As with most of life’s relationships, each party has its side of the bargain to uphold.
As with most of life’s relationships, each party has its side of the bargain to uphold. The world of franchising operates on those very same principles – with franchisors overlooking the bigger picture, whilst franchisees take care of their micro-market. This ability to see things on every level makes franchising an extremely attractive opportunity to any prospective franchisee.
In most, if not all, franchise agreements, there will be a reference to the overarching responsibility of the franchisor. However, during the due diligence process, it’s a great reason to ask: “What do you do, as my franchisor, to keep up to date with the industry and ensure the model is always at the very least fit for purpose, if not a leader in the market?”
Having the franchisor survey the entire industry, including any updates and changes to regulations, and the specific sector is beneficial as they can support accordingly if anything affects usual operations. They will also be privy to economic forecasts and potential political or social events that are likely to have an impact on either provision or supply of goods and services. Taking all of the above into consideration, it’s in the franchisor’s best interests, for the benefit of the network, to identify opportunities to update and implement new technologies in line with needs and trends to advance the business.
By being aware, anticipating, influencing and planning at a macro level, franchisors can develop strategies that not only minimise the impact for franchisees locally but can empower them to leap ahead of the competition. The pandemic has initiated the rise of competitors across all industries – we’ve certainly seen it within the private tuition sector – but franchisees don’t have to face these challenges alone.
Franchisors can ensure up-to-date and relevant knowledge of the marketplace by being front and centre. For instance, Tutor Doctor is heavily involved with The Tutor’s Association, which is the regulatory body for the industry, by sitting in on meetings, attending conferences and being part of the team that’s responsible for shaping the industry. Whilst this helps us form policies for best practice and tailor the tools for franchisees, it also gives us an added credibility to our service that appeals to parents across the country.
With the wider picture taken care of by the franchisors, franchisees are free to focus on their local market and the things they can genuinely influence within their territory. But it’s important to remember that this is where the responsibility changes hands. It’s within their power to understand and leverage the local market to create a successful business. Right from nuances within marketing material that relate to a particular client to price variations that appeal to the desired demographic, there are many things to consider as part of the everyday activities.
It’s an opportunity to concentrate on making the loudest noise possible for the brand on a local level. Although the list is much longer than I could ever write in this column, it includes researching new and existing customers, analysing the local competition and PR’ing themselves and their business to get seen and highlight their service above anyone else.
So, you’ll see that franchising is just like any other relationship we have in our lives. Each party has their own responsibilities, and they complement one another to create a truly enviable business opportunity. By combining a franchisee, who is engaged in their micro-climate, and a franchisor, who is active on a much wider scale, the beauty of franchising really becomes apparent.