It’s easy for any franchisee to look at their franchisor in question and believe they have it easy. After all, they’ve built the brand, they know the game, and expansion and profitability continues to become easier. All of these things work in the franchisee’s favor, mind you, but sometimes it’s easy to experience a disconnect with head office and what they have had to endure throughout the years.
While franchisees have their own challenges to deal with on a day-by-day basis, it’s nice to walk a mile in the franchisor’s shoes so they can better understand what goes into maintaining a reputable and successful brand. Here’s a few things franchisees rarely think of, let alone appreciate.
THAT FIRST YEAR
While every successful franchise started with one location that served as the primary model for efficiency and branding, things inevitably got difficult when they decided to branch out and expand into multiple locations. The first year of full-on franchising is heavy with difficulty, especially when it comes to obtaining startup capital.
Without that capital, it’s bye-bye to brand awareness, advertising and marketing, supply chain management and employee salaries. This tricky balancing act will hopefully give way to stability, and in turn a model of efficiency that woos potential franchisees to sign on the dotted line. Making it past those first 365 days is crucial.
R&D, 24/7
Franchisors need to know what works and what doesn’t…fast! This means identifying any and all efficiencies in day-to-day operations, and trimming any slice of fat in order to craft a smooth-running machine. Without this level of efficiency, costs eat too far into profit, and this has a detrimental effect on would-be franchisees who want to set up shop and start serving patrons.
Unfortunately, this is not a set-in-stone process. While many restaurant franchisors may take cues from the greats, it’s impossible to account for particular demographics such as country, weather, average age group and income level. And finally, timing is the ever-persistent demon that needs to be flanked and struck by any franchisor looking to make it big. Waiting too long, or striking too soon can both spell disaster. Finding the right mixture of elements that attracts the widest possible customer base is painstaking work. Think about that as you marvel at the success of your own franchise location.
ADAPTING TO THE TIMES
Franchisees have it relatively easy. Head office does the hard work in determining when and how to make adjustments on everything from the menu, to the training guidelines, and even the company’s logo. Each of these are highly risky endeavors based primarily on market research, eagle-eyed attention to detail, and the ability to adapt quickly to competitor moves.
While franchisors are busy keeping a fixed perspective on things, the franchisee need only abide by the guidelines already in place, and adapt to changes as they come. This is part of the reason why franchisor fees are actually such a tremendous benefit to a franchisee. Being saddled with such responsibility on top of day-to-day operations can be extremely difficult to manage.
OVERSEEING CONSISTENCY
Back in the wild west days of franchising, the ability to oversee and maintain consistency across multiple locations was practically impossible. Steps were soon taken by various franchisors to incorporate real estate leasing into the franchisee’s contract which acted as a safeguard against deviations from established guidelines. Though it might have seemed cold, this was actually a very smart move that helped rein in those who sought to change the look and feel of the franchise location, or the items on the menu. Consistency, as always, is key to the success of any franchise.
Consistency also starts with the franchisee in question. Every new franchisee is a potential risk to the reputation of the overall brand, and one newsworthy misstep could yield a massive blow to consumer trust, and the bottom line. Franchisors do their due diligence, but no system is one-hundred percent perfect. The stress of managing so many franchisees and making sure they adhere to guidelines without going rogue is enormous.
We hope this shines a bit of light into just a few of the things your franchisor must contend with. Any franchise deal is a relationship built on trust, as well as verification, and both sides want a mutually beneficial partnership. Just remember what the franchisor has to go through on a daily basis, and it may cause you to look at your own franchise location in an entirely new (and appreciated) light!
For more information on franchising with St. Louis Wings, please get in touch with us today! We’d love to tell you our story, and have you join our franchise team!
