Thinking of becoming a franchisee? Don’t fall for common myths! Learn what your franchisor should REALLY be doing to support your success. Read our comprehensive guide now!

Table of Contents

1. The Common Franchisee Assumption

2. Not All Franchisors Are Equal

3. Responsibilities of a Good Franchisor

4. What Makes a Franchisor Truly Supportive?

5. Conclusion: Choosing the Right Franchise Partner

1. The Common Franchisee Assumption

It is a common belief among prospective franchise owners that when you become a franchisee, you will receive comprehensive support, training, and business knowledge from your franchisor. Many assume franchisors are experts in small business management and that, in exchange for franchise fees and royalties, they will provide all the tools and guidance necessary for franchise success.

While many franchise opportunities come with excellent franchisor support, this is not always the case. Understanding the realities of franchise ownership can help you make an informed decision.

2. The Reality: Not All Franchisors Are Equal 

There are over 7,000 franchised chains globally, and not all franchisors view themselves as business educators or franchise mentors. Some franchisors rely heavily on their brand recognition, menu, or products to justify their franchise fees and ongoing royalties, without providing substantial ongoing support.

These fees often take a significant portion of your franchise profits, sometimes even when franchisees have yet to draw a meaningful salary. This raises the critical question:

To what extent is a franchisor entitled to the franchise fee and royalty payments?

Understanding the franchisor’s responsibilities is key to evaluating your franchise investment.

3. Responsibilities of a Good Franchisor 

Your franchisor should deliver value in return for your franchise investment by fulfilling these essential responsibilities:

1. Comprehensive Franchise Training and Ongoing Support
   
   
2. Operational Assistance and Business Coaching
   
   
3. Effective Marketing and Brand Development
   
   
4. Regular Performance Tracking and Business Improvement
   
   
5. Technology and Systems Support
   
   
6. Clear Communication and Conflict Resolution
   
   
7. Financial Guidance and Business Strategy Support
   
   

4. What Makes a Franchisor Truly Supportive? 

1. Comprehensive Franchise Training and Ongoing Support

• Initial franchisee onboarding training and staff development
• Access to ongoing education, webinars, and updated manuals
• Support in adapting to market trends and industry best practices
  

2. Operational Assistance and Business Coaching

• Dedicated franchise support teams for daily operations
• Guidance on staff management, customer service, and inventory control
  
• Regular site visits and audits to maintain brand standards
  

3. Effective Marketing and Brand Development

• National and regional marketing campaigns funded by the advertising fee
  
• Assistance with local marketing strategies, including digital and social media
• Provision of promotional materials and brand assets
  

4. Regular Performance Tracking and Business Improvement

• Tools to track key performance indicators (KPIs)such as sales, customer satisfaction, and employee productivity
• Scheduled performance reviews and coachingto address business challenges
• Customized advice for profit maximization and cost control
  

5. Technology and Systems Support

• Access to POS systems, inventory management, and reporting software
• Online portals for ordering and logistics management
• Regular updates to keep your franchise competitive with modern technology
  

6. Clear Communication and Conflict Resolution

• Transparent communication channels for updates and concerns
• Fair and efficient resolution of franchise disputes
  
• Mechanisms for franchisee feedback and involvement in decision-making

7. Financial Guidance and Business Strategy Support

• Help with budgeting, forecasting, and managing cash flow
  
• Assistance navigating legal compliance and tax planning
  
• Tools to calculate return on investment (ROI), break-even points, and profitability
  

5. Conclusion: Choosing the Right Franchise Partner 

I sincerely hope that if you are already a franchisee, your franchisor is actively supporting you in achieving your business goals. If you are currently exploring franchise opportunities, the checklist above will help you make an informed and confident decision.

Remember, franchising is not just about the brand, logo, colors, or products—it’s equally about the franchisor:
Who they are, their true intentions, and whether they are the right fit to support your success.

Choosing the right franchisor is crucial for your long-term growth and satisfaction as a franchise owner.

Ready to learn more about successful franchising? Visit franed.com for expert tips and resources!