Franchising is not a one-way street. Remember that the franchisor did not sell the franchisee any business. The franchisor is only selling the rights to operate the business under their proven formula. It means franchising is a mutually beneficial agreement where the success of both parties is reliant on one another. Each have a role to play for the success of the franchise. This article discusses the responsibilities of franchising.
Franchisor’s Scope of Responsibilities
- National marketing and advertising of their brand.
- Research and develop new products and services for the brand.
- Manage new products and services for the brand.
- Make every franchisee aware of the additional product or service
- Manage franchise territories to ensure that all franchisees have a large enough territory for enough business without infringing on another franchisee’s territory.
- Provide ongoing training to make sure that every employee is up to date and operating at the highest level.
- Evaluate the performance of the local franchisees on a regular basis to see if you’re doing well.
- Give advice on running a good franchise, or will always be available for advice.
Franchisee’s Scope of Responsibilities
- Pay the franchise fee.
- Pay the royalty fee.
- Making sure the entry level employees are trained properly on site in your location.
- Running the business according to the standard expected of the franchisor.
Remember that it’s a joint road to success as both the franchisee and the franchisor are working together to build a stronger brand and to grow the business collectively for the franchisor and the franchisee.
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