WHAT DOES A FRANCHISE PROVIDE
The advantages of a franchise
over an independent business are aplenty. A
Franchisor must furnish valuable services to its
Franchisee will have his own corporate name
as Incorporation or individual business owner
but the franchised business operates under the
Trademark of the Franchisor.
Franchisors should knows where franchised
businesses should be opened, which locations are
good for a Franchisee and which not, which may
be determined generally by location, most
important with food franchises or other aspects,
like purchase power of a certain area, etc.
Sensible and complete specifications,
standards and operating procedures, the
so-called system standards, effectively
communicated to Franchisees and readily
The “How To” documentation of the business
operation and the implementation of the system.
Transfer of business experience is
transferred from Franchisor to Franchisee
Wisdom of Franchisor
The Franchisor went through the “labor pain”
of opening the business by himself some time
ago. For a new Franchisee that trial and error
period is eliminated.
Effective initial training is critical to
achieve positive Franchisee attitudes regarding
system standards, the operation, the Franchisor
and the value of the franchise and depending on
the business can take from 5 days up to 6 month.
Site Selection Assistance
Franchisors, usually do not provide
locations and prospective Franchisees have to
find them by themselves. However, Franchisors
will know where a franchised business shall be
located within a certain area and will inspect
the site prior to the start of construction or
operation, if the location is suitable for the
Store lay out
Franchisors will provide lay out assistance
and supervise the construction of a new
franchised store. The entire construction cost
is at the expense of the Franchisee, and has to
be paid as due to either the Contractor or
Franchisor, depending on the arrangement.
Most Franchisor will award new franchises
with an exclusive Territory, which depends on
the kind of business can be a certain radius in
meters or a floor in a mall, a whole City or a
whole province or City or several of them as
Area franchise or even a whole Country as Master
Franchisor will provide a listing of
authorized suppliers for equipment’s, goods,
materials and services.
Franchisor assistance in hiring personnel
for the Franchisee by giving the guidelines for
needed staffing and training them, and set-up of
the franchised outlet. Franchisor’s management
and staff assist new Franchisee upon opening of
the franchised outlet to operate it smoothly
from day one onwards. Franchisors representative
will remain in the Franchised Facility for a
period of time as determined by Franchisor to
assist Franchisee in the initial operation
Franchisee may have to contribute to a
National Advertisement Fund, a Co-op
Advertisement and spend some amount for the
initial Opening Advertisement and the ongoing
Local Store Marketing activities.
Effective Field Service
Operational support is needed by Franchisees
for occasional questions and problems.
Knowledgeable and well-trained personnel with
positive attitudes and a willingness to help
Franchisees are provided by Franchisors.
Franchisors shall also be available to
Franchisee via phone, email, fax or text for
urgent problems arising from the operation of
the franchised business. Important is also that
Franchisor and his representative regularly
visit the franchised outlets.
Research and Development
Businesses face tough competition and new
products are constantly to be tested and
introduced in the market. The job is with the
Franchisor in development of new products and
service, improvements of equipment’s, formats,
operating efficiency and trying to beat