If you are ready to consider buying a franchise you need to review the level of support you will receive from the franchisor. This will be a paramount consideration for you as you take on the challenge of running your own business.

Whatever the state of the economy, every business has peaks and troughs. So if you are looking to buy a franchise, there are certain factors which you should look for in a franchisor to find out if they are likely to help you in a tough time.

Four ways a franchisor can support you

1. Profitability

Many prospective franchisee fall in love with a concept, believing that it is the new big trend. However it is essential to ascertain whether the business will offer long term sustainable profitability and generate a sufficient return on your investment.

2. Training

The franchisor should be able to demonstrate that they have the right training programs to make you successful.

3. Systems

The business is easy to operate with all the back office systems in place, so that you can focus on your core business rather than be buried in administrative detail.

4. Marketing

The franchisor should have the marketing programs to firstly launch a new franchise and secondly to provide an ongoing local area marketing program for individual franchisees.

Things to consider

Who will be offering you support on a day to day basis? Does the franchisor have field managers who visit you regularly or are you reliant on phone calls to head office?

Of course you are going to need support but the key factor when deciding on buying a franchise is you.

• Will you commit to the business and give it your full focus?
• Will you follow the system and give the best possible customer service?
• Will you develop a business plan, ensure that you have sufficient working capital in the business and control your expenses?

The enlightened franchisors do their best to ensure their franchisees are satisfied with their business opportunities and are profitable. This satisfaction is important as the system needs franchisees to concentrate on the running of their business rather than complaining to fellow franchisees and the franchisor.

Do other franchisees give me confidence?

The future recruitment of new franchisees depends on the success of their current franchisees. Each new prospective franchisee is provided with a list of current franchisees and is encouraged to call any of them to gain feedback on how the franchise works for them.

If a number of responses were negative about the business, then the franchise buyer is going to look elsewhere. This will have a big impact on the franchise system’s ability to both grow new units and attract quality candidates as franchisees.

This will also impact on the ability of a franchisee to resell their franchised business in the future. This is important, because the franchise opportunity should be an attractive one and easy to sell for a good price. After all, this is one of the attractions of buying a franchise in the first place.

In addition, it is important to the growth of the overall business that both the franchisor and all the franchisees should be working to a common goal. This can only be achieved by excellent communication within the network by getting the message across to not just the franchise team at head office but also franchisees on the front line.

It is important for the franchisor and his team to listen to what the franchisees have to say as this can inject many ideas and changes that can be beneficial to the whole system.

Will I be treated like a partner?

Franchisees also like to see a consistent message and to know that other franchisees are following the system to ensure uniformity across the network. The franchisor must exude passion for the brand, otherwise it will be difficult for franchisees to follow that passion.

Transparency, honesty and loyalty are essential requirements in a good franchise system. Franchisees are referred to as business partners and this partnership must be respected.

The support structure is critical and starts with a supportive mindset. Franchisors often have to act as coaches and cops. They need to have the ability to understand when which aspect is required. Treating the franchisees as individuals will go a long way to getting the right results. The backup network in the business should be established to allow the franchisees to get on with their core business and enjoy their work.

Franchisors should continually share their vision for where the business is heading. Franchisees will follow if they know the direction of the business and will happily follow the leader who makes this clear.

Can I get a royalty reduction?

When the going gets tough, it is a natural tendency for franchisees to look to their franchisor for assistance. They may expect financial assistance, such as a reduction in royalties.

However this is never the major factor in a downturn. The franchisee and the franchisor should be looking for ways in which the business can increase the top line sales and margins within the business, at the same time as controlling expenditure in a sensible way.

It is in the interest of the franchisor to make this happen, so, as a franchisee, actively seek their involvement to assist you in the process.

As a franchisor, the benefits of this assistance will pay dividends in ensuring franchise partners are the best ambassadors for future franchisees and will enjoy a long tenure in the system.