10 Ways A Franchisor Helps Franchisees Drive Success

July 26, 2023

When you invest in a franchise, you buy into more than just a new business. As part of a franchise system, you benefit from the franchisor's business model and offerings, as well as their experience and expertise. The success of a system’s franchisees as a whole is imperative to the ongoing sustainability of the franchisor. Additionally, the support of the franchisor is key to the success of its franchisees, which is why franchisors provide an array of services to help their franchisees run profitable businesses. Here are 10 ways franchisors help drive franchisee success.


1.    Comprehensive training for new franchisees

One of the initial ways a franchisor prepares its franchisees for success is by providing comprehensive training to new franchisees. This training covers various aspects of operating the franchise, including business operations, product or service knowledge, customer service, marketing, and financial management. It equips franchisees with the necessary skills and knowledge to effectively run their business. Many franchisors also provide ongoing training opportunities that can further the knowledge and skills of their franchisees.


2.    Franchise operations manual – the “franchise playbook”

One of the advantages of owning a franchise business is benefitting from a proven business model and operational approach that the franchisor has developed. Franchisors typically provide their franchisees with an operations manual that serves as a detailed guide, outlining the franchisor's established systems, procedures, and best practices. This “playbook” enables franchisees to maintain consistency and adhere to the franchisor's standards for meeting customer needs and expectations.


3.    Site selection and development

For franchises that require a physical location, the franchisor will typically assist franchisees in selecting an appropriate location for their business. They may provide market research, demographic analysis, and site evaluation support to help franchisees make informed decisions. Additionally, franchisor soften offer guidance and support during the construction or setup phase to ensure the franchise unit meets the brand's specifications, or they may assist with lease negotiations when the franchisee is purchasing an existing structure.


4.    Supply chain management and preferred vendors

Franchisors often have established relationships with suppliers and negotiate favorable pricing and terms on behalf of franchisees. They assist franchisees in identifying reliable vendors, procuring inventory or supplies, and maintaining consistent quality standards. This support helps franchisees streamline their procurement process and reduce supply costs.


5.    Budgeting and financial planning guidance

Many franchise owners are new to operating a business. Some have management experience but aren’t very familiar with the financial side of running a profitable business. The franchisor can help new franchisees understand the costs related to their business and how to budget for necessary expenses. This is especially important when the franchise is just starting. As the business continues to grow, the franchisor can help review the financials and even benchmark against similar franchise locations in the network. This ongoing guidance can help the franchisee ensure they are optimizing costs and realizing maximum profitability.


6.    Business launch support

When starting your franchise business, the franchisor’s assistance is crucial. There are many steps to starting and launching a new business, and the franchisor will help you understand what needs to be done before opening your doors for business. The franchisor may also assist with marketing for your grand opening to help get the word out about your new business. While the responsibility for making sure everything is ready falls to the franchisee, the franchisor’s experience in this area can help ensure a smooth start.


7.    Marketing and advertising

Franchisors typically develop and execute marketing and advertising strategies at the brand level. They may create national or regional advertising campaigns, manage the brand's online presence, and provide marketing materials or templates for franchisees to use locally. Local marketing is typically the franchisee’s responsibility, but the franchisor can help ensure consistency across local campaigns and may also be able to negotiate better pricing with national providers that specialize in local marketing campaigns.


8.    Ongoing support and guidance

Franchisors offer ongoing support to franchisees throughout the duration of their franchise agreement. This support can include regular communication, field visits, business consulting, and access to a dedicated support team. Franchisees can seek guidance, address operational challenges, and receive feedback to improve their business performance. The franchisor may also provide channels where franchisees can network and share knowledge and expertise among themselves.


9.    Research and development

Franchisors often invest in research and development to innovate and enhance their products, services, or business models. They may share these developments with franchisees, providing them with new tools, technologies, or offerings that expand the franchisees’ business opportunities and help them streamline their operations. This is a huge benefit for franchisees as they may not have there sources to invest in R&D themselves. It also frees them up to focus on running their business while still benefitting from innovations developed by the franchisor.


10.  A sense of community

Being part of a franchise system helps business owners feel like they are part of something larger than themselves. Ideally, the franchisee shares similar values with the franchisor and other franchisees in the system, and as such the franchisee may feel they are making a difference in a way that is important to them. This shared sense of community can lead to a greater sense of fulfillment, and can also be a source of knowledge, camaraderie, and strength during challenging times. As the saying goes, when you own a franchise, you are in business FOR yourself but not BY yourself.

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