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In order to protect both the franchisor and the franchisee, there are rules and regulations that need to be proposed. The franchisee has rights and obligations, and must always perform in a high business manner to keep the individual store franchise alive. The franchisor also has responsibilities that must be fulfilled in order to make sure everyone is happy in the business transactions.

  • Your commodity, brand product and or service must be registered and success must be proven. Make sure you have done your due diligence in marketing before offering your franchise up for investing.
  • You need to have an infrastructure that provides the good or services to your franchise. In other words if your franchise is an eating establishment, you must have the mean to deliver foods to the restaurant. If it is a computer-driven franchise, have a website that supports your franchisees.
  • Before offering a physical store up for franchising, you do need to have a test store. It is recommended by experts that three tests stores be the optimal number.
  • You must have an operating manual that lists out the rules and regulations as well as the obligations of both parties.
  • Make sure your franchise is not just a passing fad.
  • Monitor your franchises by using internal communications, doing research, and ensuring there is enough support and marketing from the home office.
  • Provide a written assessment of legal obligations to your franchisees. They are your business partners and should be kept in the loop.
  • Make sure all legal obligations are paid and fees are set.
  • You also have the responsibility of training the new managers and staff. Provide guidance on any questions and on the proper way of managing the franchise. This should include training manuals, seminars, training programs, and ongoing assistance. If you are a restaurant establishment, your food handling practices should be uniform.
  • It is the franchisor’s responsibility to lay the foundation for a successful franchise. You need to be aware of and help with launching the business, delivery and installation of all products and aid with the installation of furniture and equipment.

There are many successful franchises that make money for both the franchisee and the franchisor. However, to be successful one of the highest responsibilities of the franchisor is to keep the lines of communication open. Do not forget your satellite stores; they are the ones who make you money. Keep your legal obligations up to date and make sure all obligations including taxes, product delivery dates, seminars and training are up to date and current.

Learn more about franchisor roles and responsibilities by reviewing articles in popular online directories. And check out the latest library books and Amazon books that are about franchising today, to get the most up to date information as it becomes available.

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