When you initially step into the realms of a Franchise Opportunity one of the first things to hit you will most likely be the bulk of the “rule book”, or the document that sets out the basis under which you may conduct your business within your contract. There will also be a substancial amount of detail around the penalty of not abiding by these rules, some of which will be severe.
It is also distressing for a new franchisee to recognise that the good ideas that he puts forward on how to improve the running of the business are nine times out of ten not adopted by the franchisor, and more than that are discounted going forward. This is all very much key to Low Cost Franchise culture. A culture that causes a considerable amount of pressure and annoyance for individuals having just recently purchased a Franchise For Sale and less so for those who are old hats at the franchise model.
Those with more familiarity of the ways in which a franchise model works can understand the need for conformity across the whole organisation. 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 reproduce all over the territory in which it operates and therefore should be designed to allow regional differences in the system. The model must also take into account that the individuals running each franchise will have different capabilities and so it must be clear and enlightening enough for all to handle. This can sometimes mean that an individual with enhanced skills in a particular area is restricted in his actions as the rest of the franchisees would just not be able to operate at that level.
A lot of the compliance boils down to the ease in which the Franchise operator can monitor and control the whole team. If every franchisee for example was providing sales figures in a different format it would be very time consuming to assess the overall picture and so all franchisees need to use the same reporting process. If one franchisee decided that he was going to put a deal together for a particular package of products in a given 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 kinds of situations needing attention and the franchisor is spending all his time resolving disagreements 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 entire organisation. If you are considering a Franchise Opportunity do not necessarily be put off by a large and exhaustive list of do’s and don’ts. Often it is a indication that the franchisor has great plans for the business and has the fortitude and drive to get it there. This of course is precisely what a potential franchisee wants to hear as the brand and company growth will have a massive affect on the profits for each franchisee.
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