The Franchise

As a previous owner of a Franchise I know the importance of maintaining employee commitment, loyalty and enthusiasm in maximising customer satisfaction, generating positive customer perception and protecting your investment.

Repeat business is the life-blood of any business worth its salt. Coupled with a structured approach to increasing market share, looking at the

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So often franchise attorneys complain that franchise buyers get the shaft from fast-talking franchisors and complex franchise agreements, which make it nearly impossible for the franchisee to get a fair shake. I have heard this complaint time and time again as a Board of Director Member of the American Association of Franchisees and Dealers, as franchise attorneys looked for an easier way to sue franchisors on behalf of their franchisee clientele.

If you own a franchise fit you know that there are stipulations when you sell your franchise to someone else. The new franchisee will have to qualify with the main franchise company prior to closing of the sale. The Franchisor will be concerned that the new franchisee coming into the system is not a competitor and can maintain your business or increase sales. The Franchisor will need to screen the new franchisee and make sure they are competent enough to run the business and the new franchisee will also have to pass training.

To maintain the quality and control of a franchise system each franchise Outlet must receive the same training. A franchisor’s job is to make sure that the training is the same, keeps the franchisees efficient and maintains the consistency of the overall franchise system.

It is for this reason that I added a clause in our companies franchise agreements, which addressed general training and ongoing training requirements. Below is a copy of one of the renditions about clause;

One of the strategies that franchises often employ to maintain the integrity of the franchise system and insure control and consistency throughout the franchise company is to use a standardized confidential operations manual. Yet, we all know that the only thing that is constant use change. This is why the confidential operations manual in any franchisor company must be constantly updated. But, how do you know if all the franchisees have been diligent in updating their manual, so that everyone is doing everything the same way?

Security is so important that it has to be addressed from the very first day you start planning your new franchise business. Over the years the franchise industry has developed security safeguards and operations that are highly effective and most franchisors now have as a matter of course well developed, tried and tested security procedures. There is now a very active Security Industry, which has grown up around this need for protection, and ranges from local, to large national and multi-national companies.

One of the most important management tools a franchised company needs is a great computer system. The system must integrate with all the franchised outlets and also be able to interface with the Corporate HQ computer system. There are many companies which have already set up specialty IT systems for franchisors, but much of an off the shelf system will need modification. Be sure when talking with software vendors that you make sure that you get what you want and do not simply fall for the sales approach of them telling you what you need? After all, how on earth would they know that? Designing and/or securing a computer system will require some pre planning thought on your part.