What makes a franchise a franchise?
The term franchise is one which many consumers and businesses understand, at its core level, it involves a person buying into a larger company for the right to trade with their name, products and systems. On a more technical level, the word “franchise” refers to the contractual relationships between both franchisee and franchisor. So, we know what franchise means, but what makes a franchise a franchise specifically?
Brand and reputation
The key thing to remember about franchises is that when buying a franchise, a franchisee will be buying into a brand. A company’s brand name and reputation are, without question, it’s most valuable asset. A franchisee’s business will, therefore, be a reflection of the larger brand, not of themselves as a solo business owner.
To a consumer, who runs the business is rarely their top priority, especially if they experience the expected quality of services, products or customer service when they visit the franchisee’s premises.
Bigger brand names carry a lot of sway and trust with consumers, who will remain loyal to the company even if they are visiting different branches in different locations. Branding and reputation is a key factor that separates franchises from other types of business.
Franchisee’s main concern should be to meet, and often, exceed the consumers brand expectations so that they remain loyal to their franchise site, rather than another.
Supporting, training and providing systems
Another reason that franchisees are attracted to this particular business model is the franchisor will have an established training, managing and support system in place to help them.
To maintain their carefully crafted reputation, large companies will invest in technologies that will enhance their products and sites, research and develop their products and services, provide marketing or advertising strategies and provide continued support and training for their staff.
All of these bonuses, paired with the brand name, creates an unbeatable one-two punch that a franchisee can profit on. Receiving training on established protocols of working, staff mentoring and tried and tested in house systems allows franchisees to focus on what is most important; providing the customer with the first-class service they want to deliver to put their franchise on the map.