Sarah D
Franchise Exploration

Working with a franchisor – what it’s all about

Working with a franchisor is an insightful way to be a business owner with an established reputation before you begin.  This week, we bring you some ideas of what you should expect and be prepared for when working with a franchisor. Insights like these can also help you determine what questions you should be asking as you start interviewing and researching your short-list of choices.

What you want from the franchiser

The most significant advantage of investing in a franchise is that you are opening a business that already has an established reputation and brand. A strong brand and reputation take years to build yourself as an independent business owner. These franchise companies have not only proven their success, but they have created a model for others to follow in their footsteps and achieve the same level of success as they have. Franchisees expect everything they need to operate their business that matches those standards.

Brand integrity

Franchisees expect their parent company to maintain a stellar reputation for quality and service in their industry. This expectation starts at the corporate level and extends to all branches and franchises so that each business enjoys that reputation of excellence. That reputation is probably part of what lured you to considering your shortlist of franchisers to invest.

Intel and strategy

A franchise should be able to provide you with data, intelligence, demographics, and strategy that you will require to be a successful competitor in your area. Many even have territories defined and optimal locations for the placement of your business.


As a franchisee, you are investing in their recipe for success and expect training on how to launch and run your business. Training methods differ, so this is an essential question in knowing what to expect for training and ongoing support. For instance, one franchise may provide training videos, while another sends you a transition team for first hand on the job training for you and your staff.

Expert marketing

Corporate success rarely occurs without a winning marketing program. As a franchisee, you should have the same access to that level of expertise for your business, as well.

Collective bargaining

Franchises should generate great discounts when purchasing in bulk, and franchisees expect to benefit from that practice.

What the franchiser wants from you

In exchange for the inside-scoop value that the franchise provides, they also have expectations that they extend to each franchisee to ensure the overall success of the brand. Again, these expectations may vary, so formulate your questions to make sure you have a crystal-clear picture.

Term of commitment

Franchisers expect a defined commitment to operate with their franchisees. Ten years is a common term of said commitment for the partnership between both parties. At the end of that commitment term, both sides may decide to continue their partnership or separate.

Royalties and fees

Franchisers expect to gain an amount of profit from the partnership with their franchisees. As a new franchisee, you may be required to pay a deposit or buy-in fee, followed by periodic royalties based on the success of your franchise. Percentage-based royalties keep the franchiser inspired to help their franchisees succeed, so both parties are encouraged. All collective benefit actions, such as marketing, will often have the fees split between the corporate office and each franchise in the region.

Standards of excellence

Franchisers provide you a recipe for success not only for your benefit but also to ensure that every franchisee maintains the same methods of doing things. By supporting these standards from the franchise, customers are never disappointed between one franchise to another. The only downside is with innovative ideas. They must clear across the board by the corporate office before you can implement any variances to the collective practices.

Consistency of product

To effectively bargain for volume discounts in pricing for materials and supplies, each franchisee is expected to buy from the same resources to keep prices low and maintain the same quality standards between all locations.

Get someone on your side

When it comes to such a significant investment in your life and your future, having an expert by your side speaks volumes. A franchise consultant like Hundred Acre Consulting in your corner will help you to think of everything mentioned here and more.  Contact us today to get started!

Leave a Reply