjoy the benefit of good support from your franchisor, which contributes to the success of your venture.

If you want to know more about franchising, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form and we’ll reply as soon as we can.

Thanks for reading,
The Franchise Institute Team
1300 855 435

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