FRANCHISE OWNERSHIP BENEFITS AS A FRANCHISEE
Prospective business owners have to consider carefully how they want to start their business. Some try going solo, some start a business as a partnership, and finally, some start a franchise. Starting a franchise is a good way to get into a new industry or to get help taking the next step in your career in an industry with which you’re familiar. Of course, every franchise owner has responsibilities.
YOUR JOB AS A FRANCHISE OWNER
Franchise ownership carries its fair share of duties. Among the regular responsibilities of a franchise owner is to set up and maintain the daily finances for their location. If you own multiple locations, you may delegate some of these duties to location managers, but you will still likely need to handle the overall budget and business strategies for your locations. You’ll also need to handle things like supply purchases and putting together a business plan for each location.
Depending on the business you go into, particularly if your franchise is in a service industry, your customer base may comprise of regular clients whom your business regularly serves. If that’s the case, your duties will likely include managing membership records, making sure to keep careful and accurate accounts of the services provided to each one, any special requirements they have, outstanding bills on their accounts, and any pertinent information about each member so your staff will know how best to provide them service. You’ll also be responsible for coming up with a method of recording new member information so staff can easily add to your membership database.
If you’re the hands-on type of franchise owner, or you have only one location which you run personally, it will be your responsibility to handle all daily administrative operations. This includes managing your payroll, keeping track of your business’s inventory, writing up profit-and-loss statements, and depending on the size of your business, facilitating communication between departments.
These are some of the more common responsibilities many franchisees take on. You may have to engage in customer service as well when a particular customer requires a personal touch to assist. You’ll also have human resource duties if you don’t have staff to handle that. Even if you do, it’s generally a good idea for a franchise owner to be involved in the process of hiring staff, addressing performance issues, promotions, and addressing staff departures or terminations.
RECURRING COSTS AND FRANCHISOR SERVICES
Making sure all the bills get paid is an important part of franchise ownership. Every business has expenses, and it’s up to you to be sure that you’re bringing in enough revenue to cover them and set up a system that pays those bills on time. Other ongoing expenses may depend on your given industry. A retail franchise or a service franchise that requires materials to operate will have regular shipping and inventory expenses. If your business requires a physical store or office space, then you may need to pay rent or a lease.
Some of your expenses are recurring fees paid to the franchisor themselves, usually in return for services they provides. Royalties are ongoing fees paid to the franchisor and others for continued use of proprietary products, including brand names and logos. Advertising and marketing fees are also often paid by franchisees to franchisors, and in return they receive market research services and advertising assistance. Usually the franchisor handles the wider marketing of a brand on a state, national or even international scale, while the franchisee may be responsible for local advertising and marketing, such as buying ads in local publications, local radio ads, or commercials on local tv stations.
Franchisors also provide their franchise owners with ongoing training. They are responsible for helping their franchisees keep up with the latest products, service innovations, industry technology, and other developments in the industry. Many franchisors even provide administrative services, such as HR, credit control, and invoicing.
BECOME A FRANCHISEE WITH ERA
Franchise ownership means being in business for yourself, but not by yourself. By joining ERA, you’ll be a member of a wide network of professionals from a wide variety of industries. We’re a cost reduction franchise dedicated to helping our clients find savings in their regular operations, streamlining their business practices to reduce their costs and improve efficiency. We’re looking for entrepreneurs like you who are interested in sharing your experience and expertise with our clients while working together with other consultants around the globe. Learn more about your opportunity to become a consultant with ERA, and contact us today for more information.