One of the biggest pros of buying a franchised business is that you are already getting a formula that works, whether it’s a food company or urgent care opportunities. Compared to starting your own business from scratch, a franchised business already has systems, strategies, and best practices in places that have been proven effective through time and experience. However, this doesn’t mean that you can sit back and relax while the business does all the work for you.
A franchisee has a lot of responsibilities to maintain the optimum performance of their business. To ensure that you are meeting all of these responsibilities effectively, here are some of the best practices that you should start applying today:
Do due diligence
The franchisor is already doing market research, scoping out the competition, and analyzing results on your behalf. But it won’t hurt to do some of these things yourself so that you can better understand the market and, more importantly, your business. Doing due diligence will not only make you a better business owner, but it can also help you identify areas for improvement and potential pitfalls that the franchisor has failed to spot.
Follow the system
Before you even took out the franchise, you should have had full confidence in the franchisor’s system. That said, this is not the endeavor where you want to go against the grain. If the existing systems work, follow them. Moreover, review your franchisee contract to see what you can and cannot change about the system in place.
Treat your people right
Whether the employees come from the head office’s HR or you do your own hiring, you must treat every employee with fairness, care, and consideration. Keep in mind that employees keep the business running, and if they are disgruntled or dissatisfied with their job, your franchise is likely to suffer.
Take proactive measures to create a working environment that promotes healthy relationships, open communication, and a positive work-life balance. You can apply many strategies for this purpose, such as avoiding micromanaging, performing proper scheduling, hiring enough staff for the existing workload, and encouraging proper communication between everyone.
Don’t be afraid to ask questions
At times, you may be hesitant to ask the franchisor about something that has already been explained to you—or something that other people expect that you already know. However, this kind of mindset can hold you back from maximizing your business’s potential. Worse, it can lead to you making otherwise avoidable mistakes.
That said, don’t be afraid to ask questions, no matter how unintelligent they may seem to you. If you can’t find the answer on your own, contact the franchisor to settle the matter quickly—they will likely be more than willing to help clear up your confusion.
Study the franchise operations manual
When you become a franchisee, the franchisor will provide training, seminars, learning materials, and other resources that can help you learn the ins and outs of business operations. However, the training period may not be enough to fill you in on everything you need to know. Hence, you will have to do a bit of self-studying to expand your knowledge about the business, particularly with its operations and guidelines.
Furthermore, consult the franchise operations manual before making a major decision in the business and when you come across a situation that you are unsure of. For example, if a small flood disrupts your normal business operations and you have to cook items in alternative ways, review the franchise operations manual first to determine the best course of action. If the manual does not hold the answers, you can always contact the franchisor directly.
This relates to the first item on this list—when you do due diligence and identify areas for improvement or problems waiting to happen, don’t hesitate to tell the franchisor about it. Most companies are more than willing to accept feedback from their franchisees, especially if it can help improve operations. Come up with suggestions on how to solve the particular problems you have identified or how to work on business opportunities that you have spotted. Not only can you improve your franchise, but you can also help other franchisees move forward.
Becoming a hands-on franchisee can help your business excel further than you have ever expected. It can take a lot of effort on your part, but every push forward will be worth it—even if you did not start the business from scratch.