Buying into a franchise means that you are investing in a business that has already established itself and has systems in place to help you be successful. This is why choosing to open a franchise can be a smart business decision. But there are other things you should expect from your franchisor besides just a system that works.
When Should Expectations Begin?
We can’t talk about what to expect without first discussing when these expectations should begin. Your franchisor-franchisee relationship starts immediately after you pay your initial franchise fee. This is when you are officially in and once you are, there are certain expectations you should have from your franchisor. When you start sending in your monthly royalty check to the franchisor, there are three expectations your franchisor should meet.
#1: Your Franchisor Should Offer You Support
And good support at that. What does that look like? Here’s an example:
Franchisee: “Hello, this is Susan Meyer in Louisville. My Point-of-Sale terminal has been continuously shutting off and on and I’m offering my customers a major local promotion today. Are you able to help me fix it?”
Franchise Headquarters Representative: “Oh, that is not good. I will connect you with someone from our IT department now. They will be able to come up with a solution.”
Franchisee: “Thank you. I appreciate your assistance.”
Franchise IT staff: “Hi Susan, this is Carlos from the IT department. I understand that your POS terminal is malfunctioning. Let me see if I can get that fixed now.”
Franchisee: “Thanks. I really need this to work today for our promotional sales.”
This problem was resolved within minutes — and in a perfect world, this is the support you should expect from your franchisor. Unfortunately, we don’t live in a perfect world. There will be some situations where you have to be patient while issues are resolved. Some problems can be fixed fast, others may require a little more time. Support from your franchisor should be as quick and good as possible but within reason. Some things are out of everyone’s hands. Communication in these situations will be key.
#2: Your Franchisor Should Be Innovative and Constantly Thinking of Ways to Improve What They Have to Offer While Coming Up With New Ones
Why is this an important expectation? Because franchisors should be doing their best to keep things fresh and fun for their franchisees. It is also a good way to provide them with additional profit opportunities. Think about the new products major fast-food franchisors have added to the menus over the years. Not all of these innovations have been as rewarding as expected; however, some concepts like the double drive-thru, extra drive-thru windows, app ordering, and special promos have. Simple solutions tend to have big payoffs, especially those that improve the customer’s experience. As you do your research to narrow down the best one for you, ask franchise executives if they have any new things they’ll soon reveal. What’s next? How are they improving? This is a great way for you to see how innovative they are– and to see what your new franchise business might be offering soon.
#3: Your Franchisor Should Provide You With Top of the Line Technology
I’d ask why but we all understand the importance of technology in today’s world. Great technology is essential to keeping up with your competitors. If your competition is offering online ordering to make things faster and more convenient for customers while handling a lot of ordering during peak business hours, your franchise you should be doing the same. Today’s consumers aren’t like those in the past. They are not as patient and any delays could cause them to look elsewhere for a similar product. To them it’s as simple as switching a tab but the loss of business can be costly. Not only is online ordering technology important but marketing technology is, too. Your business needs strong, innovative marketing strategies to continue to succeed. Many businesses, small and large, offer a way to capture customer phone numbers and emails that you can save and use later to send out promotions and follow-up with customer satisfaction surveys. Is your franchisor doing this? They should!
There are many things you should find out about a franchisor before investing. They should meet your expectations, offer support, constantly improve their technology and come up with innovative ideas to make your experience and the consumers better than ever before. Aaron Bakken can help you find the franchise that meets all your needs– and more.
Contact Aaron (608-576-4592) To Learn More!
About Aaron Bakken
Franchise Consultant for The Franchise Consulting Company
Aaron has 20+ years of franchise and independent business ownership experience. He also spent 5 years as the VP of Franchise Development for an international franchise group, growing the franchise to the advent of a private equity buyout. Whether you are looking to buy a franchise opportunity or franchise your business, Aaron knows how to guide you.
No Cost To You
Aaron is paid by franchisors and development companies for bringing them viable franchise investors. So frankly, his clients have nothing to lose by engaging with him but a bit of their time. Aaron helps his clients navigate the complex world of franchise ownership and development and provides long term guidance to help his clients achieve their entrepreneurship goals.