Image by Free-Photos in Pixabay

What staff does the franchisor need to seamlessly operate his/her franchise network?

By SirGerardThe1st | Franchise matters | 26 Aug 2020


When the expansion begins and till we have one or two franchises, we can still operate the newborn operation with some people that we already have within the company.

But when we begin to grow, excellence can not be achieved without incorporating new personnel, given that existing people may have to attend to other tasks within the company.

We should not forget that the franchise network is basically one of the channels the company has to sell its products and services, but should not be the only, and nor the only business performed by the company.

This is basic strategy. Frequently, franchisors are small business who have a great success with its concept, and then, is ok to think of franchising as a tool to expand it and build a strong brand.

But they should not forget that being a company is something much bigger than merely succeed with a single business.

How many people should the franchisor have as a staff structure to manage the franchise network? This depends largely on the nature of the business and the distance between franchises and headquarters, that is, the size of the expansion territory.

Generally speaking, the following positions should be covered, with the corresponding job description. Each franchisor must dimension the staff according to the company's needs and according to the feedback the company is receiving from the franchisees, related to customer satisfaction and profitability.

 

FRANCHISE MANAGER

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             Image by Kalhh in Pixabay

Responsible for the franchise system overall operation.

Compiles the information generated by the network, process it and return it with the appropriate interpretation, so that everyone can profit from it.

Plans every six months sales objectives, communication campaigns, new products launching, training, new franchise openings.

Contacts external consultants to update labor, accounting, tax. legal, competitive and strategic issues.

Monitors compliance and discipline of franchises.

Benchmarks the franchise's performance and establish standards of excellence.

He/She is also primarily responsible for seeking new franchisees and sell the franchise.

 

 

MARKETING

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                    Image by Gerd Altmann in Pixabay

Responsible for giving the franchisees the correct information about the own product and that of the competitors, the own prices and that of the competitors, and the own communication and that of the competitors.

Creates, designs, budgets and implements advertising, promotion, events, in-store-marketing, public relations, press, social media, sales force and direct marketing periodic campaigns in each territory.

An influencer is very important in this position

Keeps media relations with advertisers and partners with companies that add value to the brand, as banks, credit cards and the like.

Responsible for CRM and for the interpretation of customers buying behavior using the corresponding metrics.

 

 

TRAINING

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                          Image by PanJoyCZ in Pixabay

Responsible for developing the "company's knowledge library", working with each sector and designing the corresponding course, and for annual planning of training courses to franchisees and their staff.

Develops new courses according to new scenarios or new trends.

Implements the agenda of courses and assess the participants.

Trains new franchisees and new employees at the request of franchisees.

Develops, maintains and controls the intranet that allows franchisees to be in permanent contact with the knowledge of the franchisor and with the whole collection of training presentations.

 

 

 

FIELD REPRESENTATIVE

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                       Image by Gerd Altmann in Pixabay

Visits franchises according to a periodic plan with the objective of taking the pulse of the franchise activity and day-by-day issues in the place where they occur.

In large cities where the franchises are not separated by great distances, one field representative can visit about 10 franchises per month.

In remote cities, we must consider one field representative every 5 franchises.

The function of this position is to take and dump data to a pre-formatted database, for those data can be later analyzed and thus produce cross-information with other sectors of the franchise system.

Field representatives also acts as franchisor’s internal auditors, controlling financial or operational routines.

 

 

 

PURCHASING AND SUPPLY

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                   Image by Gerd Altmann in Pixabay

Responsible for supplying products, services and raw materials to franchises, as well as disposables and everything a franchise need, following the purchasing procedures.

Works based on budgets and actual revenues and consumption, analyzing costs and formulas, selecting suppliers, storing products and controlling stowage conditions, delivering times, freight and transportation procedures.

The principal objective of this position is to develop a franchise network comprehensive logistic program.

 

 

HUMAN RESOURCES

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                      Image by Anastasia Gepp in Pixabay

When the franchise network grows, the number of people employed grows to the point of needing a centralized human resources department.

Even when the employees belong to the franchisees, it is a good idea that the franchisor provide this service to them.

Franchisee's employees thereby develop a greater sense of belonging and a greater motivation is achieved throughout the franchise network.

Also the franchisor has a much more accurate picture of what is happening in each franchise with the personnel. The responsibilities of this position can range from payroll to audit the payment of social security contributions by each franchise, advising the staff on issues like wages, vacation, pregnancy, accidents, legislation, union issues, employees files, medical documentation and related topics.

 

 

Conclusion

The art of growing and expanding needs a franchise network structural design. To engage in a battle involves infrastructure support, so that soldiers do not go to war without tools and without proper logistics.

That's why the franchisor should support growth in a solid management structure, enabling him/her to maintain the achieved competitive position, increase his/her market share and, basically, build a strong brand and a memorable experience for each customer.

 

Thank you for reading!

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SirGerardThe1st
SirGerardThe1st

Franchise veteran, Dapps developer, DeFi evangelizer, Bitcoin and Ether since a long time


Franchise matters
Franchise matters

Reflections of a franchise industry's "Old Wolf", after 30 years in the international franchise business. All opinions are mine, and cover aspects that serve both franchisors and franchisees. Love for brands and entrepreneurs around the world.

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