The responsibilities of a franchise owner and a small business owner are on the same lines in many ways. The primary point of difference is that a franchise owner needs to maintain the quality and service parameters that the franchisor establishes.
Another important difference is that a franchisee is benefited from the established brand name of the franchisor. They make the best of the turnkey business model of the franchisor for running a business successfully. Working over a tried and tested business plan accentuates the odds of a franchise finding success.
Let us take a look at the top responsibilities that a franchise owner should undertake:
Sticking to a franchisor’s guidelines
Irrespective of the company one takes a franchise from, there are likely to be some rules that a franchisee is expected to adhere to. They cover areas such as accounting procedures, signage, hours of operation, branding, and pricing.
If an investor is passionate about the brand of the business they plan to invest in, then there would be no feelings of restrictions or constraint that are often felt by franchise owners. A franchisor will put in place business operations and behaviours that must be
Managing customer dealings
A majority of franchises involve customer dealings on a day-to-day basis. The interactions may be based upon the resolution of customer complaints. The customers may be demanding at times, and the franchise owner should patiently deal with them.
When the franchisee is an effective motivator, it augurs well for the success of a franchise. This is similar to the franchisee receiving training from the franchisor.
In most cases, franchisors make initial training available for the franchisees, which give them an in-depth overview of their roles and responsibilities. The franchise owner is then empowered to incorporate the training into the everyday operation of his franchise, and the training for his employees.
A franchisee’s training is frequently conducted at the parent company’s head office. This is just as in the case of HST, which conducts 1-on-1 training sessions for all new franchisees at their head office.
Typically, a franchisee needs to pay a fee to a franchisor, often a percentage of the monthly revenue. One of the franchise owner’s responsibilities is to make calculations of the monthly revenue and the royalties to be paid. A franchisee should further ensure that the royalties are paid on time.
Franchisors are likely to run marketing campaigns for creating awareness regarding their franchises. But a franchisee may choose to run local marketing campaigns, designate a budget, chart out a strategy, and implement it.
HSC Success Tutoring makes ongoing marketing support available for all franchises they grant. This comes in the format of innovative promotions, brand guidelines, and design solutions. The franchisees further have access to elaborate marketing material such as social media templates. They also forward an elaborate digital media catalogue that franchises can personalize and use.
Financing the franchise
All businesses need startup capital to have their business up and running. Going for a tutoring franchise opportunity is a relatively more affordable alternative in this regard because it will cost lesser than other franchising opportunities.
A franchise owner should still be in a position to gauge the capital requirements for building and outfitting the facility, and paying for the operating expenses while the break-even point is reached.
Success sends over a success kit to all their franchisees, which helps with outfitting the facility. It includes the furnishing that a franchise would require for the initial few months of operation. The success kit further includes digital peripherals such as tutoring modules, and empowers a franchise to operate with full strength, right from day 1.