Before you take up a franchise of a successful business, you need to understand the various roles and responsibilities involved in the same. When you purchase a franchise, a business relationship is established between you and the franchisor and the terms of the same are mentioned in the financial disclosure document and franchise agreement. Even the franchisor will have a slew of responsibilities and it is important to understand the same before taking up franchisees.
The entire franchise network is held together by the franchisor. As a franchisor, you will be responsible for the brand’s credibility, image and goodwill and is often responsible for handling the network of franchisees. These are the responsibilities that run a range of tasks including marketing, training and more. The major roles of a franchisor include the following.
Financial responsibilities: When it comes to financial responsibilities, there are many that rest on the franchisor’s shoulder. There will be round ups of funds to support the units and admin expenses. Also, there will be setup costs, marketing resources, training, rental or leasing agreements and more.
Marketing responsibilities: The marketing responsibilities include social media campaigns, TV and print advertising, outdoor advertising, promos and offers, PR support campaigns, local store marketing support and designing flyers, brochures and other marketing materials.
Managing services: You will also be responsible to establish strategies that promote the franchise brand. This is the most crucial aspect as it is vital to establish quality standards and safeguard the franchises’ trademarks.
Training and support: As a franchisor, your job will be to offer educational opportunities and training to the franchisees and staff working under them. Adhering to the franchisee agreement, you need to provide ongoing support including technical, financial (in some cases), customer service and more to the franchisees. You should also establish proper communication with the franchisees on a timely basis.