What do franchisors do

Here are four examples of the type of support the best franchisors provide. Most franchisors provide initial and advanced sales training to franchisees. But some step up their game: they send their own training staff into local markets and help franchisees improve at generating business. They develop mentoring programs so franchisees can share knowledge and best practices.

They may even bring in outside experts to train their franchisees. Effective marketing is key for most franchises. The best franchisors continually evaluate, update, and improve their advertising materials. In a period where every company is facing the crunch of a tight labor market, franchisees provide the local management and local recruitment of labor necessary to open units and deliver to customers the high quality of service and products they demand.

But to succeed today, all businesses must deliver on the promise of their brand: high-quality products and services delivered with consistently high customer service. It has historically been the strongest draw for choosing to franchise. When done well, franchising has an extraordinarily low rate of failure and, contrary to popular beliefs, is not overly burdened by regulations or excessive litigation.

Franchising is not limited to fast food, video rentals, or automotive services — it finds its roots in ancient China, and was used primarily by governments throughout the Middle Ages. It first appeared on the U. It boomed in the '60s, policed itself in the '70s, and matured in the '80s. Since the s, it has continued to outstrip the achievements of the rest of the economy. In the United States, franchising is the primary vehicle that has successfully taken small businesses and grown them into national chains.

Overseas, American franchisors are a world force, with the transfer of business technology being widely viewed as a stabilizing force in emerging economies. In turn, we now see promising growth in international franchising - overseas franchisors using the franchising model to gain a foothold in the U. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. MSA can provide guidance on developing a successful and sustainable franchise system that supports your franchisees for mutual success.

Key Roles of the Franchisor. Successful franchisors share some common attributes: They are motivated to share their experience and know-how with their franchisees.

They provide their franchisees with the tools needed to operate their businesses to brand standards.

They are focused on ensuring that each franchisee operates to system standards. The Franchisor's Process The franchisor owns the brand and the operating system that they license to their franchisees. Do you have further questions about the franchisor's role in a franchise system? Get Strategic Advice.