Setting up a Franchisee Business?


Running a franchise business successfully calls for the same methodology and ground rules that you would follow for a new business startup. Additionally you have to bear in mind that franchise calls for a fee that needs to be paid to the parent brand followed by a percentage of amount from the profits once your franchise business starts generating a profitable amount. The challenges of running an established brand might come in handy or prove otherwise.

Relationship between Franchisor – Franchisee

  • Franchisee businesses will have a set of rules and if they didn’t have these rules then they would be franchisors but independent small businesses.
  • It is a plan laid out by the franchisor so, be prepared to follow their plan and not yours.
  • So! Ask yourself, are you “OK” with following rules and regulations laid out by the franchisor?
  • Franchisee business is suitable for you, if you are alright with the idea of following rules laid out by the franchisor and have the motivation to put your expertise into your franchisee business. Only this aspect will make you the right candidate to start a franchisee business and run it successfully.


Setting Objectives and Making Plans: It is important that you draft a plan. It can be a short term or long term business plan. With a plan and goals you will know how to handle your expenses, obstacles and much other aspect important to run a franchise business.

Tools and Methodologies:

  • Adopt proven methods to train your staff.
  • Use any means to teach like tutorials online, DVD’s, free downloads of manuals online so on and so forth.


Networking and Socializing:

  • Make sure you attend to meetings or group discussions with other franchise business owners.
  • With net-working you stand a chance of attracting new clients.
  • Ensure family and friends are also informed about your franchise business. After-all relatives and friends are the best advertisers to promote your business
  • If you are doing well and are true to your business then the customers will do the rest for you- spreading the good word about your business.

Hiring the right staff:

It is imperative that you remove your bad staff if you know that despite adequate training they are not up to the mark. A good employee will work-hard even if you do not have a good incentive plan in place. An employee with no intention of doing the job will bring down your business.


Customer Satisfaction and Feedback:

It is extremely important that you generate customer feedback. Whatever feedback you receive do not try to bury it under the couch but work harder to improvise and ensure your customers know about the changes you’ve made, based on their feedback.