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What type of support does a franchisor offer its franchisees?
This depends on the type of franchise operated and the maturity of the franchisor.There will be the support provided initially to help the franchisee establish his franchise and also ongoing support. Initial support will commence with training the franchisee in the operation of the franchise so that the franchisee is provided with the basic skills needed to operate the business. If the franchise is premises based, many franchisors assist in acquiring suitable premises and advising on how they should be designed, fitted out and converted for use. Advice is usually also provided on equipment requirements, opening stock, staffing requirements, and the advertising and promotion relating to the launch of the business.The franchisor may also provide its own staff to supply on-the-spot assistance with the opening.The range of ongoing support may include monitoring the progress of the business by reviewing financial and other data provided by the franchisee, and by regular contact with the franchisor by phone, email and visits to the business by members of the franchisor’s support team. Ongoing training may be provided in areas where the franchisee needs help, or assistance may be provided to the franchisee in training his own staff. Further training will also be provided where the franchisor introduces innovations and system changes. In many cases, the franchisor will undertake responsibility for advertising, promotion and public relations for the network, which could involve anything from developing a central website or sponsoring a sporting activity to exploiting the development of national accounts whose local business could be transacted with franchisees.
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£50,000 – £100,000 profit
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14-18% net profit
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