Do You Want to Grow Your Company Bigger? Then Use Franchising

9. Am I a paranoid franchiser?

If you franchisee have customer service issue, be there physically and understand what is going on. Every problem with a customer tarnishes your reputation as well. Image credits: Shuttershock

Remember, franchisee is not your friend (although they might become one someday). Apart from your common goals, they have their own company and ambitions. That is why there can never be too much control in a franchised company. However, it should be done delicately. You can monitor sales promptly using the software that all franchisees are required to use. If the franchisee’s results are persistently poor, it is worth looking for the reason in either sales – the actual volume might be hidden from the franchiser –, or perhaps the business is not run properly. The two main things that should be monitored about a franchisee are:

General economic performance
Customer service

If the turnover is small for some reason, don’t just stand by: Get down to it and determine the cause of the problem! If it is a customer service issue, be there physically and understand what is going on. Every problem with a customer tarnishes your reputation as well.

IN CONCLUSION

Just as you shouldn’t believe the consultants who say that the success rate of franchised businesses is 95%, you shouldn’t believe those who say that franchised business is easy for the franchisee. However, the more franchisee has thought it through, the better the odds of it becoming something big and beautiful.

Something like McDonald’s.