Franchisors are the people who own the business, or the so-called “mother company”, from which a franchise can be bought. They are the ones who put up the business, usually from scratch, and then offer franchises and branches up for sale as part of their expansion plans. Franchisors determine the rules of agreement involved in the agreement. They decide on whether or not to grant a franchise license to an applying franchisee.
In buying a franchise, you would definitely and most probably be directly coordinating with the franchisor. There may be meetings and discussions about the franchise they are offering before the actual contract of agreement is drawn up. This is the time that you should already be trying to get to know who your franchisor would be.
Getting to know the franchisor of the business you are trying to buy is important. If you know what kind of persons they are as well as their preferences, you would be able to make adjustments in terms of transacting with them. Therefore, you can foster a harmonious working relationship with them. To a point, you would also be able to gauge the very nature of the business you are buying. As people believe, the kind of person is reflected on the working principles of the business even those that are considered work from home opportunities.
As most franchisors allow the sale of their franchise with the condition that the franchisees would implement the same set of business principles and strategies. If this is the case, then you should know your franchisors and how they work. Here then are some of the things that you should know about franchisors:
1. How do they run the business? What are their working principles? Knowing how franchisors operate would give you an indication as to how the business is run. If most business strategies being utilized involve third-party agencies, this may indicate that the franchisors put a premium on fast growth and production. Others prioritize quality of their products through mostly in- house manufacturing operations. Even the way that the franchisors relate with their employees would tell you if they give importance to the capabilities of their staff or if they maintain a strictly-business relationship. Knowing whether or not they are amenable to work from home opportunities is just as beneficial for those who prefer online franchises.
2. What are the marketing strategies they utilize? There are franchisors who engage in expensive marketing campaigns, e.g. tri-media advertising, to maximize the sales potential of their business. There are also those who utilize more affordable campaigns and events. Others choose to expand their market reach through the use of web-based marketing. These are all important considerations because many franchisors expect that the same marketing strategies would be utilized even in remote branches and franchises. There may even be times when you implement campaigns already determined and planned by the company itself.
3. Is there any personal information about your franchisor that you need to know? Sometimes, a good working relationship must be complemented by a certain level of friendship. At the very least, it pays to get to know franchisors in terms of their family life, non-business affiliations, and principles. There may be people who could consider this as prying because it would not affect the operations of the business. But there is a benefit to be gained from this. If you know your franchisors outside the business, you would know the life principles they uphold. These principles are often the ground on which they have built the business so it would help you understand the franchise more. It would also help build trust and loyalty between you and your franchisor.
Getting to know franchisors is just like understanding work from home opportunities. In fact, there are more aspects of franchisors that you would have to learn about than the actual business you are trying to buy. Therefore, take the time to communicate with franchisors. Let them know and feel that you are after a good working relationship and not just the business itself. If you can, befriend them. Make sure that they trust you and that you can trust them back.