B2B Markeplace

When you first step into the realms of a Franchise Opportunity one of the first things to come to your attention will probably be the bulk of the “rule book”, or the file that sets out the foundation under which you may operate within your contract. There will also be a significant amount of detail around the consequences of not abiding by these rules, some of which will be harsh.

It is also distressing for a new franchisee to recognise that the good ideas that he puts forward on how to improve the operating of the business are nine times out of ten not taken up the franchisor, and more than that are disallowed going forward. This is all very much key to Franchise tradition. A culture that causes a considerable amount of stress and frustration for individuals having just recently purchased a Franchise For Sale and less so for those who are experienced at the franchise model.

Those with more familiarity of the ways in which a franchise model works can understand the need for conformity across the board. This generally means that the same rules apply to all franchises across the country but equally it could apply overseas too.

The model must be easy to replicate all over the territory in which it operates and therefore should be configured to allow regional differences in the process. The model must also take into account that the franchisees running each franchise will have different capabilities and so it must be clear and informative enough for all to deal with. This can sometimes mean that an individual with extra skills in a particular area is restricted in his actions as the rest of the franchisees would simply not be able to function at that level.

A lot of the consistency boils down to the ease in which the Franchise operator can check and control the whole team. If every franchisee for example was providing sales figures in a different arrangement it would be very time consuming to assess the overall picture and so all franchisees need to use the same reporting documentation. If one franchisee decided that he was going to put a deal together for a particular package of products in a given month the sales of the franchisee in the neighbouring patch may be affected. This could spiral to a complaint to the franchisor. A few of these types of situations needing attention and the franchisor is spending all his time smoothing out disputes rather than continuing to grow his business.

So the rule book, although huge, is there for a very good reason, the continued growth of the whole organisation. If you are considering a Franchise Opportunity do not necessarily be put off by a large and comprehensive list of do’s and don’ts. Often it is a sign that the franchisor has great designs for the organisation and has the determination and drive to get it there. This of course is precisely what a potential franchisee wants to hear as the brand and business growth will have a massive affect on the profits for each franchisee.