Turn Your Franchise Partnership into a Resounding Success
All companies want to grow and reach out to customers everywhere, however, alone it might not always be possible for the company to do this and so, companies start leasing out franchises when they want to expand. A franchise acts as a representative of the company while running its own unit with the assistance of the parent company. The parent company permits the franchise to use its brand name in exchange for a royalty sum. But not all franchise partnerships are successful. Franchises need to perform well and earn enough profits in order to run it. Let’s take a look at all that a franchise needs to do in order to maintain a successful partnership and to meet the parent company’s expectations.
The bottom line of any business is the profits made by it and even for a franchise, it is the most important part. The parent company or the franchisor shares the profit with the franchise on an ongoing basis. Hence, if the franchise is not incurring sufficient profits, then not only does it suffer, it also generates fewer profits for the parent company. In order to maintain a healthy partnership with the parent company, the franchise should strive to reduce costs, increase sales and efficiency, which will in return increase their profits.
2. Alignment with Brand Image
The franchise company would have had to spend a long time creating a brand and its values and its image. Any company is highly sensitive about their brand values and brand image and rightly so. The brand of the company is what drives customers to it and drives its sales. Therefore, it is of paramount importance that any franchise, which is using the company’s brand name, respects the brand and ensures that all activities follow the brand image. A franchise cannot hamper the brand image by reducing quality or service or change the brand image in its creatives. These aspects are very important to the parent company and any damage to the brand would be definite damage to the franchise and the parent company.
3. Customer Service
A brand is part of the image of the company and if a franchise does not have impeccable customer service, it will reflect on the brand and the parent company. Most customers who visit franchises would have visited other franchises of the brand too. They relate to the service provided at the store and if a particular franchise does not match up to the level of the customer service generally expected from the brand, then that will let down its customers and the brand. No parent company will accept shoddy customer service from a franchise because eventually, it is their reputation on the line.
4. Quality and Standard of Products
When a customer visits a franchise consultancy, he or she expects the same products that are available at the company outlet. If the franchise does not produce the same quality, the customer who is already aware of the company’s quality, will not accept it. It is imperative for a franchise to maintain the quality of the brand’s products and follow the standards while producing and handling them. The brand’s image and reputation depend on the products and any hamper to the quality of the products is a direct hamper to the brand. To not maintain the quality of products can be a grave mistake and will definitely enrage the parent company.
5. Cleanliness and Sanitation
The franchise unit acts as a representative for the parent company in its area. When customers walk in the unit, they need to feel safe and they must not find it unsanitized or not cleaned. The franchises have a responsibility to carry forward the brand’s and the parent company’s legacy forward in their area and keeping the franchise unit clean, healthy and sanitized is one of their prime responsibilities. It is essential for the health of the staff which works there and also for the customers who visit. Any accidents or health scares or issues that may occur on the premise could cause legal troubles for the franchise and the parent company. Hence, it is very important to maintain the cleanliness of the franchise unit.
All partnerships are built on the foundation of trust and honesty. Similarly, even for a franchise partnership to succeed, honesty or transparency in dealings is one of the most important factors. The parent company and the franchise share their profits and work in collaboration, in such a case, the franchise should be completely transparent with the parent company if it wishes to hold its trust. We see partnerships crumbling all around us today because of a lack of transparency or increased mistrust, to avoid this always be honest and open regarding your dealings and profits and revenue and cost. Treat the parent company as a partner, as a well-wishing assistant and supervisor and work with it with a positive outlook.
7. Comprehension of the Business Model
A franchise works on the success of replicating a successful and established business model. The business model is established by the parent company and has been proven to be successful, which is the reason why it has been replicated. The franchise should be implementing the same model at its unit and any changes it would make to it would have to be discussed with the parent company. The business model guarantees success because it has been iterated multiple times by the parent company and has proven its worth. A franchise cannot skip or alter the parent company’s business model because that brings in the risk of failure or mismanagement.
8. Staff Management
Many parent companies might help franchises with the hiring and training of new employees. However, once employed, the management of the staff is totally dependant on the franchise itself. The parent company is always available for counsel if needed, but the franchise has to take care of its own personnel. Employees need to be satisfied and need to feel fulfilled in order for them to perform well. The franchise will need to hire a human resource officer to look after the employees and the employees’ well being. If the staff is not happy working at your unit it would increase staff turnover, will disrupt services, will increase hiring and training costs and will hamper the general operations of the unit.
A franchise partnership can be a great benefit for the franchise if they utilize the resources provided by the parent company and make use of the parent company’s assistance and expertise. The parent company can be a long-term partner if the franchise can meet and even exceed its expectations. Keeping the parent company happy is in the best interest of the franchise and any franchise should strive to achieve that.