How franchises think global and act local

In effective franchise networks, franchisees can focus on the micro-market because franchisors should take care of the macro-market

How franchises think global and act local

In the franchising relationship, it’s the responsibility of the franchisor to look at the bigger picture. They monitor, influence and translate what’s happening in the wider industry for the protection and benefit of their franchisees. And with good reason. A franchisor must continually work to improve the model, modify the system and keep up to date with, if not ahead of, legislation and trends as a matter of future-proofing.

Whether you’re a franchisor or a franchisee, you should notice that the best franchisors will concern themselves with things that could affect the entire network. For example, they will focus on changes and updates to regulations, economic forecasts and potential political or social events that are likely to have an impact on either provision or supply of goods and services. In addition, they will identify opportunities to update and implement new technologies in line with needs and trends to advance the business as a whole.

Franchisors can ensure knowledge of their marketplace remains up to date and relevant by being front and centre. By way of example, Tim Morris, director of global franchise support at Tutor Doctor, sits on the board of The Tutors Association. This helps us shape policies for best practice and tailor the tools franchisees need to succeed based on emerging developments and key messages.

In most, if not all, franchise agreements, you’ll find some reference to this overarching responsibility of the franchisor. It’s a great question for prospective franchisees to ask: ‘what do you, as my franchisor, do 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?’

With an effective franchisor taking care of wider considerations, franchisees are free to focus on their local market. But it’s important to remember that this is where the responsibility flips. It’s absolutely your responsibility as a franchisee to work on understanding and leveraging the local market, from geographic or demographic nuances in marketing messages to specific price variations linked to the micro social-economic climate.

Safe in the knowledge that the franchisor is on top of industry regulations and economic trends, franchisees can concentrate on making the most impact for the brand on a local level. This means franchisors must continually research new and existing customers, analyse the local competition and undertake profile-raising activities and PR for themselves and their business.

Combine a franchisor that is active on a macro level with a franchisee who is engaged in their own microclimate and the beauty of franchising really becomes apparent. A franchisor’s ability to hold position, influence and be involved in their industry’s future direction is increased, ultimately benefitting and strengthening the brand and model for every franchisee. A franchisee who has been able to focus on their local community will build a better business with greater brand presence and awareness, the benefits of which will resonate through the entire franchise. By working together, a franchise network is more than the sum of its parts.

Frank Milner
Frank Milner