Samstag, 17. März 2012

Franchise Training – Why It is Necessary

One of the major reasons people purchase a franchise is to acquire a business with a proven system. This proven franchise system should include an effective and comprehensive training program. Learn about the components of a successful franchise training program and find out why it’s so important for both the franchisee and franchisors. The main reason that franchisors provide training programs to franchisees as part of the deal is to ensure that all franchises are operated in an identical fashion according to the already proven system that the franchisor has created. The initial training also allows the franchisee to learn the operations of the business quickly and easily. Franchisors usually provide additional training throughout the franchisee's tenure as well.

You should expect to join a system that will provide you with everything that you need to know as you seek out a new franchise company. You want to be a part of a franchise system that respectfully treats you as if you know nothing about the new business. From the ground up, they will teach you all aspects of the business. Conversely, you should be humble and open to all of the teachings from the franchisor.

Initial and ongoing training in all aspects of the business operation is clearly a benefit of becoming a franchisee - as opposed to starting an independent business. Most franchisors are very good at training the technical and operational aspects of the business because it is what they know - running a restaurant, cleaning cars, whatever. But many of their franchisees may not have run businesses before, so they need training in more than just how to operate the restaurant or clean cars.

Initial technical training, either in the classroom or on-location at a company-owned outlet, or with another franchisee, generally follows the structure of the Operations Manual and gives a good grounding in the knowledge and skills required. How long this takes varies from days to months depending on the complexity of the business involved, but it is only a start. Refresher sessions should be available, as should programmes to introduce new products or methods. Where these sessions are held, and who pays for what, will again vary from franchise to franchise.

Item 11 of the Franchise Disclosure Document (“FDD”) requires a franchisor to disclose its contractual support obligations to its franchisees. This section outlines pre-opening assistance as well as ongoing assistance. It details the franchisor's training programs and any required franchise systems, such as computers and software. There is a great deal of information in this section of the FDD, but franchisees need to know clearly what training they will receive. Franchisees need to be given the proper pre-opening training so they can start successfully and the right post-opening training so this can continue into a smooth operation.

Franchisors need to construct and present quality training to their franchisees. Quite often, quantity takes the place of quality when it comes to franchisee training Since franchisees can only retain a certain amount of information from a training session, franchisor training should focus on the most important and critical components of franchise operations.

How Good Training Benefits the Franchisee:

• They understand the important components needed to operate the business

• Ensures a smoother and more successful franchise start-up

• Knows the skills his/her employees should have

• Can overcome problems and challenges that may arise

• Provides strong sales building and marketing skills

• Teaches ‘What works and what doesn’t”

• Efficient operation preserves franchisee working capital

• Increased franchisee profitability

There are several reasons as to why a franchisor needs to provide you with franchise training. First, as part of your franchise fees you paid for the training and will continue to pay for it as you pay your ongoing royalties. However, beyond that the franchisor wants you to be successful, because if you will be successful they will also be successful. A franchisor earns its revenue by collecting royalties from its franchisees. Thus, they want you to get through the franchise training as quickly as possible so that you can to start earning revenue and they can start collecting royalties.

How Good Training Benefits the Franchisor:

• Franchisees start-up their franchise correctly

• Minimizes franchisee mistakes and the need for franchisor staff to intervene

• More productive use of franchisor staff

• Higher probability of more successful franchisees

• Improve franchisee satisfaction and promote positive relations

• Improved franchisee validation

• A better franchise network

• Increased profitability

The Components of a Successful Franchise Training program:

• Teaches the critical elements and components of how to operate the franchise

• Includes ample time for Q&A and discussion

• The franchise operations manual and the training curriculum complement each other.

• Franchisor trainers are experienced, knowledgeable and credible.

• Includes simulated and/or on-site location training to impart ‘real world’ experience

• The training is long enough to provide sufficient time to learn the necessary business methods and requirements, while avoiding information overload

• Measures trainee comprehension to insure that franchisees understand and learn what is being taught. This could consist of follow up discussions at end of each training session.

• Utilizes role playing when appropriate

Franchisee training must be carefully designed, constructed and presented in order to maximize the learning experience of new franchisees. Training results should be measured so that enhancements can be made when needed. Franchisors should utilize an individual with proven training skills to administer the training program. Using an existing staff member who doesn’t possess the required training tools may prove costly in the long term.

Hence, you should expect to take part in the franchisor's initial or new franchisee training as soon as you join a franchise system. The training may be done telephonically, with a personal trainer, or at the franchisor's headquarters, depending on the system. Also depending on the complexity of the business system, the length of the training may vary from one day to one month. In order to determine how long the training is, where it will be held, how often it takes place, and whether you are responsible for the cost of travel, accommodations, and any materials, read the franchisor's franchise disclosure document (FDD) carefully.

You should expect to receive ongoing franchise training beyond the initial training. To reach out to their franchisees across the country, franchisors frequently use group conference calls and webinars. Most franchisors have an intranet system to connect with their franchisees with the power of the internet. The intranet provides the franchisees with access to the corporate office where they can send emails, read a franchise wiki or FAQ, access a document library where you should have access to an operations manual.

As many of the best ideas that are part of a franchise system come from the franchisees, seek a franchisor that understands that the training is not just a one way street. So, the best franchise training systems are mutual and not only have you in mind, but the good and betterment of the entire franchise system.

Franchise Advertisements for Best Marketing Advantage

Good franchise advertisements have never been more important nor had such a huge impact on the success of franchising. As franchising expands in an increasingly competitive marketplace – up again by 5 per cent last year, according to the 2011 franchise survey – all franchises must make sure that their brands stand out from the crowd. The most effective way to achieve this is through franchise advertisements, applied consistently to promote a business in every aspect of development.

So, what exactly is “franchise advertisements”? An advertisement is an umbrella term that covers everything involved in the process of taking a concept to market.

It embraces design and packaging, social media, paid advertising, public relations, websites, direct mail, newsletters, e-marketing, exhibitions and conferences, demonstrations, networking events and special promotions. With so many options, most people need some guidance and, given the importance of franchise marketing, you need to look carefully at a franchisor’s prospectus to see what they’re offering. If marketing is not mentioned in the brochure, remember to ask at the first meeting if it is included in the training. But, to go back to the beginning: while you are still a prospective franchisee, considering your options and trying to decide which franchise to choose, look carefully at each one’s marketing strategies.

Managing and owning a franchise business can be extremely rewarding. You get a chance to have a powerful effect on the success of a company and individuals who work with or for you and to make all the decisions. Franchise advertisements are a lot of responsibility. To support yourself, you will need to ensure that you keep the franchise business alive and growing and those who are working for you. Most franchisors have comprehensive marketing plans in place for the overall franchise. The national plan typically includes advertising campaigns, commercials via television and radio, Internet advertising, public relations, and direct mail efforts. Therefore brand recognition is widely established. Franchisors that do not manage marketing on a national level usually provide an outline for the franchisees to follow in preparing their marketing plan on a local level.

There are various options available in which franchisees can tailor the marketing efforts to the immediate area.

First of all, it is important that franchisees know the types of customers and their specific needs in their particular locations. Demographics and culture should always be taken into careful consideration.

Then franchisees should focus on promoting their products and services through advertising campaigns, public relations, and the Internet. Franchisees may also be linked into the franchise’s main web site depending on how the organization is structured.
In addition, it is critical to maintain a steady consistent customer base. Loyalty and reward programs tend to work well. Special promotions and coupons are also popular methods of keeping returning customers.

Further, franchisees should be active in local community activities and participate in charitable organizations if possible. They may wish to consider sponsoring activities such as local sporting events as part of this effort.

Marketing materials such as brochures and flyers can also be helpful in getting the word out about a particular franchise in the area. They may also provide information about specials that would attract new customers.

Franchises have a greater chance of success than independently opened businesses; however you still have to put effort into them. Therefore, you the franchise owner will need to find a way to make it happen, if your franchise is in need of more business. Grassroots marketing or advertisements are great ways to promote your business.

What is the best marketing and advertising mode for promoting a franchise company? Does it make sense to use social networks, franchise trade journals, industry trade publications, published franchise directories, entrepreneurial type magazines, radio, TV, or buying keywords on search engines? Yes, will be the answer. Often large franchise companies look at the data; the types of franchise advertisements they are running and what works and what does not and all those methods have been tried. Every now or then, if you'd like not have to learn the hard way, you can save a lot of money or waste advertising dollars on things which do not pull for you. Successful franchise sales are the best possible advertising for any franchise opportunity.

What does the marketing plan cover? Is it focused on selling techniques? Does it include social media, advertising, internet promotion, and PR? Does it include web promotion and links? Does it include marketing materials and templates that franchisees can adapt to use locally?

Does the franchisor employ a dedicated marketing specialist in-house, or retain a freelance PR and/or marketing professional, available to help franchisees as well? How familiar is the franchisor with Facebook, Twitter and all the other social media? How much help does the franchisor provide to franchisees? And, what elements of franchise marketing are provided free by the franchisor and which are charged to franchisees?

Success cannot be kept hidden. All successful franchisees are best franchise advertisements for the franchisor company. They would not need to spend so much money advertising, if more franchisors would spend more time making their franchisees successful and helping them; mentoring, nurturing, and assisting them. When things are working well everyone sees it and that is the interesting thing about franchising.

Even your competition will immediately try to imitate your franchise sales model and copy you. If at all a franchisor successful, that is another good way to tell. The best franchise buyers by the way are not the ones that you go out and recruit rather those that find you. They are already sold; they already know what they want to do. All you have to do is to take the order by looking at their application. Often advertising a franchise opportunity will also help your brand name, franchise sales, and it is more impressions and views in the eyes of the consumers and clients of all your franchisees, as well is a way to remind people that your opportunity exists. However, after people see successful franchisees in your system, you should never forget that your very best marketing advantage comes from word-of-mouth advertising.

Finally, referrals are always an important part of a marketing package. Referrals can be exchanged with other business owners or via existing clients. An incentive program with existing clients who refer new clients is a popular method of obtaining referrals.

Importance of Franchise Agreement in Present Market

A franchise agreement is just like any contract that you have ever entered into. It defines the rights and obligations of the parties involved. A franchise agreement in particular defines the relationship between the franchisor (the one awarding the franchise) and the franchisee (the one buying the franchise).There are legal, practical and operational issues that need to be negotiated in a franchise deal. The franchise agreement sums up the terms of the negotiations between the franchisor and the franchisee. The signatures at the bottom of the agreement signify that the agreement has been accepted and understood by all involved parties. A franchise agreement is the chief document demarcating any franchisor/franchisee affiliation and is lawfully obligatory for both parties. This document clearly states the compulsions, prospects and legal privileges of both parties and is the groundwork of every association within the franchise organization. These franchise agreements are formulated to ensure that the expectations and roles of each party are evidently described.

At present day franchising, there are regular conditions where a franchisee which is a corporation will desire to sell their privileges under the contract to a new party. A franchisor has to pay interest to assure that there is no unlawful or unintended transfer of confidential proprietary information such as marketing methods, operations manuals or secret recipes. Franchising through franchise consultants is the easiest method of entering into this line of business. Although it is not without its intermittent drawbacks, many business owners see franchising as an exhilarating and natural next step towards rising their business. Taking assistance from franchise consultants will definitely help.

Most established companies who are open for franchise have a standard franchise agreement that leaves little room for negotiation and special terms. This is actually good for a franchisee. This ensures fairness because negotiation skills do not have much impact on the final contract. Thus, if you buy a franchise of an established business, you are sure that you are getting exactly what the other franchisees like you got in their own franchise agreements. The franchise agreement will enclose detailed information concerning the responsibilities of both parties on how the business should be functioned. It also has information on how employees should be guided, how much the franchisor will be remunerated in royalties and fees, how long the agreement lasts, what region a franchisee can function in, what kind of initial training, continuing support and advertising they can look forward to as they open up and persist to run their operation. It will also delineate up-front payments, what will come about if the franchisee desires to transfer possession or sell the franchise, how disagreements will be resolved, and how and when the franchise agreement can be concluded.

A franchise agreement is very important. Herein is stated in black and white what your monetary obligations to the franchisor are and what you can expect from the franchisor in return. It should state in no uncertain terms the scope of territory to which your franchise gives you exclusive rights to.

A franchise agreement enumerates all the business operating practices that are allowed, encouraged and absolutely prohibited. The franchise agreement makes sure that you conform to the methods that were already proven to be effective so that you can be assured of your own success.

A franchise agreement protects your interests. If your franchise agreement says that inventory can be purchased through the franchisor at a 20% discount, then you can be sure that you will get this discount. If the franchise agreement prohibits franchisees to purchase ingredients from any other source except the franchisor, then you can be sure that the quality of your products will be at par with what the customers of the company expect from that particular company.

The franchise agreement is not there to confuse you but to guarantee that you will be getting your money’s worth. Treat it with respect by reading it thoroughly and asking questions if necessary. Only after you are satisfied with its stipulations should you sign it. And then, be sure to stick with it.

Rules and obligations should be adhered to in order to become a franchisee.

The objectives of a franchise agreement are to achieve the following:

To contractually bind the franchisor and franchisee by both parties agreeing to the relevant terms and conditions set out in the contract.

To provide protection to the franchisor and franchisee that can be relied on under relevant circumstances.

There is no legislation that governs the rules for franchising; therefore the franchisor has the power to set out terms of the agreement that must be strictly adhered to by the franchisor and franchisee. If any disputes were to arise, both parties would to turn to look at the agreement and determine which party has done wrong and how to correct it. It is therefore important that before committing to any terms and conditions the franchisee must either take time to thoroughly read through the agreement or seek advice from a legal professional or ensure that the agreement sets out clearly:

* Specific details of both parties.

* The duties of both parties.

* The grounds on which one party can terminate the agreement.

* The obligations of each party and when they should be met and in any case if they are not met how they should be enforced.

* The consequences of breaching any term or condition in the agreement.

It is essential for franchisors to make available a copy of this agreement to all prospective franchisees no less than five business days previous to they sign a franchise contract, so that it can be evaluated by an legal representative to make sure that there are no predicaments with the content or wording. It will include many of the similar issues covered in the Franchise Disclosure Document, but in added descriptions, exclusively tailored to each company.

Each franchise agreement will be diverse, as every franchise business functions in its own way with its exclusive techniques, training and operations. Because of this, it is imperative to have a guided franchise attorney go over the agreement to make sure that there is no irregularity or uncertain content that may evaluate too profoundly in support of one side over the other.

A franchise agreement can cause problems between the franchisee and franchisor if it is drafted badly therefore it is important to use the services of a legal professional for advice.

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