Written by When you initially step into the area of a Franchise Opportunity one of the first things to come to your attention will probably be the extent of the “rule book”, or the file that sets out the basis under which you may conduct your business within your contract. There will also be a extensive amount of detail around the penalty of not obeying these rules, some of which will be strict.
It is also disturbing for a new franchisee to realise that the good ideas that he comes up with on how to improve the operating of the business are nine times out of ten not taken up the franchisor, and more than that are disallowed going forward. This is all very much key to Low Cost Franchise culture. A culture that causes a significant amount of stress and annoyance for individuals having recently purchased a Franchise For Sale and less so for those who are old hats at the franchise model.
Those with more knowledge of the ways in which a franchise model works can appreciate the need for conformity across the board. This generally means that the same rules apply to all franchises across the country but similarly it could apply overseas too.
The model must be easy to copy all over the territory in which it operates and therefore should be configured to allow regional differences in the system. The model must also take into account that the franchisees running each franchise will have different skills and so it must be clear and informative enough for all to handle. This can sometimes mean that an individual with heightened skills in a particular field is restricted in his actions as the rest of the franchisees would simply not be able to operate at that level.
A lot of the compliance boils down to the ease in which the Low Cost Franchise operator can monitor and control the complete team. If every franchisee for example was submitting sales figures in a different arrangement it would be very time consuming to evaluate the overall picture and so all franchisees must use the same reporting documentation. If one franchisee decided that he was going to put a deal together for a particular bundle of products in a selected month the sales of the franchisee in the bordering patch may be affected. This could rocket to a complaint to the franchisor. A few of these sorts of situations needing attention and the franchisor is using all his time resolving disputes rather than continuing to grow his company.
So the rule book, although huge, is there for a very good reason, the continued growth of the complete organisation. If you are considering a Franchise Opportunity do not necessarily be disheartened by a large and comprehensive list of do’s and don’ts. Often it is a indication that the franchisor has great plans for the company and has the willpower and drive to get it there. This of course is exactly what a potential franchisee wants to hear as the brand and company growth will have a massive affect on the profits for each franchisee.
Quite true… the organisation and structure of a franchise business is what makes it successful in the first place. Being that the heart of a franchise is its proven system.. its necessary to have rules and structure in place so it can be followed easily by another person (i.e. a new franchisee). Certainly not a restriction and, as you rightly point out, its in fact a good sign that the franchise is well put together and organised.