Question

 

What kind of support does a franchisor need to provide? why is it important?

Answer 1

Economic support. Not all franchisors offer financial assistance but some have franchisee funding programs available.
Location selection. Some franchisors will help franchisees select a location for their franchise, or may select a location, leaving it impossible for the franchisee to make any choice. The benefit of the franchisor choosing the venue is that they have experience finding good locations.

Manual Training / Operations. The franchisor offers a comprehensive operations manual that includes instructions for executing their operating system to run your business. It sets franchise rules, requirements, and criteria, and requires the franchisor to coordinate and identify unique job and task responsibilities. The manual includes material on employee positions in the enterprise; the main procedures and protocol; performance and management expectations. You can need extensive training about the operating system and business as a whole before you can open your franchise.

Advertisement. Most franchisors are initiating advertising efforts, either at the national, local or both levels. Such programs can be in the form of advertisements on television and radio, direct mail promotions, and efforts in public and media relations. Most franchisors expect franchisees to pay into a fund to cover those expenses, or they may provide a cooperative agreement where expenses are shared.
Aid. Most franchisors provide these administrative (e.g. , human resources and accounting) and/or technical assistance on a regular basis. Many major franchisors have hotlines that they can call for help from franchisees. Franchisors may advise on employee issues, compensation standards and other issues related to the franchise