A strong support system is critical to franchisees success

To ensure a high level of commitment from franchisees, the franchisor has to ensure that they have a strong support system in place. This will strengthen the business for both the franchisee and the franchisor and ensures that all franchisees feel comfortable about all aspects of operating the business. The only successful franchisor is the one with successful franchisees.

It is important that a franchise is structured in such a way that the franchisees need your services on a continuing basis and, consequently, will want to go on paying their franchise fee/royalty. Franchisees will then also play a positive and constructive role in building your brand. Remember that existing franchisees are the best advertisement for a brand.

Most established franchisors are and should be very strict when it comes to enforcing the core principles or standards in their brand – these are non-negotiable standards from which the franchisee cannot deviate otherwise it could result in termination or breach of contract. This is vital for the franchisor to protect his Intellectual Property and to safeguard the investment of every other franchisee in the franchise network.

There might be several non-material activities that the franchisor might allow the franchisee to change in his unit/specific location, if they are not core to the existence of the franchise or brand. However, that does not mean franchisors should have a dictatorial/autocratic approach to the business/franchisees. Most enlightened franchisors realize the most successful way to run a franchise network is by having a highly interactive and interdependent relationship with the franchisees, built on trust, transparency and open consultative communication.

Many franchisors respect and appreciate the entrepreneurial characteristics of the franchisees and welcome their ideas and innovations regarding product development, marketing ideas etc, but it is vital that these initiatives are channeled correctly through the franchisor support office, and receive the blessing of the franchisor.

In business format franchises, the franchisor will assist the franchisee with the understanding of the profitability of the business and compile benchmarks for the franchisees to compare their financial and productivity performance against as well as providing extensive training on the financial statements and prevention of stock loss, fraud etc.

Many franchisors however still focus on technical and operational support, particularly product trade name franchisors, and we know that lack of small business management and administrative skills are major reasons for small business failure. A holistic approach that incorporates both operational, business and consumer training is the answer, as:-

Training facilitates the maintenance of standards and allows the franchisor and franchisee a forum to work together and develop their relationship.
It ensures that franchisees and staff stay abreast of development and reduces the danger of bad habits creeping in.
Effective training in turn, will encourage co-operation and a mature, open relationship,
Franchisors, and franchisees, operate in highly competitive environments with demands to be more efficient and to stay abreast of latest technology – world class, superior training will differentiate the best franchise from its competitors.

This is achieved by having effective training programmes boosted by a well-trained team of field service consultants or business managers to offer ongoing business and operational support.

Free Field Service Workshop

Nedbank is offering all franchisors the opportunity to attend a free training workshop in partnership with Franchise Coaches and facilitated by Elana Koral and former FASA Chairperson Brenda Macqueen, franchise specialists and respected trainers.
This one-day workshop on the 13th May for Field Service Consultants within franchise systems equips franchise managers with a powerful set of tools and strategies to improve franchisee engagement, profitability and brand alignment.

There can be no doubt that a fundamental aspect of any franchise system is not only selecting the right franchisees but making sure that those franchisees are trained in every aspect of the franchise business – both in the initial stage and on an ongoing basis.

The success of a franchise brand lies in the ability of the knowledgeable, experienced franchisor to transfer skills to an inexperienced franchisee at the outset and then to continue to give valuable support, bench-marking and business guidance through a team of well trained and knowledgeable field consultants.

Besides the requisite technical and product support that is essential to the effective duplication of the brand’s products and services, the role of the field service/business managers also include:

The control and maintenance of standards sets the foundation for a strong franchise system and opens communication channels for franchisors and franchisees to work together and develop their relationship and work towards a shared goal.
Ensure that franchisees and staff stay abreast of developments and reduces the danger of bad habits creeping in.
Ongoing business mentoring from well-trained business managers will encourage co-operation and a mature, open relationship within the franchise group.
Franchisors and franchisees that operate in highly competitive environments need to be more efficient to stay abreast of latest technology – having a world class and effective team of field service managers will differentiate the best franchise from its competitors.