One of the reasons that new Canadians decide to buy a franchise is because of the type of franchisor support that they can expect to help achieve success. So, this is often a key point when deciding between becoming a franchisee or starting a new independent business. Many people will conclude that their chances of success will increase with the systems and support that a franchisor provides.
If you think that franchising makes sense, you may have decided it makes sense to pay for the right to use the franchisor’s brand, standards, and knowledge. In addition, a strong franchisor can often provide expertise in specific business functions, such as marketing or finance, that you may not have. However, it’s important to recognize that:
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1. The level of franchisor support can vary.
2. Franchisor support will be clearly defined in the Franchise Disclosure Document and Franchise Agreement.
3. You need to do your own research to understand what support you’ll receive.
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Types of Franchisor Support that You can Expect
Now, let’s explore four common types of franchisor support:
1. Initial Training:
You can expect to perform well when you select a franchisor to help you master the basics. And, training that is provided in your initial stages will help you achieve franchise success.
Your initial training will provide you with a broad overview of operations, marketing, sales, service, and general management. And, this may include:
- Operations training to develop skills and knowledge to run your franchise
- Financial and business systems training
- Employee selection and retention training (if applicable)
- Operations manuals and standard operating procedures
Your training begins after you sign your Franchise Agreement, and continues for as long as you own the franchise. And, your franchisor wants you to succeed! So, that means providing you with tools, resources, and knowledge right from the start.
2. Marketing and Advertising Support:
All franchisees are required to pay an Advertising Fee (usually 1 – 4% of gross sales). So, paying an advertising fee means that you do not have to create an advertising plan or marketing materials all on your own. In return for this fee, you can expect to receive:
- A marketing plan that extends past the grand opening of your franchise
- Tools to support brand building and promotional campaigns
- Guidance in local and regional marketing activities
- Professional marketing materials such as posters, brochures, banners, and other items.
3. Site Selection:
Not all franchisors will assist with site selection and site location is critical to your business success. But, if your franchisor doesn’t provide site selection support, you can usually get guidance related to:
- preferred business square footage
- parking requirements
- and, other information.
So, be sure to read what site selection support you can expect in the Franchise Agreement. And, discuss how you can work with the franchisor to select a great site.
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4. Ongoing Franchisor Support:
After you have completed your initial training, the ongoing support that you receive is essential. This support is generally provided by the franchisor to:
- Help you to improve the performance of your franchise
- Ensure you’re operating your business to brand standards
- Help you to grow your business
Other ongoing support can be related to supply chain; management training; and new products and services. This support can be a huge benefit. Your franchise team is likely working with other franchisees who have dealt with similar issues that you will face so, this knowledge may help you to reduce, if not avoid mistakes.
So, franchisor support can be a large benefit and critical to your success. You may even make your franchise selection decision based on the support you’ll receive to start your business on the right foot. The ultimate goal is your franchise success and ability to benefit from the franchisor’s proven systems and support.
Visit our Franchising for New Canadians Learner Center to view tools, resources, and information to help you make an informed franchising decision.
Corinna Frattini is the content marketing strategist at Prepare for Canada. She contributes articles to help newcomers achieve their goals in key areas related to living, working, and settling in Canada. With an extensive background in human resources and leadership development, her articles focus on what Canadian employers seek and how newcomers can continue their careers in Canada.
