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January 17, 2023

Olga Azarova: "The beauty of franchising is the mutually beneficial arrangement"

Franchising Is a Two-Way Street

The beauty of franchising is the mutually beneficial arrangement between franchisor and franchisee, and once they team up, the relationship becomes a two-way street. The franchisee pays an initial fee and agrees to ongoing royalty payments in exchange for the right to use the name, likeness, trademark, and operating systems of the franchisor’s brand. In turn, the franchisor agrees to uphold, support, train, and nurture the franchisees in their system, creating one big happy family. 

Franchisor and franchisee are dependent upon one another for success.

Franchisee Support Is Deeper Than You Think

The franchise brand has a vested interest in seeing its franchisees not only survive but thrive. The primary way it ensures this can be demonstrated in the level of systems and support it provides, because franchisors wouldn’t be successful without investing in the success of their franchisee family. The depth of their support is provided in the systems, tools, and 4 Essential Things to Know About Franchising

All franchisors provide operations manuals, initial training, and degrees of ongoing support. But only few of them also extend their support in the form of site selection assistance, discounted vendor relationships, marketing, co-op advertising, social media, field support, onsite inspection visits, and 24/7 call center assistance.

Some franchisors even assign a dedicated franchise business representative to oversee new franchisees.

Franchising Is All About Proven Business Models

Just about everyone has eaten a Big Mac from McDonald’s before, and if you’ve ever enjoyed this same meal more than once, you’ve experienced the “secret sauce” behind its attraction. The process of replicating a product or service to ensure a consistent customer experience is the centerpiece of a franchisor’s proven business model. It doesn’t matter if you’re talking about cheeseburgers or a residential window washing service. If a franchisee can diligently follow the procedural guidelines laid out in the brand’s operations manual, they’re actively engaging in the brand’s proven business model—a veritable roadmap for success.

An Advantageous Route to Business Ownership

For those with an entrepreneurial mindset and a desire to become their own boss, it’s widely accepted that there are three paths to take. You can start up a business of your own, buy an existing business from its current owner, or explore the contractual relationship of franchising. The latter choice has its advantages, as franchisees never have to reinvent the wheel to get the business of their dreams up and running. Many new franchisees have described their budding operation as a “business in a box” because of the all-inclusive tools, systems, and operating procedures built into the business model. In the quest to become your own boss, franchising offers a head start and a leg up for its new business owners.

According to some of the most recent statistics, franchising is becoming more and more of a thriving industry. With over 750,000 units in the U.S., franchising employs more than eight million people and accounts for roughly three percent of the country’s GDP. Franchising is much more than a simple definition, and the best way to get acquainted is to do some research and begin looking at business concepts — the starting point of what the franchise industry refers to as the “investigative process.”