WHAT MAKES A SUCCESSFUL FRANCHISE CONCEPT ? ( PART ¾ )
CO-FALL 2009Author :
Georges Sayegh 
F. Georges Sayegh, Adm. A., CMC, and former chairman of the action committee on
franchising in the Order of Chartered Administrators of Quebec. He is a member of the Quebec Franchise Council and
consultant specialist in franchising and transfer technology. Email: gsayegh@gsayegh.com
VII. SITE SELECTION AND LEASE NEGOTIATION
A uniform site selection carefully developed by the company is offered to the franchisee. Furthermore, advice and assistance in negotiating the lease for the chosen location should also be offered by the franchisor.
VIII. CRITERIA AND ARCHITECTURAL STANDARDS
Qualified professionals who understand the particularities of the franchisor‘s industry provide plans, specifications and standard monitoring of the whole process of the franchise construction. These qualified representatives bring assistance and advice with regard to all phases of construction, development, acquisition and installation of equipment and furniture, decoration and the establishment of the franchise.
IX. PROCUREMENT
Attention should be directed to providing the necessary procurement and supplies (initial and continuing) for the operation of the network establishments. Management of the procurement includes negotiation with the authorized suppliers, as well as the conditions of supply that will ensure a favorable return to the franchisees.
X. PROVEN METHODS
A comprehensive Operations Manual must be maintained up-to-date at all times. It must offer its franchisees and their staff an easy way to learn the operation. It must also offer an extra value in order to maintain skills or learn new working methods or new skills in a particular area. It is the responsibility of the franchisor to ensure that learning is taken seriously by all franchisees and their staff.
Indeed, it is the franchisor’s responsibility to ensure that operations are properly understood by the franchisees and their staff and that quality control standards are periodically monitored and enforced.
XI. COMPREHENSIVE TRAINING PROGRAMS
An ongoing methodical and orderly training program should be provided to ensure that a cost-effective approach is offered to both the franchisor and the franchisee. A common strategy should be integrated so that such training takes place at both the franchisor’s headquarters and on site at the franchisee’s location. These training programs should be offered and monitored on a regular basis.
XII. STRONG MANAGEMENT TEAM
A management team made up of strong directors (as well as qualified consultants) who understand both the particularities of the industry in which the company operates and the business aspects of franchising as a method of expansion, is mandatory. They must pursue new products that reflect the objectives and corporate strategies. This team must constantly analyze: the market and its need; then re-analyze the way of doing business, staying current with its trends to create a value for the brand; and thus ensure the profitability of the franchise. The franchisor and its team must constantly refer to these elements.
XIII. INTENSIVE AND CONTINUOUS ASSISTANCE
Comprehensive and intensive assistance at all stages of preparation for the opening of the establishment of franchisee, as well as the actual opening and the early days of operation is necessary to ensure that the franchisee receives the necessary support needed during this critical period of his new operation.
XIV. FIELD SUPPORT STAFF
Field support staff must be skilled trainers and good communicators. They must be available to periodically visit and monitor quality control standards. They must know the business inside out. They must also be willing to listen to the franchisees and their grievances. They must analyze each situation and find the best solutions to assist the franchisees, always keeping in mind that the success of the franchisor is the success of the franchisee. It is a win, win operation.
XV. REPORTING SYSTEM
An effective management reporting and record-keeping system is imperative to maintain the performance of the franchisees and ensure better management of the operation of every establishment. It goes without saying that this will improve control over the income of the franchisor through the perception of royalties and other revenues accurately reported and promptly paid.
A uniform site selection carefully developed by the company is offered to the franchisee. Furthermore, advice and assistance in negotiating the lease for the chosen location should also be offered by the franchisor.
VIII. CRITERIA AND ARCHITECTURAL STANDARDS
Qualified professionals who understand the particularities of the franchisor‘s industry provide plans, specifications and standard monitoring of the whole process of the franchise construction. These qualified representatives bring assistance and advice with regard to all phases of construction, development, acquisition and installation of equipment and furniture, decoration and the establishment of the franchise.
IX. PROCUREMENT
Attention should be directed to providing the necessary procurement and supplies (initial and continuing) for the operation of the network establishments. Management of the procurement includes negotiation with the authorized suppliers, as well as the conditions of supply that will ensure a favorable return to the franchisees.
X. PROVEN METHODS
A comprehensive Operations Manual must be maintained up-to-date at all times. It must offer its franchisees and their staff an easy way to learn the operation. It must also offer an extra value in order to maintain skills or learn new working methods or new skills in a particular area. It is the responsibility of the franchisor to ensure that learning is taken seriously by all franchisees and their staff.
Indeed, it is the franchisor’s responsibility to ensure that operations are properly understood by the franchisees and their staff and that quality control standards are periodically monitored and enforced.
XI. COMPREHENSIVE TRAINING PROGRAMS
An ongoing methodical and orderly training program should be provided to ensure that a cost-effective approach is offered to both the franchisor and the franchisee. A common strategy should be integrated so that such training takes place at both the franchisor’s headquarters and on site at the franchisee’s location. These training programs should be offered and monitored on a regular basis.
XII. STRONG MANAGEMENT TEAM
A management team made up of strong directors (as well as qualified consultants) who understand both the particularities of the industry in which the company operates and the business aspects of franchising as a method of expansion, is mandatory. They must pursue new products that reflect the objectives and corporate strategies. This team must constantly analyze: the market and its need; then re-analyze the way of doing business, staying current with its trends to create a value for the brand; and thus ensure the profitability of the franchise. The franchisor and its team must constantly refer to these elements.
XIII. INTENSIVE AND CONTINUOUS ASSISTANCE
Comprehensive and intensive assistance at all stages of preparation for the opening of the establishment of franchisee, as well as the actual opening and the early days of operation is necessary to ensure that the franchisee receives the necessary support needed during this critical period of his new operation.
XIV. FIELD SUPPORT STAFF
Field support staff must be skilled trainers and good communicators. They must be available to periodically visit and monitor quality control standards. They must know the business inside out. They must also be willing to listen to the franchisees and their grievances. They must analyze each situation and find the best solutions to assist the franchisees, always keeping in mind that the success of the franchisor is the success of the franchisee. It is a win, win operation.
XV. REPORTING SYSTEM
An effective management reporting and record-keeping system is imperative to maintain the performance of the franchisees and ensure better management of the operation of every establishment. It goes without saying that this will improve control over the income of the franchisor through the perception of royalties and other revenues accurately reported and promptly paid.