Roles and responsibilities of franchisors
In the franchise system, there are two roles: the franchisor and franchisee. The two work together to create and develop a successful business idea. So what role each plays in relation to the others?
Franchise Dealer
Franchise Dealer has built a successful business and is willing to sell you the right to use this system, and everything that goes with it, to start your own business. An important distinction is that the franchisor does not sell you a business, he / she sells you the right to operate a business using an established system.
The aim of the franchisor is the same as any other business owner, increase the value of their business. In franchising, this is achieved by selling the right to use its business model, so it is more franchise locations to do business successfully. In this way, they expand their market, increase the value of the franchise, and brand as a whole develops. As the number of successful devices grows, is royalty income from the franchisor (the portion of the profits from each unit) is also increasing.
It is in the interests of the franchisor to continue to support you when you exercise this right to do business. Some things you can expect from a franchisor are:
* National professional marketing materials and advertising and campaigns: they’re always the captain of the fleet and manage the overall strategy of the brand.
* Management of products and services of the mark as a whole, including research and development of new products and services. A proven system of doing business.
* Protected area of the other units in the chain: in other words, how far they will succeed in your market area is a different unit as there are two shops enough to have good market penetration, and also enough space for each store to generate each company they need to function properly.
* Opportunities to own more than one device.
* A network of colleagues.
* Often, a buying cooperative, a group of people who together have more purchasing power and ability to negotiate prices than an individual business owner.