While there are no “right” reasons as it is highly subjective matter, there are actually many “wrong” reasons for making such a commitment. And these erroneous thinking could be the first step towards the opposite of success.
It is that time again where people set goals to try and do better and achieve more for the upcoming new year. As a franchisor, this means a little bit more because most decisions you make will impact franchisees.
The franchise business model is not for everyone. Undoubtedly the biggest drawback for many is the lack of control, while the main advantage is probably the reassurance of buying into a business that is proven to work.
The franchise pitch should aim to strengthen interest and clear any doubts. But sometimes, the opposite happens and the prospective franchisee leaves the meeting feeling even more confused or loses interest.
Most (if not all) franchisors grant rights for territorial exclusivity to their franchisees for the main purpose of assuring franchisees that they have their own business area to operate and market in.
The very first example of franchising dates all the way back to the Middle Ages, when local governments granted high church officials (and other important folk) a license to maintain order and collect taxes on their behalf.
Control of a franchise is generally quite strict, and will include everything from the staff uniforms to the marketing literature that appears in the store. In most cases, the pricing will also be standardised.
How are you as a franchisor? Are you fulfilling your responsibilities and doing all you can to help your franchisee? Or are you doing something that makes you a “bad” franchisor, whether knowingly or unknowingly?