disadvantages of franchisor
The success behind any franchise services is the strong relationship that the franchisor shares with all the franchisees. In a franchise business, there are two parties – one the franchisor, the owner of the brand or the company and the other one is the franchisee who has bought the rights from the franchisor to use the trademark, logo and business module of his business.
It is the franchisor that start franchise network in specific area’s to operate a business using the established business system. The franchisor has many roles in ensuring the success of any franchise business. Here is a list of the responsibilities of a franchisor:
To develop successful business system: It is the sole responsibility of a franchisor to develop a business system to start franchise network that works, is simple to follow, and profitable for the franchisees. Any franchise services should be very easy to follow so that franchisees can learn the details of running the business successful in a short time.
An updated franchise system: To be considered as best franchise opportunities in the industry, a company or brand most follow the latest business trends. Thus, it becomes important for a franchisor to ensure that the business system is updated on a regular basis to keep up-to-date with the competition, technology, and economic changes.
Analysis of functionalities of franchisees: The lifeline of any best franchise opportunities depends on how well the franchisees are following the business system. If a franchisee does not follow the system, it must be dealt with immediately. One wrong step by any of the franchisee may affect the image of the overall brand.
Provide leadership: A franchise network is like a parent-child relationship where the parent provides guidance to the child at all possible times.
The franchisor/franchisee relationship is no different. The franchisee seeks guidance from the franchisor to ensure success in the business and the franchisor must take all possible steps to pass on the knowledge and experience to the franchisees.
Establish a brand identity: Branding is what will make any best franchise opportunities stand out. It is the responsibility of the franchisor to enhance the company’s identity through proper branding. Right branding will help in making the product or service recognizable amongst the target audience. If the brand suffers, the entire franchise system suffers.
Find qualified franchisees: It is not the right business strategy to award franchises to any investor. Franchises must be awarded to qualified individuals who have the qualities to ensure the success of the franchise system. This is the responsibility of the franchisor to find out suitable investors to start franchise network in an area, who will help in enhancing their business identity.
Proper communication strategy: Communication is the most essential aspect behind the successful relationship between the franchisee and franchisor. Without good communication strategies, any franchise services will not survive. It is the duty of the franchisor to update the franchisee with new ideas, marketing, or updating the franchise manual.
To conclude, if the above mentioned responsibilities are carried out properly by a franchisor, nothing can stop in making the franchise business successful.