Some of the franchise industry’s leading experts offer their advice to the most frequent questions asked by franchise seekers.
How is a franchisor different from a boss?
Cathryn Hayes, HSBC Head of Franchising:
The relationship between an employee and employer is often very different to that of a franchisee and franchisor. An employer pays you a salary, sets your working hours, tells you how to do your job. If the focus of the business changes, an employer will send out instructions and employees will have to follow.A franchisor is there for support and guidance – it is a different relationship, more ‘grown up’ in some ways. If things change, a rebrand, say, or new products, the franchisor needs to persuade and convince the franchisee to implement the changes. Franchisees cannot be told what to do in their own businesses. A franchisee is not an employee – he or she is an independent business owner – and woe betide the franchisor who tries to issue orders!
Do I need to know how to run a business?
David Paulson, FranMatch Executive
Many franchisors recognise the need to assist new franchisees in getting their business off the ground, and so create a training and support package which covers all areas of the business, often suitable for people who have never owned their own business before. This support is funded by the ongoing management service fee paid by franchisees. Read on…
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