Franchising is very a challenging, but very lucrative career choice. Becoming a franchise owner, or franchisee, provides ever-changing learning experiences along with the opportunity to further develop skills while operating as a part of a larger brand.
The job of a franchise owner is both a challenging and rewarding position, and it can often be quite lucrative as well. But what exactly does the day-to-day life of a franchisee consist of?
1. Incorporating Franchise Standards
Perhaps the primary task of a franchisee is to properly implement the franchisor’s expectations.
When partnering with a master brand, individual storefronts are subject to pre-determined rules and guidelines set by the franchisor. These guidelines, which are implemented from the master brand, are meant to strengthen the brand’s cohesiveness and reputation.
For example, marketing slogans, store designs, and associated color schemes must be cohesive throughout all storefronts. This allows for high levels of consistent brand recognition. The main responsibility of a franchisee is to maintain these policies to the highest degree, at all times.
This means franchisees must consistently update their storefront procedures and stay aware of the franchisor’s ever-changing expectations.
2. Calculating Royalties and Other Franchise Fees
The price of partnering with a very recognizable brand is paid through royalty fees.
Royalty fees are created to be reinvested into the company through product developments, expansions, and other branding fees. For most franchises, royalty fees are paid either by a percentage in revenue or a flat fee.
These charges are negotiated before the franchising agreement is finalized. So if you are interested in partnering with a master franchise, make sure to pre-negotiate your franchising fees beforehand.
Most master franchises run marketing and advertising campaigns to impact their overall brand image. These campaigns are run on a larger scale, and are implemented nationally across franchises. Master brands implement large marketing incentives to curate high levels of brand recognition.
On a smaller scale, individual storefronts must create their own marketing incentives to direct consumers to specific stores. Therefore, it falls onto the franchise owner to market and engage to their own target customers. Luckily, a master franchisor’s previously existing reputation can positively influence foot-traffic to individual storefronts.
4. Employee Training and Management
Just as you would likely do if you ran an independent business, you will have to train your employees – or put a system in place for them to be trained – and manage their schedules, performance, and all the other elements that come with having employees.
As with every aspect of being a franchise owner, the franchise will provide guidelines or a framework for how employees are to be trained and how they are to function, but, beyond that, it is the responsibility of the franchise owner.
5. Inventory Management
This is another task you would have to carry out even if you managed an independent business. Your store will need all kinds of inventory and supplies, and ensuring that there are enough of these at all times is the franchise owner’s responsibility (of course, you can train others to carry out such tasks, but it will ultimately fall on you to make sure everything is functioning properly). The difference here though is that often times you will get the inventory and supplies that you need by purchasing them from the franchise itself. If that is not the case, they may have designated suppliers – or certain other purchasing guidelines – for you to follow.
6. The Grunt Work
Though managers are known primarily to delegate, there comes a time where every manager must roll up the sleeves and do the dirty work.
This may include: cleaning and scrubbing, troubleshooting faulty equipment, dealing with unhappy customers, working the register, or holding down a spot in the assembly line.
With a team of properly trained employees, it is unlikely that you will have to do such work every day, but when people call in sick, quit unexpectedly, or when business is simply too good, you may find yourself in need of extra hands – and whose are better than your own?
All in all, it’s a lot of work. But being a franchise owner can be a very rewarding experience as well.