Supporting the Franchisee

In this segment of MegaDox.com's Successful Franchising series, we discuss the areas in which the franchisor provides support, assistance and training to franchisees.

Operational Support
The objective of operational support is to assist the franchisees in managing their franchise business efficiently and effectively so as to achieve maximum sales and profits. Especially at the outset of the relationship, franchisees require functional support from the franchisor in the areas of:

• financing,
• business planning,
• administration / accounting,
• human resource management,
• marketing,
• operation / customer service,
• technical expertise,
• measurement, feedback, benchmarking.  

To ensure that the parties can achieve their goals, the franchisor must be able to provide:

1. Experienced staff resources
2. Proper support tools
3. Guidelines and procedures.

Experienced Staff Resources
These include:

• Field representatives
• The company's management team
• Other franchisees' resources, including staff
• Franchise consultants
• Other outside consultants.

The Field Representative
The field representative acts in an advisory capacity, as a mentor to new franchisees. He/she gets to know the franchisees and encourages and supports their efforts. The field representative:

• Knows the franchise system,
• Knows how a franchise location should operate,
• Has received prior training on:
• the operational aspects of the business
• interpersonal communications
• team dynamics
• coaching in a leadership role.

The field representative's role encompasses the following responsibilities:

• Provide encouragement and mentoring.
• Analyze financial statements and offer suggestions on improving profitability.
• Verify that the Franchise System Standards are being followed.
• Help the franchisee develop locally targeted advertising and promotion programs.
• Help the franchisee evaluate the competition.
• Act as the company's face to the franchisee.
• Provide company PR.
• Be a problem solver.
• Help the franchisee with the development of its business plan by providing resources and setting time lines. Business plans are reviewed and updated on an ongoing basis, and the field representative's involvement can help avert major problems.
• Initiate weekly phone calls with franchisees.

The best time for the weekly phone call is on Fridays, to review the week and answer any questions or concerns so that the franchisee is ready for the following week. DON'T assume that if franchisees don't call with questions or concerns, they haven't got any.

The tone of the weekly call should be friendly and positive, and can encompass everything from family and staff to sales.

Support Tools
The company should also use Company branded support tools such as:

• franchise operating system intranet
• training programs
• appraisal programs
• monthly emails with Company news updates
• operations meetings (at least twice a year)
• conventions (for franchise networks with sufficient numbers of franchisees)

Field Representative's Tools
Your field representative requires proper tools to help him/her fulfill his/her role as well. These tools are:

1. Company's franchise system standards
2. Operation manuals
3. Pre-opening manual and checklist
4. Advertising and promotional information
5. Regular training
6. Controls outlined in the franchise agreement
7. Company policies

Guidelines and Procedures

1. Provide proper training.
2. Location visits:
• Decide how often to visit/meet.
• Scheduled visits vs. surprise visits.
3. Keep detailed notes.
4. Follow up a location visit with a written record of what was discussed and which action plans were agreed to, including time lines.
5. Put complaint procedures in place for franchisees to air concerns and for customers to complain to the Franchise Support Center.
6. Know how to handle defaults.
7. Don't compromise the Company's standards.

·      ALWAYS BE PROACTIVE AND NOT REACTIVE.

In our next instalment, we will focus on handling default and the "don'ts" of franchisee support.