Defining the roles and responsibilities is critical.
The franchisor and the franchisee are different ‘animals’ and whilst they should share the same goals – creating a successful business for the franchisee they will approach things from different angles.
To this end I thought it would be useful to understand the ‘rules of engagement’ in franchising – that is the different and clear responsibilities faced by both the franchisee and the franchisor.
This is YOUR business.
Whilst it is very much the duty and responsibility of the franchisor to create, provide, run and train the proven business system – including processes, systems, methodology and tools – it certainly is not the franchisor’s responsibility to run your business.
It is also the responsibility of the franchisor to support the franchisee in key business disciplines – including training, sales, marketing, procurement, plus much, much more, and you would also expect the franchisor to be a guide and a mentor.
However, YOU the franchisee remains the business owner. Therefore, when you buy into a franchise, it is not an excuse abrogate from the responsibility of running the business.
If the business fails you cannot simply blame the franchisor, nor can you put the onus to build a successful enterprise on to someone else.
Ultimately, this is your business, and you must assume responsibility.
Building success.
With this in mind, how does the franchisee approach life as a new business owner?
Rule number one – build on what the franchisor has given you.
Pound the pavement.
I am a great believer in ‘walking the patch’ and ‘smelling’ out prospective customers. The closer I get to a customer, the more I start to understand them and, therefore, the better chance I have of doing business with them.
So as a start point you need to ‘get down’ and ‘get dirty’.
Network
You need to inculcate yourself in the local business community so get out there and carry out as much local networking as possible by getting involved in the whole plethora of opportunities such as the BNI (Business Network International), BRE (Building Research Establishment) and 4-Networking, as well as the long-established Chamber of Commerce, Women in Business and other local enterprise clubs.
Networking will help to raise awareness of both you and your business. I would target at least three referrals from each event, to help build a strong customer base.
Ask a friend.
We Brits are stoic when it comes to asking for anything – but particularly for assistance.
We tend to just keep plugging away hoping to eventually find ‘the solution’, whereas what we should be doing is asking for referrals.
Not easy for some but it will boost your profile in the world of business so ask friends and family, plus existing customers and suppliers, to provide contact details of one or two other people. Not just any old details, but for those who our friends believe would benefit from knowing about our existence – and what our business has to offer them.
Relationships
Business is about getting personal with your customers and building relationships – intimacy lowers barriers and builds trust.
The franchisor is not equipped to get close to your customers – but you can, and you must!
To make an impact with customers, then you have to get noticed. This may mean marketing them directly and building intimacy by sending something which may appeal to them personally.
Intimacy tools
Personalised promotional products are potentially a key weapon in retaining or attracting customers. We might send, or hand deliver, a gift that is personal to our customer. This provides us with an opportunity to make that customer feel special. The product could be a mug with the customer’s name on it, or even a long-lasting durable pen, or a pair of cufflinks inscribed with a personal emblem.
Whatever the chosen product, the most important aspect is the intimacy you gain with the customer.
You are then perfectly placed to build a personal relationship.
All of the tips in this article need to be carried out by the franchisee – and not the franchisor.
Franchisors have their own responsibilities to carry out to ensure the network is continuously improving and developing.
Franchisee support is a critical responsibility of the franchisor and working together creates a successful business – as such each party needs to know and understand their own personal responsibilities for achieving mutual success.