Who Is A Franchisor
An individual who agrees to give the right to open the branch and vendor his products and services by entailing his brand name, know-how, and intellectual powers as well to the other person is known as a franchisor. A genuine or already operating company that vends the rights is known as a franchisee, and a franchise refers to a brand name used to open a branch. An individual planning to buy the rights of a franchisee must be mentally prepared to meet with the potential franchisor to get the agreement reached. An individual needs to consider specific aspects while going to the meeting. A few of the essential things which can play a crucial role in bagging the deal are as follow;
Discovery Day
This day holds immense significance for the franchisee who is being invited by the franchisor for the first time to company headquarters to discuss and reach an agreement. Before going to attend the discovery day, there are few critical proceedings to deliberate on the matter.
The discovery day usually arrives earlier in the process of application, so this is of immense importance that the concerned person should be well educated as the process begins. It’s of tremendous importance to deliberate with the several franchises incorporate system and that the person has reached the organization and thoroughly researched the structure of the franchise system.
Another critical factor is to collect and examine the Franchise Disclosure Documents before arriving at the meeting venue. Many of the franchisors dispatch these documents on getting the preliminary application; however, if the franchisee does not send the disclosure documents, the franchisor can request one unhesitatingly.
Lastly, to bear, all the particular expectations and objectives in mind hold immense significance, especially for the opening meeting. If someone is willing to get the franchisor impressed, then the person must know, that is a two-way relationship. The franchisee should always pursue to have his queries addressed and must be good in his observation about the way the franchisor negotiates. The franchisee must be prepared thoroughly for negotiating any open objects in the agreement process. The franchisee must always pursue to gain feedbacks on the opinions of the franchisor of his proposed business model.
The franchisee needs to be well prepared, educated, and proficient enough about the particulars of his franchisors’ corporation. While meeting the first time with the potential franchisor, it is an opportunity to gain his unbroken attentiveness, and that the franchisee wants to have the most out of this. Here are some ways to organize.
First Impressions
The relationship between a franchisee and a franchisor holds immense significance. So, it is essential to have time to create a lasting impression by being dressed professionally. Think about either it is suitable to take the partner along at the first meeting. The franchisor can ask the franchisee to sign the documents of non-disclosure, which is a standard exercise.
Be Prepared
Before going to the meeting, it is essential to have read the prospectus of the franchise and compare and explore some rival companies. At a franchise exhibition or over a telephonic conversation, the franchise should ideally discuss initially with the franchisor. The franchisee may show an interest in a specific site, however not necessarily. If it is the case, the franchisee should evaluate the vicinity for the market and competition.
Questions
When it comes to attending the meeting with exploratory queries, one can structure questions only based on SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). It is significant to keep in mind that a meeting is a two-way interview, and the franchisors would never see a franchisee as a severe client until the franchisee puts structured questions. The structure of each franchise varies from the other one, so there are no Pro-forma questions, but the given below questions may be helpful, starting with:
- How much amount of revenue I can generate?
- Would I be able to triumph the objectives using your concepts?
- Do the culture and values support?
- Does the franchisor is helpful in franchising?
- What are the monetary inducements or deals?
- What is the mechanism of dispute resolution?
- Does the franchisor help in searching for the appropriate location?
- Is there any package ready to use immediately?
- What is the exit strategy if any?
Get Into the Moment
‘If you are on time, you are late’ is a saying which has more than a grain of truth. The franchisee must be at the venue earlier than the time fixed for the meeting to develop a sense of familiarity with the surroundings and accommodate him in the environment. What is the impression projected by the staff and the office? Does it sense like the organization has the potential to grow and possesses marketing shrewdness? Having brand awareness is everything in the modern-day world. Does the brand values are communicated by the business?
The Franchisor
One cannot claim to have gained expertise in assessing the people. Most people make a comparison between a marriage and a franchise relationship. A person can follow the lead provided by his gut feelings, but an individual having a real understanding of his business is capable of describing it concisely and plainly. If the business model is too much complicated to understand, the franchisee needs to be a bit cautious.
Understanding does not take too long, as does the experience. Trust is the essence of a business relationship. So, the franchisor should be evaluated to the extent of the best of abilities of the franchisee and decide if he can build a long-term relationship. The decision should not only be laid based on the interview alone, but the franchisee must also look out for errors. The franchisee should not hesitate to cross-match the facts he has been told with what he has researched.
The Franchise Package
The nature of the presentation of the franchisor would undoubtedly disquiet this. The franchise package is much to captivate, but the franchisee should try to accomplish the fundamental understanding of the source of revenue generation from his first meeting. Also, he should know where the franchisor will be earning his revenue.
The franchisee needs to prioritize the essential elements out of the information he hears. Understanding the way of making money by the franchisor should also be appreciated. If the source of income for the franchisor is franchising, it indicates that the franchisor is willing to recruit new franchisees instead of backing the existing structure. With the advancement of the presentation, mark the questions being responded to and ask the ones left unattended.
Next Stop
It does not mean that initial meetings imply the closure of the process, but this is a significant milestone. Following steps can be taken after the meeting:
- Speak to the family
- Have a conversation with the current franchisee for sane views
- Collect the information to decide if this is the business for you
- Do not rush to the first franchise.
If someone is still doubtful about how to start, below are some questions which he can ask a franchisor. This list is not the complete list of queries, but they intend to be a starting point of the analysis.
The following are the things that count most while going to meet the franchisor.
Your professionalism
The franchisee should be wearing professional attire while going to attend the meeting with his franchisor; however, it might not be necessary. It all depends on the field and brand of the franchise. Showing excellent management skills will have a good impression on the franchisor. It will also demonstrate your commitment to the project.
It may not be the case that a franchisor invites you for an online interview. This invitation might be a preliminary screening to conclude if the franchisee is the right choice for selection. Technically, the franchisee is not meeting with the franchisor in such a setting, but it still is the first impression. So, attending an online interview might appear unusual and lesser severe but dressing correctly for the meeting is always important. The environment should be peaceful, quiet where there are no interruptions with adequate lights.
Your curiosity
A franchisee must be curious to know about the franchisor and his working style. Like any other interview, the franchisee should ensure that he has a list of questions to be asked to his franchisor. A franchisee should place these questions when the franchisor is done with his list of queries. The franchisee must research most of the information about the franchise regarding the training programs of the network and support structure.
Most of the interviews will put off if the candidate is not equipped with questioning ability after the meeting. The lack of questioning shows the lack of interest in the business and acquiring the rights of the franchising. Asking some questions or put forth ideas, one can continue the discussion for a little more time. Additionally, if the length of an interview is more than the expected duration (i.e. a meeting programmed to last half an hour but it goes on for more than forty minutes), it will be evident that the franchisee has put a significant impact.
SIMILAR POSTS 
