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What does franchisor support look like in practice?
Buying a franchise means buying into a system, not just a brand. While initial training is often well understood, many prospective franchisees are less clear about what support they should expect once the business is up and running.
From launch help and staff training to performance monitoring and long-term business development, franchisors can provide a wide range of ongoing support – but the level, quality and delivery of that support varies widely between networks.
Drawing on insights from experienced franchise consultants and lawyers, we explore what franchisor support really looks like in practice…
What is a franchisor’s role once I’ve joined a franchise?
At its simplest, a franchisor’s job is to help franchisees run successful businesses. That support applies regardless of scale.
Whether a franchise is a one-man band or a multi-unit food service outlet, franchisees still need guidance on winning customers, delivering services properly, managing finances and reviewing performance.
Brian Duckett, former chairman of The Franchising Centre, says: “The various types of support, and the quality and amount thereof, will vary greatly from system to system.” This makes it essential for prospective franchisees to understand what’s actually on offer.
What support should I expect when launching my franchise?
Most franchisors provide intensive help at the very start of the journey. According to Vicky Wilkes, head of legal at Aston Villa Football Club, “The main support usually provided will be in the form of training and access to the operations manual.”
This initial training is designed to ensure franchisees have “the right skills, knowledge and tools to operate and manage the business”. It may be delivered face-to-face, on-site or online, depending on the franchise model.
Launch support often goes further. Wilkes explains that franchisors may offer “advice on finding appropriate premises, hiring staff and giving general guidance in setting up the franchise”, as well as a marketing budget “for the launch of your franchise to give it publicity and market presence”.
“An experienced team will typically be with you on the opening day or even for some time after that,” Duckett adds, with regular contact continuing as the business settles.
What forms does ongoing support usually take?
Once a franchise is up and running, support shifts from set-up to performance and consistency. John Pratt, senior partner at specialist law firm Hamilton Pratt, explains that franchisors provide “continuing training to franchisees to make sure that they maintain appropriate standards”.
This is supported by regular updates to the franchise manual and ongoing access to help. Pratt says franchisees should expect “continuing support, either through telephone, on-site or internet assistance”, enabling them to draw on the franchisor’s experience when problems arise.
Marketing is also a key area. Franchisees “would also expect franchisors to provide marketing materials and back-up, normally in return for the payment of a marketing levy”.
How do franchisors monitor and improve performance?
Many franchisors actively track how franchisees are performing. Shelley Nadler, legal director at Bird & Bird, explains that support often includes “monitoring the progress of the business by reviewing financial and other data provided by the franchisee and by regular contact with the franchisor”.
This monitoring isn’t just about numbers. “The franchisor’s support staff may carry out a formal or informal inspection of the franchisee’s business to check if standards are being maintained,” Nadler says, and to explain what needs to be fixed if they are not.
Some franchisors go further by offering operational support. Nadler notes that “some franchisors provide ongoing support with back office functions such as invoicing and credit control” or provide “customer leads or a central call centre”.
Do franchisees have to pay extra for ongoing staff training?
Costs are an area that often confuses. Vicky Wilkes explains that franchisees are usually responsible for training staff before opening “at your own cost”.
After launch, franchisors will often insist on further training. “This additional training is usually provided at the cost of the franchisor, unless specifically requested by the franchisee,” Wilkes says. However, franchisees are still likely to cover travel, accommodation, staff time and venue costs.
Where staff are concerned, responsibility usually sits with the franchisee. Unless the franchisor insists on delivering staff training directly, “it will be your responsibility to pass on anything that you learn through the additional training to your own staff”.
How does support differ between new and established franchises?
The maturity of the franchise system makes a major difference. Duckett explains that in the early days, support can be limited in a new franchise because the founder is often “too busy trying to recruit more franchisees”.
By contrast, an established franchisor may have “a management team or can afford to outsource to franchise consultants with expertise in all areas of the business”, resulting in much broader support.
How can I judge whether a franchisor’s support is good enough?
Ultimately, promises and manuals only tell part of the story. Brian Duckett advises that “the best way to check whether [the franchisor’s] level of support is sufficient is to ask existing franchisees”.
Duckett says franchisees should expect “the level of support that was promised during the recruitment process”, particularly in more established networks with sizeable management teams.
There may be “no ‘right way’” to deliver support, but as Duckett concludes, “there will be a right way for each network” – and it should be clear, consistent and focused on helping franchisees succeed.
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