Friday, September 20, 2024
The foundations of a good franchisor
The foundations of a good franchisor, as discussed at the Multi-Unit Forum held at the Franchise Expo Paris, can be summarized in several key points for franchise candidates, especially for multi-unit and multi-franchisees.
A solid track record
A good franchisor should have tested and proven their concept, ideally in a company-owned store, before expanding it into a franchise. They should also demonstrate tangible experience in managing franchisees, and their development model should not be driven solely by financial interests. A network without a track record or one that does not share development risks with its franchisees poses a danger to them.
A shared vision and values
Collaboration between the franchisor and franchisees should be based on a shared vision for long-term development. The values upheld by the brand should align with those of the franchisee. Transparency and trust are crucial in this relationship to ensure a healthy and sustainable partnership.
Ongoing training
Support should not stop after the store launch. The franchisor must provide long-term support, including regular training, a network of competent field representatives, and sharing best practices among network members. This support is essential for franchisees to operate in a secure environment and benefit from the network's experience.
Proper consideration of franchisees
The franchisor should value their franchisees appropriately by giving them a central role in strategic decisions for the network. Franchisees should be treated fairly compared to company-owned stores, especially regarding inventory management or pricing policies.
In conclusion, a good franchisor is distinguished by their long-term commitment, transparency, ongoing support, and ability to share risks and success with their franchisees. These aspects are crucial for success in franchising, whether in multi-unit or multi-franchise.