by Larry Reed | Aug 15, 2023 | Franchising
As a franchisee, you won’t form too many relationships as meaningful as the one with your franchisor. Your franchisor can help you understand all the different aspects of franchising as you begin your career. But like any relationship, the one between you and your franchisor needs to be nurtured to benefit both of you.
In this blog, we will discuss how communication, enthusiasm and teamwork can help to build a fruitful relationship between you and your franchisor.
Communicating Effectively
When it comes to any relationship, communication is one of the most important factors. When two people can openly communicate with one another, it helps build trust. For franchisees and franchisors, there are plenty of reasons why open communication is important.
If you as the franchisee have questions or concerns or want feedback about your performance, you should feel safe in asking your franchisor. The same goes for franchisors being able to speak with you about these things without worrying about your reaction.
Being Enthusiastic About Your Work
As a franchisee, showing enthusiasm for your work can have a positive effect on your franchise and help you to stick out to your franchisor. When a franchisor sees this enthusiasm, he or she will see that you not only enjoy what you do but that you take it seriously. This is important as it can help to build a strong connection between the two of you.
While the enthusiasm may come from you, the franchisor plays a role in fostering that enthusiasm. The training, support and constant communication he or she offers can help a franchisee continue to feel motivated about work!
Working as a Team
It is important to remember that while your titles may differ, you and your franchisor share the same goal of building a strong franchise to continue the brand’s growth. As a franchisee, you have insight into what happens daily in your franchise that may be helpful for your franchisor, and your franchisor has the experience of handling various situations that may help you!
Coming together as a team to implement marketing strategies, focusing on continued growth and how to stay true to the brand’s visions, takes work from the both of you. By working side-by-side, communicating and trusting one another, you can find success for your franchise.
Are you ready to start your franchising journey? Get in touch to learn how I can help.
by Larry Reed | Aug 1, 2023 | Uncategorized
Owning a franchise is a fantastic way for an entrepreneur to get a start in business ownership. Franchising allows you to work with a brand that has built its name already and has shown that it has a working and profitable system.
Franchisees are required to pay fees before they can take control of their franchise. This blog will discuss those fees and why they are important.
Franchise Fees
The first fee you will need to pay, and one of the most important, is the franchise fee. This fee allows a franchisee to become part of a franchise system. Franchise fees are one-time payments that range in price. Depending on how big the franchise brand is—and what the franchise fee covers—determines how much you will need to pay.
As a result of paying the franchise fee, you can now take advantage of the franchise’s brand name and trademarks. From there, you can then go and find an audience of your own to help your franchise grow.
Royalty Fees
Royalty fees are also important in franchising. The difference between these fees and franchise fees is that royalty fees are paid regularly. You and your franchisor can discuss how often these fees will be paid. Most will decide to make the payments either monthly or quarterly. While franchise fees focus on getting the ball rolling, royalty fees are there to keep the ball rolling.
A franchisee’s royalty fees allow for continued support from the franchise brand. This could include ongoing training, other needed services and marketing. The percentage that you will be responsible for paying will come from your gross sales and can differ from franchise to franchise. Royalty fees are also how most franchisors make their money.
Advertising Fees
Owning and operating a franchise takes a lot of work out of franchisees but also franchisors. In most instances, franchisors will be in control of any advertising that happens. This could be via social media, commercials and any other form of advertising available. These services are not cheap. This is where advertising fees for franchisees come into play.
Much like royalty fees, advertising fees are often paid regularly. These fees can help your franchisor afford national and local advertising, which will help build brand awareness and attract more customers!
If you are ready to start your career as a franchisee, get in touch today to get started with a free consultation.
by Larry Reed | Jul 15, 2023 | Uncategorized
One of the many roadblocks that can keep a prospective franchisee from owning a franchise is the amount of money it costs. Without proper funding, a franchisee won’t be able to pay the fees and costs of owning a franchise or purchase the necessary materials and equipment to get started.
Luckily, there are ways for franchisees to gain funding to help afford the franchise that they are interested in. One of those options is receiving financing from your franchisor. It’s important to know that not every franchise will offer this option, but some do.
This blog will explore why franchisor financing is a win-win for franchisees and franchisors, financing amounts and the requirements needed to qualify for financing.
A Win-Win Situation
Receiving funding from your franchisor is a win-win for everyone involved. You as the franchisee will receive the funding necessary to start your business, and the franchisor and franchise will be able to continue to grow with new locations.
A major benefit of going to your franchisor for financing is that they are already familiar with the franchise. They know how much things cost and can help make your job easier as they know the ins and outs of the franchise. Not only that, but there is the chance that this will help the relationship between franchisee and franchisor grow stronger because of their shared goals.
Requirements
When it comes to the requirements for receiving funding from a franchisor, those requirements are often left up to the franchisor to decide. While some franchisors may look for one type of criteria, another franchisor’s requirements could be completely different. There are a few general requirements.
Your credit will be assessed, and you will be asked for a personal investment of some sort and a developed idea for what you plan to do with the money. Franchisors take a lot of risk by providing you with funding. They want to make sure that it is in good hands.
Potential Financing Amounts
Much like the requirements to receive financing from your franchisor, the amount you receive comes down to the franchisor. The amount you are given is determined by the size of the franchise, your financial background and your desired amount.
Ready to start your franchising adventure? Get in touch today to learn how I can help you!
by Larry Reed | Jul 1, 2023 | Uncategorized
As a franchise owner, you will come up against many challenges in your career. One of the significant challenges that you may face is referred to as the “coattail effect.”
When a franchise experiences the coattail effect, this means that other franchises of the same brand are failing or doing poorly. Due to the performances of those other locations and the loss of reputation for the brand, you may see a drop in sales and the number of customers coming into your store. It could even go as far as you needing to close your business.
Luckily, there are ways for you to work to avoid these problems. Below are three methods you can use to overcome the coattail effect.
Set Yourself Apart
If franchise locations of the same brand as you are failing, then it doesn’t make sense for you to continue to do what they are doing. In order to get over the coattail effect, you should look for ways to make your location stand out.
If you can find products or services that other franchises don’t offer, highlighting them can help you attract customers. You should take advantage of anything that sets your store apart from other franchises of the same brand.
Focus on Local Marketing
A big part of working with a well-known franchise is that you have the chance to benefit from national and regional marketing. But if your brand is not doing well, then that type of marketing is not going to help you as much. Instead, you should put your focus on local marketing.
You can promote your store by getting involved in the community, conducting local advertising campaigns and finding ways to connect yourself with local organizations. Building a loyal local customer following can significantly help a franchise avoid the coattail effect.
Prioritize Customer Experience
It goes without saying, but customers are vital to the overall success of a franchise. You need them for sales, and you need them to help spread the word about your franchise’s products and services.
So, if you are trying to overcome the coattail effect, you should do all that you can to give your customers a one-of-a-kind customer experience.
This can be done by creating an atmosphere in your franchise that is welcoming and warm. Not only that, but you should prioritize personal interactions that leave a lasting memory. Customers will want to visit your location more!
If you are ready to start your career as a franchisee, get in touch today to get started with a free consultation.
by Larry Reed | Jun 15, 2023 | Uncategorized
Your business’ ability to make a profit is important for it to sustain itself and remain competitive, but it is also important for you as the franchise owner. It’s important to discuss with your franchisor to understand better how you, the franchisee, will be paid as well as how much.
This blog post will discuss three factors that contribute to franchisees’ earnings: a loyal customer base, sales revenue and cost savings.
A Customer Base:
It should come as no surprise that the success of a healthy business is dependent on a thriving customer base. Customers use the services or products that your business provides, but they also help spread the word about your business, which can lead to more customers. As your customer base grows, so will the amount of revenue that you bring in.
As a franchise owner, your salary is dependent on the amount of profit your business makes. If you are struggling to build a strong customer base, then you will see that reflected in the amount of sales as well as what you will make. But if your customer base is strong, then you should see an increase in your earnings.
Sales Revenue
While sales revenue may seem straightforward to understand, there is plenty that goes into increasing your sales revenue. But it, too, has a decisive role to play in what you as a franchise owner will make. To increase your sales revenue, you will need to change the way things work in your business.
New marketing plans that boost your social media campaigns, and include local advertising, will do a lot to build your name and attract more customers. It would be best if you also took it upon yourself to research sales trends. That way, you can determine how to stay competitive by tailoring any marketing efforts and possible offers to customers based on popular trends.
Cost Savings
Your franchisor has built relationships with vendors that provide equipment and supplies for your franchise. Oftentimes, these relationships include discounted prices for the things that you need.
This can save your business money—and, in turn, increase your personal earnings as your business will not spend as much buying necessities.
Are you ready to start your career in franchising? Get in touch today!
