One of the main attractions of investing in a franchise is that the new enterprise almost always comes equipped with well-established policies and procedures that have delivered proven success. The idea is that by following the plan the franchisor provides; you can avoid all kinds of potential pitfalls and mistakes that might otherwise prove costly.
That’s hardly where franchisor support ends, generally speaking. Franchisors want each of their individual outlets to do well and be profitable, because that helps the franchisor grow their brand(s). Support may come in different ways. Some support channels are intended to help new owners get their business open and operating, while others are better suited to franchisees at any stage of running their business.
If you’re researching potential franchise ownership opportunities and want to compare the extent of franchisee support programs they offer, here are a few different things to look for.
Initial training & ongoing education opportunities
Many franchisors will compile a manual that lays out all the policies and procedures for running a franchise business. Equally valuable is providing the opportunity for new owners to experience learning hands-on. At many franchise businesses, new owners undergo a multi-day or multi-week course that starts with classroom instruction, possibly at the corporate headquarters. This is often followed by or book-ended by a period of supervised in-store training, which provides a supportive environment to put lessons into practice.
Even after individual owners are up and running, franchisors will often provide ongoing training and development opportunities to their franchisees, helping them advance and refine their skills and knowledge. In some instances, these courses are offered virtually, allowing them to be completed remotely and on the individual franchisee’s schedule and time frame.
When considering a franchise business, ask the following:
- What is the comprehensive training program like?
- How long does initial training last?
- Where is training conducted? Will there be travel involved and what would be the associated costs?
- What channels are available for ongoing support? For example, online portal, manual of policies & procedures?
- Are there field-level operations support staff?
- Are there opportunities for peer-to-peer learning?
Site selection and construction
Finding and building an appropriate home for your new franchise business is obviously hugely important, not to mention complicated. Some franchisors will be able to simplify the process with a list of pre-approved locations, or support in finding a suitable spot. The franchisor may also provide approved vendors for construction supplies and construction, part of their effort to ensure a consistent brand experience across multiple locations with different owners.
When considering a franchise business, ask the following:
- What are the criteria used to identify potential sites for a new location? (Demographics, traffic patterns etc.)
- How involved is the franchisor in the site selection process?What level of input does the franchisee have in the site selection process?
- Does the franchisor provide support in negotiating lease terms with landlords?
- What key lease provisions are required when evaluating a potential location?
- Does the franchisor have a standard site development plan that franchisees must follow?
High-quality supplies at competitive prices
Just as franchisors want consistency across their locations when it comes to imaging, they want the same thing when it comes to the products and services being offered. By buying supplies in bulk from approved vendors, franchisors are often able to take advantage of economies of scale and pass those savings on to individual owners. As a result, franchise owners can purchase reliable, high-quality supplies for their business at a lower price than they’d be able to negotiate individually.
When considering a franchise business, ask the following:
- Are franchisees required to purchase all supplies solely from designated suppliers?
- Does the franchisor have a formal supplier vetting process?
- Are there any exclusive agreements with specific suppliers?
- How are supplier prices determined for franchisees?
- Do franchisees have the ability to source alternative suppliers in certain situations?
- How does the franchisor address issues related to supplier quality problems?
Advertising & marketing
Established brand recognition and trust is another appealing part of investing in a franchise business. That knowledge and trust are achieved, in least in part, by advertising and marketing campaigns co-ordinated by a franchise’s corporate arm. In most franchised businesses, individual owners pay regular royalty and/or advertising fees that help cover some or all of the costs of these efforts.
At the local level, a little extra advertising and marketing can go a long way to building curiosity and loyalty among your most important customers: the people in your community. Here, too, you should be able to lean on your franchisor for support and advice with marketing materials intended to help a fledgling franchise find its feet.
When considering a franchise business, ask the following:
- What types of marketing materials are provided to franchisees and how?
- Does the franchisor provide training on marketing best practices?
- How much input do franchisees have in developing local marketing plans?
- How does the franchisor support grand opening marketing efforts?
- Does the franchisor provide access to a marketing fund that franchisees can tap into for local campaigns? Or should a franchisee be prepared to fund local marketing activities themselves.
- Are there mandatory marketing fees that franchisees must contribute to national marketing campaigns?
- How much flexibility do franchisees have to customize marketing materials to fit their local market?
Expansion support
Once you’ve established yourself at one location, you might want to grow your investment by adding an additional franchise location. Franchisors want growth, too, so they’re often willing to support eager owners achieve their expansion goals and further capitalize on the benefits of economies of scale. Depending on the business, some franchisors may be able to access expansion opportunities in non-traditional locations, such as locations inside other businesses, on post-secondary campuses, or elsewhere. For example, The UPS Store has franchise opportunities within Walmart locations across Canada.
When considering a franchise business, ask the following:
- Does the franchisor offer any specialized training or coaching programs for managing multiple units?
- How does the franchisor’s field support team handle operations across multiple locations?
- How does the franchisor allocate territories when a franchisee wants to open multiple locations?
- Are there any discounts on franchise fees or other financial incentives available for purchasing multiple units?
- What percentage of the franchisor’s network of franchisees own multiple locations?
- Can the franchisor provide case studies or examples of successful multi-unit owners within the system?
Franchising with The UPS Store
The UPS Store is Canada’s largest network of print and copy centres. With robust, world-class training and significant benefits, including brand strength, extensive product and service offerings, and more, you can feel confident in your investment with us. Visit our FAQ page or fill out our online inquiry form to request more information.
