What Help Does a Franchisor Provide to Franchisees?

A franchisor will typically offer the following assistance to a franchisee:

• Financial assistance. Not all franchisors offer financial assistance but some do have financing programs available to franchisees.
• Location selection. Some franchisors will help franchisees select a location for their franchise or may select the location, not allowing the franchisee to choose at all. The benefit of the franchisor selecting the location is that they have experience choosing locations that are successful.
• Training/operations manual. In order to run your business the franchisor provides a detailed operations manual that includes instructions for carrying out their operating system. It establishes the rules, standards and specifications of the franchise and forces the franchisor to organize and define specific job responsibilities and tasks. The manual contains information about the roles of employees in the business; the main processes and protocol; performance and management standards. Before you can open your franchise you may need intensive training about the operating system and business as a whole. Training can take place at the corporate headquarters, so you may need to factor in travel expenses, at your franchise outlet or a combination. Most franchisors offer periodic training and seminars.
• Advertising. Most franchisors initiate advertising efforts, either on a national or local level or both. These initiatives can be in the form of TV and radio commercials, direct mail campaigns and public and media relations efforts. Some franchisors require franchisees to pay into a fund to cover these costs or will offer a co-op arrangement where the costs are split.
• Support. Most franchisors offer ongoing support such administrative (e.g., human resources and accounting) and/or technical support. Many large franchisors have hotlines that franchisees can call for support. Franchisors can advise on employee issues, insurance requirements and other matters relating to the operation of your franchise.

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Read "Making a Fabulous Franchisee" and also "Helpful Franchise Associations: The AFA, AAFD, and IFA."