“No man is an island” as the famous cliché goes. You might have the same thought especially if your business is on the brink of falling into the danger zone. Right now, you might have something in your head that pushes you to think of a source that could help save your business.
“You are not alone”, I often give this statement of truth whenever business owners who bought from franchises would inquire for my professional advice. This is the main justification. Whether a franchisor is a giant like 7 Eleven or a new baby and starter such as Donut King, they equally play a role as urgent proponents whenever a location of their own starts to wane from what is desirable. Apart from analysis, this is what venturing business owners hold onto rather than building and starting on their own business.
From the given facts above, you might be considering to become a franchisee. But before you head start on the said livelihood, it is advisable to cross examine some current franchisees about how their mother company provides and supports their needs and requests despite this challenging economic status. Having to ask an established franchisor about its obligation to the franchisees can also be a part of your to-do list. If you are already a starting franchisee and in this phase you are experiencing downfalls, do not hesitate at all to propose for support from your franchisor. Remember, you are not alone.
Provided below are some of the citations on how franchisors benefit their franchisees:
Initial Training. A franchisor in the beginning phase has the initiative of providing basic education and advanced sales training as part of their support relations and business dealings. If for instance a franchisee has been experiencing distress on the sales, it is but a way of the franchisor’s support to dispatch its own staff members for the troubled. The staff members assist in gathering more customers and help the franchisee to cope through practical training.
Because of authority, the franchisor can also implement mentoring programs to boost the practical knowledge and skills of the franchisee. Furthermore, a franchisor can also hire business experts from outside sources to impart expertise. As a parent company, a franchisor would want to bring the best out of a franchisee. Setting this kind of practice, both of the parties are mutually benefitting from each other.
Marketing Strategies. Marketing gives a stand out factor for consumer product franchises. It is through the power of marketing that a business can captivate many, many customers especially if the strategy is about adding more value and cutting the expenses for them. Creating changes and updates in their advocacies for advertising, even if it is a major risk, set a franchise company to stand out among others despite of the economic hardships.
Some outstanding franchise companies are capable of giving support supplies in order to uplift the franchisees’ sales. Others also develop marketing campaigns for the franchisees’ advantage in order to leave a mark of great publicity to the general public.
Cost Reduction. In order for a business to continue thriving in economic recessions, one strategy a business can employ is to reduce its overall costs as much as possible. Established franchise companies can help their franchisees by negotiating more reasonable prices of the materials from the suppliers, competitively biding for the materials to be used to dramatically reduce their prices and ensuring that spoilage and wastes are kept at a minimum when handling them. The sum will result to a more effective operation.
Direct Monetary Assistance. In some circumstances, the mentioned supports still are not enough to keep a franchisee out from failing. Because of these circumstances, a franchisor can give a direct monetary assistance until the market conditions will recover. An example of which is the reduction of franchise-fee payments and waiving royalties. A franchisor can also extend the terms when the franchisee will buy needed materials and supplies from its mother company. And sometimes, can help to negotiate better terms for the franchisee’s current business loans or leases.
These supports and help are not mandated by the contract between the franchisor and franchisee. It is actually beyond on what is expected from a franchisor under normal market circumstances. It can be because for the best interest of the entire company. And as the years will come, all the efforts will give more profit for the company.