Fundamental Traits of Successful Franchisor:
Needless to say, not all franchisors are the same. There are franchisors of both kind: good and no so good. Of course, you wouldn’t like to sign an agreement with the latter. When the traits of successful franchisors are analyzed in detail, some common qualities can be traced in all of them again and again. Following is the list of fundamental traits and attributes that great franchisors have in common.
1. Honest, Upfront and Transparent.
Franchisee is always a partner in the franchising business. When the franchisee/franchisor relationship is successful, the franchise is bound to flourish. Like any other relationship, the present one demands honesty and transparency. A successful franchisor is an honest one and always open about snags, if any faced by the business at present or may be in the near future. He is always up to adapt with the space of time and learns from the mistakes, ensuring that the same gaffes are not repeated. As a franchise partner, it’s important to stay updated and informed at every stage about the latest developments at the franchise level and how the same can impact your business growth.
2. Communication Skills:
Open and clear lines of communication would yield better results in the franchisee/franchisor relationship and business growth. Sharing of ideas, best practices, feedback, input between franchisee and franchisor ensures that the reputation and quality of the brand is maintained uniformly. When there is clarity and consistency in communication; the business growth, franchisee-franchisor relationship and team to get work done runs well.
3. In-depth Knowledge about the Sector:
A successful franchisor has deep understanding of the sector. This knowledge about the sector can be derived from frequent sector-specific learning and market research. This knowledge helps him adapt with changes and trends in the industry ensuring that the franchise runs with time and not fall behind.
Even if franchisee has adequate industrial experience, he is mostly not familiar with the operational practices of the business especially in the initial phase of franchising. Franchisors should provide qualitative initial training scheme lasting somewhere between a day and several weeks. Also, it is on the part of franchisor to offer assistance related to site selection, lease negotiation, site set-up, financing and recruitment. Franchising is often defined as a more supported route to business ownership. If a franchisor compromises with the quality of support to be provided to the franchisees, he limits the chance of success of entire franchise network.
5. Leadership Skills:
A good franchisor has clear set of short-term and long-term goals. In order to instill this vision in the franchisees and employees, he should have the necessary leadership skills. Every franchisee would prefer to follow a franchisor who has clarity, determination and passion about what they look forward to achieve in the near future. Since franchisor is at the forefront of the business, he should have the apt personality, determination and resilience for elsewise entire franchise network will have to face the repercussions.
It is not healthy for most businesses to operate and develop in the vacuum and isolate itself. In terms of internal collaboration between franchisees and external collaboration with other brands and services, there are more benefits to the brand working together.
As a franchisee, if your franchisor is not a businessperson with the aforementioned traits and attributes, then there is a high chance that you have to bear the brunt of his utter ineffective approach to business. Want more Insight? Speak to one of the team members of Franchise Insider.
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