In the franchise business, the franchisor is the key holder of standards; the responsibility primarily falls on him to ensure that best practices are maintained. Some franchisors ignorantly operate the business mainly for the monetary gains. Smart franchisors rather invest in building the brand, by ensuring that the standards are sustained and that the franchisees succeed in all locations, thereby improving the chances of brand growth and deliver lasting rewards to the investors.

Key roles of franchisors

• Offer comprehensive and regular franchisee training on processes, systems and strategies to all the staff of the brand, within both franchisor/franchisee outlets.
• Offer incentives, bonuses and rewards to keep the franchisee motivated within the relationship. Such incentives could include access to finance, a guaranteed margin, a free set up, etc.
• Provide necessary guidance, mentorship and handholding to the franchisee especially during the first 6-12 months.
• Provide regular inspection visits and mystery shopping to all outlets, to maintain standards.
• Promote Franchisee’s business through participation at relevant industry events such as franchise shows, exhibitions, seminars and workshops.
• Assists to recommend and register franchisee with support organizations such as Nigeria International Franchise Association (NIFA), World Franchise Associates (WFA), and International Franchise Association (IFA).
• The franchise fee could be paid by the franchisee over a period of time, for easy settlement.
• It is best for the franchisor to create global contract business opportunities that will create a level playing ground for the franchisees and to refrain from favouring company-owned outlets or competing with the franchisee-owned outlet.
• The franchisor must have policies and structure that will protect franchisee cost vs. profit margin, to ensure a level of guarantee of profitability to the franchisee’s investment.
• Embark on global brand promotion on diverse media platforms, which could be funded through fair cost allocation to all outlets.

Source: FBDS conducted and DFID sponsored franchise study; 2016. Tackling access to finance –http://www.pdfnigeria.org/wp-content/uploads/2017/02/Franchising-Nigeria-Final-Version.pdf

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