Operating your franchise business
If you're in the franchise business you're already a few steps ahead of the game. You're working with a proven operating system, an established brand, and you have your franchisor's resources to help advance your business. What more could you ask for?
Don't expect everything to fall perfectly into place now that your franchise is up and running. The franchise business is all about maintaining relationships with your franchisor, your staff and your customers. Fostering a relationship with your franchisor is an integral part of running your franchise.
Franchisors often contact their franchisees through a 'field representative' who acts as a middleman. The field representative works with the company and the franchise to resolve strife should conflict arise. Remember, compromise can be necessary for the success of your franchise business.
Adhere strictly to franchise regulations once you are in operation as franchisors have the right to cancel the contract if franchisees deter from the system. However, you must remain flexible and open to change. Since you are signing on with a company for a long time (terms can last 20 years); realize that the company can change the direction of the franchise whenever it wishes.
This team player mantra holds true when dealing with your staff. Solid, reliable employees are priceless and can add to or detract from your business. Your employees are just as important to your business as your franchisor and customers. Vary boring duty assignments so your staff remains enthusiastic. Always keep your eyes peeled for talent and treat your employees with respect.
Now that you're in operation, you have to attract, and keep, customers. Not every franchisee can afford large advertising campaigns; investigate smaller options and focus primarily on your local customer base. Get involved in your community, this will help promote advertising and brand awareness. Sponsor local events such as school activities, provide food and/or supplies for charity functions; get your name out!
When expecting a return on your investment, be aware that success depends on all these components and more. Successful franchisees can see their profits soar but never attempt to over-project your return, for this is the No. 1 way to end up in financial and franchise, trouble. According to Entrepreneur Magazine , the return on your franchise investment has nothing to do with the original amount of money you put into the business; with no way to calculate the money you might make, it's always best to play it safe and under-project.