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21st December 2009

Don’t Be Irritated By The Inflexibility Of The Franchisors, It Is Necessary To Ensure The Smooth Running And Success Franchise Operation

posted in Bricks and Mortar Business |

When you first step into the realms of a Franchise Opportunity one of the first things to stand out will probably be the bulk of the “rule book”, or the file that sets out the basis under which you may work within your contract. There will also be a extensive amount of detail around the consequences of not abiding by these rules, some of which will be harsh.

It is also distressing for a new franchisee to recognise that the good ideas that he comes up with on how to improve the operating of the business are nine times out of ten not taken up the franchisor, and more than that are discounted going forward. This is all very much part of the Low Cost Franchise tradition. A culture that causes a considerable amount of stress and irritation for individuals having just recently purchased a Franchise For Sale and less so for those who are experienced at the franchise model.

Those with more experience of the ways in which a franchise model works can understand the necessity for conformity across the board. This typically means that the same rules apply to all franchises across the country but equally it could apply overseas too.

The model must be easy to copy all over the territory in which it operates and therefore should be constructed to allow regional differences in the process. The model must also take into account that the franchisees running each franchise will have different abilities and so it must be clear and enlightening enough for all to handle. This can sometimes mean that an individual with heightened skills in a particular area is restricted in his actions as the rest of the franchisees would just not be able to operate at that level.

A lot of the conformity boils down to the ease in which the Low Cost Franchise operator can check and control the whole team. If every franchisee for example was submitting sales figures in a different configuration it would be very time consuming to appraise the overall picture and so all franchisees have to use the same reporting documentation. If one franchisee decided that he was going to put a deal together for a particular package of products in a particular month the sales of the franchisee in the ajoining patch may be affected. This could spiral to a complaint to the franchisor. A few of these sorts of situations needing attention and the franchisor is using all his time resolving disagreements rather than continuing to grow his business.

So the rule book, although large, is there for a very good reason, the continued growth of the entire organisation. If you are considering a Franchise Opportunity do not necessarily be put off by a large and exhaustive list of do’s and don’ts. Often it is a sign that the franchisor has great plans for the organisation and has the determination and drive to get it there. This of course is precisely what a potential franchisee wants to hear as the brand and business growth will have a massive affect on the profits for each franchisee.

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