What Are 3 Things That the Franchisor Often Provides to the Franchisee?

By Franchise Information September 12, 2022

Franchising offers the best of two worlds. As a franchisee, you’ll have the freedom that comes from running a business of your own, but you’ll also have the support of an established company. What are 3 things that the franchisor often provides to the franchisee? This guide will name three key areas and can also help you learn what sort of questions to ask a franchisor before investing.

1. A Proven Plan

The greatest advantage that the franchising model provides is a tried-and-true business model. The franchisor offers an established plan for success, eliminating — or at least minimizing — the risks associated with first-time business ownership.

What does that mean practically? For starters, it means you don’t necessarily need a lot of industry experience to thrive in the company.

Many times, the franchisor will offer their franchise owners training to get started. This can include basic orientation to the company’s policies and procedures as well as training on how to perform the essential duties of the job.
franchise provisions

Are you considering investing in a franchise? Before you do, you might consider some of these essential questions to ask a franchisor:

  • What training do you provide your franchise owners?
  • Does the franchise have an operating manual?
  • How long does it take for a franchise to get started?

In addition, many franchisors will help choose a business location; doing so helps increase your chances of success. All of this means that you can get started in your career without having to do a lot of guesswork as to the best practices. This will significantly streamline the awkward startup phase of your business.

2. Access to Supplies and Equipment

Most businesses will require specialized supplies or equipment as part of their regular operation. Again, this is why having an established business model can be so important. The franchisor will usually have a clear understanding of exactly what you’ll need and can connect you to suppliers and vendors to help you get started.

What are 3 things that the franchisor often provides to the franchisee when it comes to supplies and equipment? Depending on your industry, your franchisor can offer assistance with things like:

  • Finding the best deals on your equipment
  • Purchasing the right inventory and products
  • Installation and training on using the equipment

Typically, franchises rely on the same type of equipment in all of their locations. This means that franchisees starting a new franchise that already has many locations can usually secure a better deal than if they were buying equipment on their own since the franchising company would most likely be buying these materials in bulk.

Additionally, you’ll be able to coordinate with the franchisor when it’s time to reorder supplies and inventory, helping you always maintain a consistent work environment for you and your employees.

3. Ongoing Support

Your franchisor’s support goes well beyond the initial startup phase. What are 3 things that the franchisor often provides to the franchisee during the regular operation of the business? These things include:

  • Marketing materials
  • Administrative support
  • Ongoing training/training materials for employees

In many cases, the franchise will already have a lot of recognition among your customers. That means you’ll be able to tap into a built-in customer base from day one, easing the burden of trying to market yourself to your community.

However, this ongoing support often comes at a cost. In addition to your one-time franchising fee, many franchisors charge a monthly royalty fee, often a flat rate or a percentage of your gross income. Others will charge for the use of their marketing materials such as signage, flyers, and coupons.

Here are some good questions to ask a franchisor about their continued support:

  • Do you charge monthly royalties?
  • Is there a separate marketing fee?
  • What is your marketing plan?
  • Do you provide administrative or bookkeeping support?
  • What training materials are available for employees?

Admittedly, this can be something of a balancing act. For instance, monthly fees might cut into your profits a bit, but it’s worth it to receive the support of a nationally-recognized franchising organization.

Similarly, the support you receive from the franchisor can help you quickly bring your staff up to speed and maintain momentum as your company grows.

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About the Author - Franchise Information

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