In the franchisor-franchisee relationship, corporate responsibility extends far beyond simply selling a business and handing over logo rights. If the business and the franchise are to succeed, the franchisor-franchisee relationship must remain strong throughout the duration of business ownership. While both parties have legal and financial obligations to each other, there are also social responsibilities that should not be underestimated. Here, we will discuss a few important responsibilities of a franchisor.
Distributing Proprietary Products
If the franchise is built around offering a proprietary product, all franchisees must have access to the products, whether this means that they sell the proprietary product or that a proprietary process is used to manufacture something.
System and Processes
A major reason why business owners opt for franchise investment rather than starting a business of their own is the proven, successful business model. When a company is able to franchise, it is because the business model is able to be reproduced and still work. Franchisees rely on the systems and processes of the corporate model to build their business. It is the corporate responsibility to provide policies, procedures, and business practice models to franchisees.
The brand is what franchisees buy into. It is corporate responsibility, as well as that of each individual business owner, to continue to positively build the brand. Individual business owners have a responsibility to conduct business so as to bring credit to the brand. Franchisors have the responsibility of building the brand, nationally. This means continuing to enhance the brand through effective marketing and expanding locations. Innovations that keep the franchise ahead of the competition are the responsibility of the franchisor, but the ideas can be generated by savvy franchisees.
Marketing and Brand Reputation Management
While the franchisee is responsible for marketing in their assigned market areas and maintaining a good reputation for the brand by conducting business in a becoming way and abiding by corporate policies, the franchisor is responsible for maintaining national marketing efforts and building the brand’s reputation as a trusted entity in the public’s eye.
Providing Ongoing Support
One of the benefits business owners see in franchise investing is the ongoing relationship with a franchisor. Afterall, business owners recognize that the franchisor built a successful corporate structure and continues to gain success by nurturing and growing the additional business. Ongoing support doesn’t mean that a franchisor should take on the day-to-day responsibilities or give money to help a drowning franchisee. What it does mean is offering training, advice, and access to resources that will help the franchisee build their business.
Communication is the most important part of any relationship. Keeping an open line of communication is the responsibility of both the franchisor and the franchisee. The franchisor is responsible for being approachable and offering a way to reach out if needed. Communication is part of the customer experience and in the franchisor-franchisee relationship, the franchisee is the customer.
One of the main corporate responsibilities that a franchisor owes a franchisee is leadership. As a corporate franchisor, you are the boss of all the businesses that carry your brand. Without leadership, the business is nothing more than independent businesses donning an arbitrary logo. Share experiences and keys to success while continuing to lead the franchise in the direction of the corporate business plan.
Not every business is franchised nor is every business franchisable. When a business is able to be franchised, it is because there is an established model of success that can be replicated and built upon. As a franchisor, you have trusted business owners to carry on your legacy and expand your brand. As a franchisee, you have taken the opportunity to be a part of something tried and true. In every relationship, each member has responsibilities to the other. If you are looking for a franchise that understands corporate responsibility, contact Sign Me Up Franchise.