Franchisor support varies greatly. And when looking into franchise systems, it’s helpful to have an idea of the “gold standard.” Look for a system that goes to bat for its franchisees, shares its expertise, and offers help in many areas. Here are four examples of the type of support the best franchisors provide.
Franchisor Support: Sales Training
Most franchisors provide initial and advanced sales training to franchisees. But some step up their game: they send their own training staff into local markets and help franchisees improve at generating business. They develop mentoring programs so franchisees can share knowledge and best practices. They may even bring in outside experts to train their franchisees.
Franchisor Support: Marketing and Public Relations (PR)
Effective marketing is key for most franchises. The best franchisors continually evaluate, update, and improve their advertising materials. They develop PR campaigns that franchisees can use locally to gain favorable publicity. They may even help their franchisees conduct local “guerilla marketing” campaigns.
Franchisor Support: Reducing Supply Costs
Strong franchise systems help franchisees minimize overhead costs. They seek competitive bids from suppliers and negotiate advantageous pricing for goods and products needed in the business. Some may even select suppliers that monitor and reduce waste, breakage, and spoilage in the handling of goods and products.
Franchisor Support: Financial Assistance
Sometimes typical support isn’t enough to help a franchisee keep its head above water. Some franchisors will offer franchisees direct financial assistance to get through a temporary crisis. Some will defer, reduce, or waive royalties or other franchise fees owed by the franchisee. They may provide the franchisee with special extended terms on invoices for products or supplies. And they may help the franchisee negotiate extended or more favorable terms on business loans and leases.
Though most companies have no contractual obligation to provide any of these extraordinary services, doing so helps franchisees survive and thrive. This, in turn, benefits the entire system.