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Making the Franchise Engine Work
 

Making the Franchise Engine Work

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FREE Franchise Consultation: Using our customized model for research, we’ll present you with 3 choices of franchise concepts to suit your tastes. This meeting will take place within 30 days of our ...

FREE Franchise Consultation: Using our customized model for research, we’ll present you with 3 choices of franchise concepts to suit your tastes. This meeting will take place within 30 days of our first consultation. Guaranteed. http://www.truittfranchising.com

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    Making the Franchise Engine Work Making the Franchise Engine Work Document Transcript

    • ==== ====FREE Franchise Consultation: Using our customized model for research, we’ll present you with 3choices of franchise concepts to suit your tastes. This meeting will take place within 30 days of ourfirst consultation. Guaranteed.http://www.truittfranchising.com==== ====How To Achieve The Basic And Most Obvious Goal Of A Franchise: To Make The RelationshipBeneficial To Both The Franchiser And The Franchisee.Franchising can be likened to having a car after a trip to the car dealer. Once we are done withchoosing a franchise or deciding to franchise our business, we would need to address this crucialquestion: in the same way that we need to get the car out of the dealers premises after paying forit, in the same way that we need to get the car out of the dealers premises after paying for it, howdo we make the franchise work once its in our hands?Much has been written on how to franchise a business or to choose one, but this particular phaseof franchising is simply the tip of the iceberg, so speak. It is making the franchise work making itsucceed and grow into a viable and vibrant business thats really the heart of the matter, and Imust say that this is a challenge that is bound to test the maturity of both the franchiser and thefranchisee.The basic and most obvious goal of a franchise is, of course, to make the relationship beneficial toboth parties, but even then, we must recognize that our actions in going into a franchiserelationship may not necessarily be motivated by the material benefits that we can derive from it.It could be that the benefits we expect are primarily social - "I want to own or belong to asuccessful team." "I can prove my business has excellent potential."- or psychological- "I justwould love to do what franchise concept calls for." "by franchising, I can now expand mybusiness." - or perhaps even emotional - "I will need a support system to start my business." "Iwont be alone but have other entrepreneurs managing similar branches." Still, the bottom linew0ill ultimately be the financial benefits that both parties can derive from the franchise relationship.Indeed, franchising may be distinct from other means of expanding a business, but the expectationof a good financial return will always be at the root of it.As in driving a good racing car to peak speeds of up to 220 kilometers per hour, you can make thefranchise engine work at peak efficiency only if all of its components are working smoothly andharmoniously. Franchises are like vested cars in races -they have to be very well maintained andtheir parts must always be kept in tip - top condition.So, to pursue the analogy further, if your franchises were a car, how would you make it work soyou can derive the maximum benefit from it and harness its full potential?The Operations Manual
    • The first thing to do is to make the franchise Operations Manual work for you.Oops! Dont make the mistake of keeping that manual in a secure and safe place or, even worse,keeping it under lock and key. The Operations Manual is meant to be understood and regularlyreferred to as you operate your franchise. You must read and fully understand the operatingmanual of the car. Why? Its because that car manual identifies all the parts of the car, explainshow they function, and shows the user how to maintain them. In the same token, the FranchiseOperation Manual contains all the information you need to make the franchise functional, whetheryou are the franchiser or the franchisee. Because it prescribes in detail the standards of thebusiness model, the Franchise Operations Manual is what will enable the franchise system toachieve uniformity and consistency in its implementation.The franchisee should use the Operations Manual as the primary guide for running his or a staticand inflexible set of rules. The franchiser should regularly update and improve it to enable thefranchise system to keep up with technology. It wont be an understatement to say that a franchisesystem that doesnt regularly update its Operations Manual is headed towards disaster sometimesoon.The Communication FuelTons of articles have been written about the importance of communication not only in franchisingbut also in general. To go back to the car analogy, what will keep the car running to our desireddestination is fuel. In a franchise system, the equivalent of the cars fuel is communication. It iscommunication that will enable the major participants in the franchise system - the franchiser andthe franchise - to achieve unity of vision and objectives and to agree on how to achieve them.When there is basic acceptance of the importance of often dialogue between franchiser andfranchisee, the franchise system is greatly enriched and grows much faster.When the unity of minds between franchiser and franchisee is the goal, the communicationdynamics in the franchise system be comes more challenging and exciting. On one hand, nolonger will you have a franchiser who thinks his or her franchisees are just there to collect fees andnot to provide support. In such a situation, even if the initial atmosphere may be stiff anduncomfortable, at least the franchiser and franchisee can now sit down in a spirit of openness anddialogue.The franchiser often has to make the first move by going back to the basics, particularly on whythere is a franchise in the first place and why there is a franchise in the first place and why he orshe decided to franchise the business.Then the franchisee can begin to verbalize his or her reasons for choosing the particular franchiseamong all his other choices. The dialogue can continue and move on to the identification of thepresent concerns of both the franchiser and the franchisee. They need to view these presentconcerns from the perspective of initial goals and objectives, and when they do they will find thattheir goals are not contradictory but actually the same, thus leading to a mutual desire to continuewith their franchise relationship. Agreements can then be sealed with a handshake and bothparties can leave the room in high spirits and on a positive note on how to further grow thefranchise system together.
    • Preserving the Brand or TrademarkIn the past, brands and trademarks were not given an actual value; today, however, the value ofcompanies goes far beyond their actual physical assets due to the value of their brands andtrademarks. The likes of such giant global brands as Colgate, Coca-Cola, and McDonalds, forinstance, are of such immense actual value. For this reason, preserving the brand in a franchisesystem benefits not only the franchise but its franchisees as well.Some franchisees often frown at their franchisers strict rules in the use of the trademark; forinstance, in the printing of promotional materials that calls for written approval of the franchiser inits use. This is actually an unjustified reaction. The preservation of the integrity of the trademarkshould be a paramount concern not only to the franchiser but to the franchisee as well, fro it is thetrademark that the customers will remember about the franchised product or service, and it is onlywhen a customer gets a "wow" experience from using that product or service - translated to ahighly favorable perception of the brand - that a franchise system can expect to add that customerto its coveted loyal and regular customer base.So important is the franchise trademark or brand that some franchisers even take pains inpreparing a corporate identity standards manual to give precise specification for its use down tohow a brand should be rendered in pantone colors. It is therefore extremely important for allparties in the franchise system to work closely together in communicating a consistent trademarkor brand to the market and to its various other publics.Constant MaintenanceThe productive life of a car greatly depends on the constant care and maintenance it receives, andsome classic cars are even known to outlive the life of its owners. What lesson can we derive fromthis analogy? It is that the franchise systems engine could be expected to continue producingenergy for growth only when the franchiser and franchisee are one in making sure the systemundergoes constant improvement. Indeed, while improvements in the franchise operation manualare a must, the entire systems itself also need to undergo upgrading periodically.The big questions to be asked are these: Is the franchise model still relevant to the changingmarket? Can the franchise application process be improved to screen applicants even better?When was the last time franchisers and franchisees sat down together to review the franchiseagreement? Do franchisees regularly analyze their local market and their position? Is there asustained effort to promote and market the brand? Are franchisees consistent in doing local storemarketing?Are changes needed in the format of meetings and conferences so that both franchisers andfranchisees actually look forward to attending them? Does the franchise system regularly monitorits present market share versus its target?Is there a corporate planning conference participated in by both franchiser and franchisees? Areinitial franchise fees and royalties reviewed regularly? Are there comparative studies conducted tocheck the financial performance of both the franchiser and the franchisees?These are some of the questions that need be answered if the franchise system is to outlive the
    • life of its founder, like what McDonalds has achieved by maintaining very strong and viablefranchise system despite the demise of Ray Kroc.Making the franchise engine work will always be a challenge to both the franchiser and franchisee,but when both parties keep their focus on the mutuality of benefits, the task need not be anadversarial and unpleasant one.Visit my web site at http://www.gmbfranservice.biz Armando together with his spouse Erlindabegan their company called GMB Franchise Developers Inc., in the Philippines in 1993. Thecompany has since assisted over 200 various companies expand via franchising within the countryand international. Mr. Bartolome, is the Philippines acknowledged Franchise Guru and has givenover 200 seminars in the country, Asian Regions, Middle East and North America. ERLINDASABIO BARTOLOME is a Certified Franchise Executive through the International FranchiseAssociation in Washington D.C., USA. She is also the Managing Director of GMB FranchiseDevelopers.Article Source:http://EzineArticles.com/?expert=Erlinda_Bartolome==== ====FREE Franchise Consultation: Using our customized model for research, we’ll present you with 3choices of franchise concepts to suit your tastes. This meeting will take place within 30 days of ourfirst consultation. Guaranteed.http://www.truittfranchising.com==== ====