What are the ‘rules of engagement’ in franchising and what are the responsibilities of the franchisee and franchisor? Nigel Toplis explains
To start off with, it’s not the franchisor’s responsibility to run your business. However, it’s certainly their responsibility and duty to provide you with a proven business system. This will include tried and tested processes, systems and methodologies.
It’s also the responsibility of the franchisor to support the franchisee in key business disciplines. This includes training, sales, marketing, procurement, plus much, much more. Finally, you would also expect the franchisor to be a guide and a mentor.
However, it’s certainly worth noting that the franchisee remains the business owner. Therefore, when you buy into a franchise, it’s not an excuse to remove yourself from the responsibility of running the business. If the business fails you can’t simply blame the franchisor. Nor can you put the onus to build a successful enterprise on to someone else. Ultimately, this is your business, and you must assume some responsibility.
So, with the knowledge that it’s not the franchisor’s responsibility to run your business, how does the franchisee approach life as a new business partner?
Firstly, you need to build on what the franchisor has given you.
I’m a great believer in ‘walking the patch’ and ‘smelling’ out prospective customers. The closer I get to a customer, the more I start to understand them and, therefore, the better chance I have of doing business with them.
So as a start point you need to ‘get down’ and ‘get dirty’.
If you want to become well known in your own community it’s your responsibility to carry out as much local networking as possible.
There is a plethora of opportunities waiting out there for you, such as the BNI (Business Network International), BRE (Building Research Establishment) and 4-Networking, as well as the long-established Chamber of Commerce, Women in Business and other local enterprise clubs.
Networking will help to raise awareness of both you and your business. If you can secure at least three referrals from each event, then the power of networking will certainly assist you in building a strong customer base.
We Brits are stoic when it comes to asking for assistance though. We tend to just keep plugging away hoping to eventually find ‘the solution’.
Something we should do more often is to ask for referrals. Not seemingly an easy thing for us to do, but it will boost your profile in the world of business.
As with networking, we need to ask friends and family, AND existing customers and suppliers, to provide us with the contact details of one or two other people. Not just any old details, but for those who our friends believe would benefit from knowing about our existence – and what our business has to offer them.
Business is about getting personal with your customers, and then building relationships. This is something the franchisor just can’t do – especially at a local level. But you certainly can, and you must.
If you want to make an impact with customers, then you have to get noticed. This may mean marketing to them directly and building an intimacy by sending something which may appeal to them personally.
Personalised promotional products are potentially a key weapon in retaining or attracting customers. We might send, or hand deliver, a gift that is personal to our customer. This provides us with an opportunity to make that customer feel special. The product could be a mug with the customer’s name on it, or even a long-lasting durable pen, or a pair of cufflinks inscribed with a personal emblem.
Whatever the chosen product, the most important aspect is the intimacy you gain with the customer. You are then perfectly placed to build a personal relationship with your customer or even a prospective one.
All of the tips mentioned in this article are tasks which need to be carried out by the franchisee themselves – and not the franchisor.
Franchisors have their own responsibilities to carry out to ensure the network is continuously improving and developing.
BUT franchisee support is a critical responsibility of the franchisor and teamwork creates a successful business – as such all parties need to know and understand their own personal responsibilities for achieving mutual success.
