What Are Franchisees Looking For From A Franchise?

Being a franchisor means having numerous franchisees around the country with different needs. Their needs might differ depending on their location, their clientele, and their employees. While a franchisee is not an employee, there are some similarities between the relationship. For instance, keeping franchisees happy tends to help the franchise as a whole run more smoothly.

So, what is it that franchisees actually want from franchises? What methods can you implement to ensure that your franchisees are happy and provided for? And, how does it benefit you to ensure you’re meeting the needs of your franchisees?

Find out the answers to all these questions below.

What is a Franchisee?

A franchisee is an individual (or entity) that buys the rights to operate a business under the name and business model of an already established business, known as the franchisor. The franchisee is allowed to sell the products and services of the franchisor and use the branding, trademarks, and operation procedures.

The franchisee pays fees to the franchisor for the continual use of these rights and is often given an exclusive territory within which to operate. Through this kind of agreement, the franchisee benefits from the name recognition and branding of the franchisor.

What are Franchisees Looking for From a Franchise?

So, what is it that franchisees are searching for in a franchise? And how can you ensure you have the things they’re looking for?

#1 A Solid Brand Reputation

A well-known brand with a good reputation is always going to be beneficial to a franchisee, which means that the most popular franchises are often those from well-known brands. From a franchisee perspective, they have more chance of success if their customers already know the brand they’re working under.

If you’re considering franchising, ensuring that your brand has a good reputation is key as it can draw in good franchisees.

#2 Comprehensive training

One of the positives of becoming a franchisee is access to training. Franchisees might be developing their skills as a business owner, without the risk on their part, which means they want to learn. They also want to be able to keep their employees up to date with the latest regulations and ensure everyone is fully trained and prepared.

As a franchisor, make it a priority to have a comprehensive training plan. You should offer as much as you can to franchisees to ensure that their franchise operates smoothly and reflects well on the brand.

#3 Proven Business Model

As someone looking into franchising, you will need to be honest with yourself about your current business model. You have to know that it is not only working but that it is scalable and doable for franchisees too. A proven business model means that you can pretty much leave your franchisees to it because you know that your business works.

Franchisees are unlikely to want to take the risk on a business model that doesn’t have historical success and profitability. Ensure you have clear operational procedures and that efficiency is at the heart of all you do.

#4 Support

Support is a very broad word but franchisees want many kinds of support from their franchisor. These include the following.

Operational Support

This means offering support with general operations, like management practices, inventory issues, and any customer service support that is required. You can think of this as day-to-day support and will likely function on an as-and-when basis.

Franchisees will want to know that they can rely on you to pick up the phone if they need it.

Marketing Support

Marketing is often a tough aspect of being a franchisee for many individuals, so offering support for regional, national, and international marketing campaigns is key to happy franchisees.

Technical Support

We all need a bit of technical support sometimes, and so, too, do your franchisees. Whether you’re implementing new systems or just getting people up to date with how things are done, ensure that you have support in place for franchisees that is specific to the technical aspects of the franchise.

#5 Territorial Protection

Protected territories help franchisees avoid market saturation and direct competition with franchisees under the same brand. It means that your franchisees are only competing with your competitors rather than with each other.

Franchisees don’t want to compete with people within their own brand, and if they’re not, there is more chance for support and community. A sense of community can mean franchisees have somewhere to turn when they need support and they can find it in other franchisees.

#6 Exit Strategy

While you don’t want your franchisees to be planning to leave before they even come on board, it is always best to ensure they know how they can leave. An exit strategy might include resale assistance to ensure that they can move on when they want as well as very clearly defined exit terms.

You’re never going to get the best out of a franchisee who doesn’t want to be a franchisee anymore, which means giving them the clear steps they need to take to leave is in your best interests.

#7 Benchmarking

Franchisees want aims and performance reviews so that they can monitor their progress and meet their goals. Benchmarking usually involves other franchise locations and can ensure a healthy sense of competition.

Benchmarking and performance reviews can push your franchisees to perform better and give them a sense of achievement.

#8 Effective Communication

Everyone wants effective communication, whether a franchisee or not. As a franchisor, if you have good communication methods with your franchisees, you can keep them up to date more efficiently and will be able to avoid mistakes caused by unclear instructions.

#9 Transparency

And lastly, being transparent with your franchisees means they’re going to be more transparent with you. It means that you both trust each other enough to be open and honest in your communication and keep each other abreast of issues before they become major.

How Meeting Your Franchisees Needs Benefits You

Meeting the needs of your franchisees has many benefits but the main one is that your franchisees will be happier in their role. Happy franchisees mean many things for a franchise including:

• More dedicated franchisees who are loyal to the brand
• Motivated franchisees who are more likely to bring in higher profits
• Teams who are meeting your quality standards across the board
• More chance for feedback and methods of improvement 

How Eden Exchange Can Help You Find the Perfect Franchisees

Eden Exchange has been supporting franchisors since our inception. Our DealXchange platform not only benefits franchisees looking for franchises but can support franchisors too.

Using the platform puts you in touch with qualified leads actively looking for opportunities within your industry. Our platform is designed to streamline the whole process and gives you a place to securely negotiate terms and sign contracts.

We’ve worked with many Australian franchises to successfully secure them the best franchisees for their locations. You can book in a free demo of the platform today to find out more about how it can support you.

Final Thoughts

Franchisees, in general, want to feel supported by a franchise. They want to know that if they have an issue, you will be there to give them advice. They want comprehensive training to ensure they can run things smoothly, and they want the opportunity to make a return on their investment.

Being a franchisor comes with lots of responsibility but keeping franchisees happy has many benefits. It can ensure the continuity of your good reputation and mean much higher profits.

If you’d like to know more about how Eden Exchange can support you as a franchisor, then contact us now.

Who we are

Eden Exchange is an integrated multi-channel platform, simplifying business buying and selling. We match, refer and connect business buyers, sellers & brokers in an ecosystem that facilitates frictionless franchise, business and finance transactions. Visit www.EdenExchange.com and connect with our engaged and multidimensional transaction network today.