There will be expectations that are unique to each industry, however, when buying into an existing franchise franchisees can expect to receive expert assistance from franchisors in a range of areas relevant to their business.
A conscientious franchisor will assess whether a potential franchisee has enough funding and drive to make owning and running their own business a viable option. Once funding has been assessed, the franchisor should offer the successful candidate assistance in securing extra funds from bank finance (for accredited franchise systems) or even vendor finance to make the dream a reality before providing reliable guidelines on the best place to locate the business site.
One of the core benefits which draws new business owners to a join a franchise instead of investing in their own start-up is usually the marketing support. The franchisor should offer a coordinated, well-resourced and professional campaign that allows the franchisee to focus more strongly on the core task of running the business in a day-to-day capacity.
Being a member of a network of business owners in the same franchise chain offers a wealth of support. There is no better way of assessing a situation than to compare it to one that is similar. The franchisor should be familiar with most scenarios, meaning they are able to offer franchisees expert advice based on previous experience to resolve any challenges they face, new franchisees can also call on the expertise of franchisees with experience in the network. This can help to eliminate the trial and error period that most new business owners will face when starting up a business.
Once the start-up and business development periods are complete, the franchisor should offer the franchisee extra avenues for career development. This could be in the form of training sessions with other franchisees or by providing additional insights into how the core business model is run. For example, some franchisors offer their franchisees opportunities to attend buying trips so that they are able to increase their product knowledge base and share this with their staff and customers on the shop floor.
The key points outlined above are just the basics. The most important thing a prospective franchisee can do is research a potential franchisor thoroughly and talk in length with them and existing franchisees. This will determine if the business is the best fit and whether they will receive the high quality support they need to ensure success in the long term.
About the author:
Gavin Culmsee is the General Manager of Bedshed.