The franchise has proven to be the most successful business expansion model in the world in at least the last 50 years, since it facilitates the exponential growth of a brand, by combining the experience and operating systems of a company with the capital and daily operation. from various entrepreneurs. The businessman who decides to franchise has the vision of growing with multiple units in different territories over time, managing to position his brand in national and international markets; as well as the responsibility towards its partner-franchisee to integrate a multicultural team to support it in replicating the business model in the destination city and/or country. This is achieved through transmission programs of know-how that guarantee that the new member of the family understands and adopts the philosophy of the company and learns the standards and operating methods of the brand in the shortest possible time.
Look for professional training programs. One of the main advantages of joining a franchise system is the existence of structured and professional training programs where they will provide you with knowledge in the basic aspects of the business, its operation, administration, control and marketing. The greater the training time required by the Franchisor, normally the greater the benefit you can obtain from their experience, even at the cost of travel expenses and the time invested leaving your current activities aside. Remember that this knowledge is what you are paying for. We can make a comparison to the university, where you don’t expect that just by paying the tuition you will obtain the knowledge of the professors. It is necessary that you attend and take advantage of the classes so that the tuition you pay pays off. To learn the business you need to be a dedicated learner. But make sure that the training programs are well structured, that they teach both the theoretical and the practical part in a fair balance according to each position and the line of business. It’s okay for you or your manager to spend 30 days learning the business, but it’s not okay to spend 30 days working in a so-called “school” unit without actually being one.
A true training combines theoretical elements, practice time, highlights the most common errors, good practices, performs directed exercises, evaluates and provides feedback, to achieve real learning, both in theory and in practice. He prefers those systems that have dedicated trainers and not those that use their older staff as trainers without having the preparation to transmit knowledge to adults (we have already discussed in previous ANDRAGOGIA collaborations); or even worse, that they use the personnel that supervises their own units to half teach you, remember that a manager and/or a supervisor of own units has a different profile and objective than that of a franchise field consultant. Something that I have learned in this type of process is that the purpose of the initial training is to transmit our business philosophy to both the Franchisee and its staff.
On some occasion directing a training program -where the attendance of the Franchisee to the two weeks of face-to-face training was mandatory- I had a Franchisee who did not finish the training course, in fact it was only a couple of sessions, alleging that it would be the manager who would be in the unit; we let him go; However, three weeks after the opening in a city 1,500 km from Mexico City; when his manager left and he was unable to operate the franchise, the claims came; In the end I understood that it was our responsibility and it was his obligation to comply 100% with the training program. We should never have allowed him to open without being trained and of course we should never have allowed him to leave the training.
What should I expect from a Franchisor company? What should they support me with? In my opinion, a serious company should be clear about the services that the franchisee requires -according to the profile to which the franchise was granted and the infrastructure available- for the unit to operate successfully and in accordance with the standards of the brand. They should help me: Know if I meet the right profile for the franchise, know which location is the best, help me negotiate the lease, make me the best executive project, give me construction unit prices, negotiated and authorized suppliers, help me with the entire pre-opening process, tell me what activities I have to carry out, train me, send people to the opening, put together my marketing plan, take me to the press and personalities, have an online training program, visit me every month, have control software in the cloud for both the unit and me, help me prevent my employees from stealing from me, teach me tax, legal, human resources, sales techniques, INNOVATE in new products, etc.
The most valuable information that the Franchisor can provide you is teaching you how to be a good entrepreneur in your line of business. The teaching of the operation is a “must” within its transmission of knowledge, it is something that you will master in a short time because you will put it into practice every day. But the numerical analysis of the business, the trends, the key performance figures are data that only the Franchisor can generate and that will be of great value to you. Being able to compare your unit’s results against the system’s results allows you to rate your performance against the average and the best. Knowing the main financial problems faced in most units and the solutions that are being implemented allows you to anticipate solutions. Know the business operation indicators, such as food cost, days of clothing storage for a dry cleaner, ice cream yield for an ice cream parlor, rotation by model for a shoe store, productive hours in a car wash; it is invaluable information. Look for systems that can provide you with valuable information.
The more complex the business operation is, the better profile of advisors is needed. The investment that Franchisors make in their field staff tells you about their interest and commitment to their Franchisees. In some cases the advisers are only a policeman who will point out all the errors without helping you to correct them. A field advisor has two fundamental tasks, the first is to be a police officer of the system, he is the person in charge of ensuring that the Franchisees follow the rules except keeping the standardization of the system; on the other hand, he is the person in charge of motivating and leading his Franchisees so that they achieve the results expected from the franchised unit and seek growth. A franchise advisor must know finances, operations, everything legal, franchises, site selection, public relations, among others. A good franchise system is one in which its field advisors have sufficient experience and knowledge (both in franchises and in the business) to contribute to the development and improvement of the unit, avoiding simply monitoring the mistakes made, that does not contribute to the growth of the System.
In the ILAF International Franchise Diploma we have developed two modules in this regard, one that has to do with the way in which the transmission of knowledge is carried out and the second with a training school since we recognize that the way, the time and the The franchisor’s work team are essential for the good start of the unit and its success in the immediate future.
Franchisors do not provide assistance for being cool. Franchisors want the entire system to grow, prosper and therefore make a profit. If the Franchisor company, its owners and its main executives are not committed to the franchise and the project is simply seen as something secondary, when the company’s departments see it as extra work, the system will simply not work.
So I suggest that you review what the franchise includes (what services will they provide you and what is the BRAND owner’s plan to make you and your work team operate the business in the shortest possible time and most importantly who will help you? will provide that training and what experience they have in the business, the initial success of your business will depend to a large extent on them.
I hope this weekly column is useful for you and your business. Remember to visit my YouTube channel “FranchiseZar” where you will find a great collection of business, franchise and entrepreneurship issues. Listen to me on the FB channel of LA FORMULA DE LA FRANQUICIA every Wednesday at 7:00 p.m. cdmx. Interested in acquiring a franchise? Ask FranchiseZar® and #notedejessoprender. Your friend the Czar of Franchises says goodbye to you, see you in the next one.
Jorge Valencia L.
President of the Latin American Franchise Institute.
CEO Interfranquicias Group Latam.