Franchise Headquarters
Franchise Operators
Customers
Course Objectives
•
Explain What is Franchising
•
List the Various Aspects of Franchise Management
•
Describe the Elements of Franchise Promotion
•
Describe the Important Financial Documents for a Franchise
•
Explain the Rules of Cash Management for a Franchise
•
Explain the Processes in Franchise HRM
•
Explain the Training Administration in a Franchise
•
Explain Elements of Franchise Store Operations
•
Describe the Role of Strategic Management in Franchise Management
•
Explain the SCM Strategies for Franchise Management
•
Explain How to Measure Performance of a Franchise
•
Explain the Elements of Health & Safety Program of a Franchise
•
Explain Why Franchisee Should Build Relationship with Customers
•
List the Responsibilities of a Franchise Store Manager
•
List the Tips for Efficient Franchise Management
Introduction
Look at the logos of a few companies given on the screen.
What do you think is common between all the companies
shown on the screen?
Introduction
Yes, all the companies
shown on the screen
follow the ‘Franchise
System’ of doing business.
That is, all of the
companies shown on the
screen have associated
with franchisees and have
expanded their business
to several countries across
the globe.
Introduction
‘Franchising’ means the
granting of a right or
privilege to an individual
or group.
In today’s modern world,
franchise includes
business arrangements
known as franchises,
licenses, dealerships and
distributorships.
Introduction
Hence, a franchise
includes a "product and
trade name" franchise
format in which the
franchisor is usually the
manufacturer of a
product, which it
wholesales to the
franchisee for resale.
Introduction
Also, there may be a
"business format"
franchise approach, in
which the franchisee is
usually not reselling a
product manufactured
by the franchisor. Under
both formats, the
franchisee is operating
the business according
to the franchisor's rules,
methods, and systems.
Introduction
You can understand that
in any kind of a franchise
format, it is crucial that a
franchisee must learn how
to manage his franchise
business well.
Let us learn about
‘Franchise
Management’ in detail.
What is Franchising?
Aspects of Franchise Management
There are various aspects involved in managing a franchise management.
A franchisee must understand and learn these various aspects of
franchise management in order to manage his franchise business well.
The following are the various aspects involved in Franchise Management:
Marketing &
Promotion
Administration
& Finance
Operations
Customer Service
01
03
05
07
02
04
06
Sales &
Revenue
Human Resources
Management
Health & Safety
Let us look at each in detail.
Categories of Expenditures of a Franchise
Categories of Expenditures
Fixed vs. Variable
Fixed :
Remains unchanged despite
changes in related level or volume
of activity.
Example: Salary of permanent staff
Variable:
Such expenditures are volume
dependent and vary in proportion to
changes in level of activity.
Example: Medicines, consumables,
power cost etc.
Direct vs. Indirect
Direct:
Clearly linked to a service
Indirect:
Cannot be clearly linked to a
particular cost object
Example: Administration cost,
Security cost
Tax Reporting and Franchise Management
A franchisee must remit
personnel income tax to the
IRS on a monthly basis.
State and local remittance
requirements and schedules
may vary.
Details of state and local
requirements can be
obtained from the state’s
department of revenue and
local officials.
Processes in Franchise HRM
•
Each franchise business works towards the realization of one
vision.
•
The same is achieved by formulation of certain strategies and
execution of the same, which is done by the HR department.
•
At the base of this strategy formulation lie various processes
and the effectiveness of the strategy formulation lies in the
meticulous design of these processes.
Franchise Performance Management System
The Franchise Performance Management System can
be divided into three broad sub-systems:
Monitoring
employee
performance
and
mentoring
employee
development
Planning
employee
performance
and
development
Annual
stocktaking
Training Program
Training Program
Training Program:
•
The following are a few key points to be considered for
conducting effective training of the staff at the franchise store:
o The franchise store manager must conduct frequent
training programs for the sales representatives, cashier
and other team members to motivate them from time to
time.
Strategy Evaluation in Franchise Management
Strategy Evaluation is as significant as strategy
formulation because it throws light on the efficiency
and effectiveness of the comprehensive plans in
achieving the desired results. The managers can also
assess the appropriateness of the current strategy in
today’s dynamic world with socio-economic,
political and technological innovations. Strategic
Evaluation is the final phase of strategic
management.
The significance of strategy evaluation lies in its
capacity to co-ordinate the tasks performed by
managers, groups, departments etc. through control
of performance. Strategic Evaluation is significant
because of various factors such as: developing
inputs for new strategic planning, the urge for
feedback, appraisal and reward, development of the
strategic management process, judging the validity
of strategic choice etc.
Vendor Management and Franchise Management
The practice of hiring vendors has
greatly increased and hence there
is a need for both sides to sit
down and discuss the modalities
of the contractual relationship
before committing themselves to
the same.
In this way, disputes over
responsibility and accountability
can be amicably resolved if the
contracts are worded in such a
way that there is little room for
ambiguity.
Chances of Getting Referrals
Building relationship with customers in current market trends is the most
important aspect that a franchisee should focus on for customer retention.
The following are some of the substantial outcomes of building a long-term
relationship with the customer:
1
2
3
4
5
6
7
Let’s look at each in detail.
Role of Customer Loyalty in Franchise Management
It is very important for a franchisee to build
loyalty among their customers towards their
product or service. Loyal customers usually
are the most profitable as they:
•
•
•
•
•
•
Form the bulk of the sales volume.
Cost less to serve because they are
further up the relationship learning curve
with your franchise.
Refer other customers and generate
positive word-of-mouth promotion for
your products and services.
Readily purchase new products
introduced by your franchise.
Are receptive to up-selling (buying higherpriced versions of products) & crossselling (buying other types of products).
Are the most forgiving when problems
occur.
Role of the Franchise Store Manager
Recruiting employees for the store is the
franchise store manager’s prime responsibility.
He not only has to hire the right candidates for
the store but also train them for their overall
development. He must ensure that all the
employees (floor manager, department
manager, cashier and so on) contribute to their
level best for the effective functioning of the
franchise.
He must act as a strong pillar of support and
stand by his team at the hour of crisis. It is his
duty to update his team members about the
latest policies and procedures of the franchisor.
ManagementStudyGuide.com
This is a DEMO Course On – Franchise Management.
Become a Lifetime Member and Get Access to Unlimited
Course Presentations.
What You Get:
1. View All Courses Online.
2. Download Powerpoint Presentation for Each Course.
3. Do the Knowledge Checks for Each Course.