Franchising- B -Lesson 5

Franchise Operations

a. Training program
b. Staffing the franchise
c. Financing the franchise
d. Market your franchise

A good training programs ensures the continuity of business and compliance among franchisees and
their crew.

The brand that is franchisable is capable of transferring knowledge about the system to the right
business partners, regardless of whether he is a first time business owner or a seasoned franchisee. An
exchange of information happens at the start of application but even more so when training start. New
franchisee have go to through successfully complete the training program designed by the franchisor.
The extent of training, in terms of hours spent and topics covered, is usually predetermined, but its
effectiveness depends on the crew and managers ability to learn.

It is then important that the franchisee hires qualified individuals. As stated in most franchisee
agreement the franchisee must hire the required number of management team an crew necessary to
operate the franchised business efficiently. The franchisee must abide by the franchisors hiring
standards such as age limit, physical appearance, and other qualifications, plus the salary rates.

In many companies, the number of staff manning a store is set in proportion to the sales projection of
that particular franchise; the higher the target of the sales volume, the bigger is the staff. Crew must be
hired a few months before the targeted opening date and must undergo the franchisors basic
operations training program within a prescribed period. The specifics of the training are usually stated
in the franchise agreements and operational manuals.

Franchisees, on the other hand, shall go through special and in-depth training on management and
leadership, so better imbibe the vision of the franchisor. They must be fully aware of their obligations
and rights in the partnerships, as well as how they could lead the new franchise store to become a
successful venture.

Pre operations

The crew and management must complete the basic operations program designed by the franchisor.

People involved . Franchisee and management, store staff, franchisors expert training team.

Skills to learn. Manufacturing, selling and storing the product or service or service, customer service,
basic bookkeeping.

Result Expected. Smooth opening and operations of the store in its first months.

On going operations

Franchisees are expected to be hands on and involved in the day to day operations of the business. It is
In their direct involvement that they will recognize gaps to be filled and deficiencies that could be
prevented.

People involved: Franchisee and management team, new hires; franchisors franchise officer and
training team.

Skills to learn: Customer service, supply management, store maintenance, financial management.

Result expected: Stores operates with minimal supervisions and meet performance standards reaches
sales quotas and with modest if not excellent profit margin; satisfied customers.

Trouble shooting

Even the most meticulous franchisee could never avoid problems and pitfalls while managing the
business. When there are no options but to face the problem, a sound and strategic mind, coupled with
support from the franchisor management team, is key to keep the franchise on track.

People involved: Franchisee and management team, franchisors franchise manager or chief operations
officer.

Skills to learn. Decision making strategy planning and trouble shooting.

Result Expected. Quick response to crises and well thought out solutions, preventive measures for
future crisis, improvement in the system.

B. Staffing the Franchise

As the franchisor they need the right people to help you execute plan. Few good men and women
should do it.

No matter how well your business plan is written, how unlimited your capital may be, or how you
prepared your production plan, all that will go down in the drain if you don’t have people to run it. As
with most fledging ventures, in the beginning you be wearing all the hats; from taking orders to
creating your products, talking to suppliers to delivering the finished goods. But you don’t want to grow
and expand, don’t you. And when you do, you need more than just a pair of hands to help you do it. Its
time to hire.

What are you looking for?

When you start, looking for people, there’s obviously a positions that needs to be filled. And that
vacancy isn’t just an empty chair or cubicle. It’s a positions that comes with a specific task and
responsibilities.

Thus, the first step is knowing what positions you need to fill. And what skills are set needed by these
jobs. Are you looking for an accountant? Then hire one. In need of marketing person? He must have
experience in marketing.
 Do you want new graduates or with experience? Knowing what you want will help you screen
applicants and they in turn will know what they would expect.

To find potential employees, one can rely on mixtures of referrals, job adds and even recruitment
agencies.

Referrals

For most new and small businesses, referrals are the most preferred method of finding employees.
These comes from friends, family members or former co workers. Because its more personal approach,
most referrals produce high quality applicants; people are reluctant to refer someone who will
embarrass them.

Job advertisement.

If the positions you’re hopping to fill requires skills and credentials, posting advertisement will be more
effective in attracting more applicants and increasing your chances of finding the right person for the
job. You can post your advertisements in newspapers online job sites. Thee are some websites that
requires a fee for everyone but premium viewers, while some classified sites are free. Be very specific
about the job requirements.

Recruitment agencies.

If you are looking for maintenance staff or sales personnel, dealing with manpower or recruitment
agency may be easier than finding them your own or through classifieds. Chances are those agencies
already have a list of applicants who have already gone through an initial screening and with complete
papers.

The interview

So you posted your ad and received some inquiries. Its time now screen your applicants. Resumes and
cover letters enable the applicant to put to put his best foot forward, showing only his good side.
However, the job interview will give you a complete view of the persons, and see whether you could
work with him. It is also and see the chance for you to see whether this person could align himself with
the vision of the company.

C. market you franchise

Now that you have finally open your shop, its time to let people know you exist. A god marketing plan
will do that.

Upon signing the dotted line and paid your franchise fee along with the other fees, you also paid
advertising fee that the franchise company will use in its marketing effort. This part of the franchise
package.

While it will vary from contract to contract, in general the franchisor must provide its franchisees with
different collaterals and marketing paraphernalia, as well as have efforts of its own to prmote the brand
and company. This maybe in the form of banners and posters standees or flyers and even print, radio
and television ads.

Marketing expense.

Some companies require a certain percentage of your gross monthly sales as an advertising fee, which
they will then funnel into concrete marketing efforts. However, just because the mother company, is
busy promoting the brand doesn’t mean you should not.

As a franchisee, you also have the responsibility to promote your franchise, albeit in accordance with
the rules of the company. Compared to newspaper ads or billboards, your effort may be small, targeted
only in the community your outlet is located. But it will still help bring attention and hopefully, sales to
your branch.

Look at your location

Concentrate your marketing efforts in and around community where your franchise is located.
Obviously, this where the bulk of your customer will come from, so they are the people you need to
target. Locate areas where people converge or meet: a busy sidewalk, a waiting shed, a monthly activity
or an event.

Engage your customers.

Once you have located potential customers are, its time to attract them. You can start small with flyers,
or do more and negotiate promos or deals with other local business or events happening around your
area.

Always bear in mind, however that efforts that require discounts or tie ins with other brands require
approval from the mother company. Some may have stricter or more lenient rules, depending on the
contract you signed. This is done to maintain the quality of the brand, ensure the correct use of the logo
and keep the company name in good light.

Treat them right

It is considered a cliché because its true; the best endorser for any products is satisfied customers. And
in a close community where people constantly recommend things to other people, this something a
franchise must always remember and take advantage of.

Word of mouth advertising is more credible than the actual advertisement as it is shared among
friends, relatives and people who trust each other. And second, its free. All it takes is efficient service, a
smile from the staff, knowing your customers names and orders. Or even going out your way to make
sure they get a good experience from trying your product or service.