Create an effective Franchise Support System

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Concept of Franchise in India is now growing at a fast pace. Considering the fact that there are more than 5000 Brands offering their franchise opportunities, we thought of defining critical requirements for creating a successful franchise company and ensuring a robust Franchise Support system in place. We have seen franchisors adding franchisees with no or little organized training and support mechanism. This mechanism is important for both parties to maintain high level of consistency in delivering excellent customer experience across all locations.
Let us understand the types of support needed by the Franchisee in order to make a successful business. This can be broadly divided into 2 stages viz Pre-Opening and Post Opening support.

1. Pre-Opening Support:

This starts from the moment Franchisor signs an LOI/ Agreement and receives fee from the franchisee. Essentially Franchisor and his team must ensure the following activities in pre-opening support (not in order):

  • Assistance in locating suitable site for the franchise business
  • Feasibility Study & Market analysis for the proposed site
  • Providing standard Design for franchisee as per set standards viz architecture, Sign-boards, interior and exteriors, furniture/ fixture, etc
  • List of all necessary equipments, tools, inventory, raw material etc along with their respective vendor list
  • Assistance in negotiations wherever needed viz. Leasing, procurement, vendor management etc
  • Assistance in recruitment of staff for franchisee
  • Training of Franchisee and its staff on all aspect of running a profitable business including Operations, Marketing, Accounting, Customer handling, grievance redressal etc
  • List of all legal licenses required for setting up and management of business along with their application procedure
  • Assistance in launching the franchise business

2. Post-Opening Support:

It includes day to day monitoring and support to overcome challenges facing new business. Franchisee needs stronger support in the initial 6-12 months, sometimes complete handholding and if it manages to sustain this period, the chances of success of business grows high. Hence the initial stage support is very important. This includes:

  • A designated franchise support manager to assist franchisee in managing day to day operations
  • Assistance and monitoring of compliance with Company’s Operations Manual
  • Regular assistance in stock audit, inventory management, supply chain management, vendor management etc
  • Provision for all branding, marketing, merchandising, feedback forms, stationary, uniform etc
  • Corporate level marketing and branding support
  • Ongoing assistance in acquiring and retaining customers
  • Advance software and MIS support
  • Encouragement and Moral support from Top level Management to the Franchisee
  • Regular innovations, introduction of new offerings, sales promotion schemes, loyalty program, and other customer engagement programs

Invite your inputs and suggestions to help Franchisors in creating a strong support system.

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