Managing a franchise involves balancing relationships while not overstepping in the day-to-day operation of the franchise. Too little discipline and the situation may become chaotic. On the other hand, too much discipline may drain enthusiasm and creativity from the network, and lead to fewer people wanting to join in.
Studies of the industry have shown that the quality and intensity of the initial training of franchisees is one of the most significant factors that determine the success of a franchise network. Don’t overlook the quality of the initial training. You will never have a more enthusiastic and receptive franchisee than when they first join the network.
|Tips on How to Ensure Quality Training|
How Often Should I Contact My Franchisees?
After you have recruited and trained franchisees, regular contact is important both to encourage the franchisee and continue monitoring their performance. Some franchisees will need more ongoing support and guidance than others. It is important to provide this support for the long term benefit of the network. This does not necessarily require a long on-site visit, but it does require more than an occasional invoice or email.
Should I Finance a Franchise?
It is critical to maintain high and consistent standards throughout the network. Franchisees are very suspicious of any difference in treatment from one franchisee to another, so granting substantial concessions or favours to one franchisee and not another is never recommended. For this reason, we caution against franchisors being involved in minority ownership of franchisees or financing of franchises. If the franchisee needs funds to start their operations, they should apply to their bank manager, not to you.