As an aspect of governance, accountability is the acceptance and acknowledgement of responsibility. In a franchise environment, accountability protects the franchise system from internal and external vulnerabilities by applying checks and balances.
Having the perception that branding is all about a nice-looking design, logo or store design is one of the most common misconceptions. In truth, branding is actually more relevant to a business’ strategy.
As with other consultants in their own field, a franchise consultant would have in-depth knowledge or unique understanding of franchise-related issues that could otherwise be elusive to others.
Whether as a business owner or prospective franchisee, it is important to fully understand what franchising actually means, and consider whether the potential disadvantages that come along with it are acceptable.
Most people start evaluating franchise concepts without knowing exactly how or what to look at, and also perhaps only looking at whether the franchise concept matches their requirements without thinking if they themselves are a fit for that particular franchise.
Usually the biggest angst, for the franchisor, in deciding these fees revolves around the franchisee and the on-going royalty. In the absence of any logical methodology, the company resorts to either copying others in the market or making the decision arbitrarily.
Business owners who simply jump into franchising without sufficient preparation and think they can react in time when the situation arises, might be playing a dangerous game.
The biggest attraction of joining a franchise is that the franchisor provides mentorship and guidance. From the initial setup phases to operations, franchisees will be taught the “right” way of doing things.
Franchising a business means to replicate the business offerings, including the overall look and feel of the brand. But it isn't just down to franchisees to ensure that they follow the guidelines that franchisors provide.
Franchisors play the role of a leader, there are no two ways about it. The franchisor has to lead a group of people towards success and the type of leadership displayed will surely make or break the system.
More than simply putting collected information together, the manual is a step-by-step directive that guides the reader on how to replicate a certain franchise concept and its operations and should be the first point of reference in relation to operational aspects.
Prospective franchisees who know what and how to highlight their desirable traits could find that they may have a larger bagaining chip when negotiating their contract with the franchisor.
The launch of a new franchise unit is a big moment for the franchise organization. During this period, franchisor and franchisee each have a critical role to play towards a common objective of, as a minimum, operational break-even or even profitability.
Other than the initial franchise fee, franchisees will be required to make some sort of on-going franchise payments to the franchisor on a periodic basis. However, the reason for the outflow of these payments may not necessarily always be clear.
Before even starting to look at any franchise concepts, perhaps a more efficient and effective method is to ask yourself some personal questions first. This way, you match the franchise concept with your needs and wants, instead of the other way around.
The franchise relationship between the franchisor and franchisees form the backbone of any franchise system. As in any relationship, this relationship too will go through different stages and phases.
You join a franchise with every intention of becoming successful, but success does not happen just because you invested in a franchise. This is the beginning of the journey and various factors contribute to success.
Terminating a franchisee is one of the last things a franchisor should be looking at when awarding franchise rights. However, it may be the only choice for the franchisor to protect themselves when franchisees go rogue and cause damage to the system.
Being differentiated doesn’t just attract prospective franchisees to learn more about the business concept, it also portrays the ability to let potential investors know that the brand has their own niche of customers.
If franchisors are not able to provide an indication of the level of profitability their franchise concept could offer, prospective franchisees won’t have a reason to carry on with negotiations and start looking elsewhere.