First-time Franchisees’ Expectations From the Franchisor
Most franchisees are first-time businessmen, which is why they are not aware of the tricks and hacks of running a franchisee unit.
According to survey reports, "A spurt of first-time entrepreneurs is driving the growth of the franchise industry in India, which is pegged to touch around USD 150 billion in size in the next five years."
The two-way affair demands clarity and an unspoken promise to meet each other’s expectations. A franchisor puts forth his expectations on the table easily but what a franchisee expects is equally important a thing which should be taken care of, by the franchisor.
One of the first and most important things that a franchisee expects from the franchisor is “what is the business experience he is buying from the franchisor?”
A franchisee expects to learn from the franchisor’s mistakes and should be informed about other failed franchise projects so that he/she would not repeat them.
A first-time franchisee is always pumped up with enthusiasm to do the best and utilize his energy in the benefit of the brand, thus he expects the franchisor to guide him and channelize his energy.
Also, a franchisee expects the franchisor to let him know his limitations especially in terms of development and idea implementations. How can the franchisee invest his ideas and circulate them under the franchisor’s guidance?
Financial and Costs:
A franchisee expects to know what the brand is expecting from that particular franchisee, in terms of growth and revenue generation.
The franchisee expects to know how much revenue he is allowed to invest in departments and in staffs to serve the customers better and how much profit percentage is going to her/his pocket.
A brand which has worked in several cities and places knows best when it comes to coordinating with suppliers and manufacturers.
A franchisee expects the franchisor to help him/her in getting the back end support as well as the support he needs in setting up his franchise unit.
Training and Selections:
A franchisee expects the franchisor to provide the required training to his staff as well as him on how to run the business smoothly and to keep harmony in and around the surrounding.
He/she also expects guidance on selecting the desired raw material to bring out fine products that the brand is known for.