What Types of Franchise Support Should I Expect From My Franchisor?

AllBusiness Editors
Tue, 23 May 2023 18:17:47 +0000
Franchisee, Franchisor, Franchising, Franchise

There are many benefits to buying a franchise versus starting a business on your own. You're getting a "ready-made" business that includes brand recognition and an established customer base. However, one of the biggest benefits is training and support. You're in business for yourself, but not alone, thanks to the guidance offered during startup, and then ongoing franchise support as your business grows.

5 types of franchise support

A franchisor will typically offer the following assistance to franchisees:

1. Financial assistance

Not all franchisors offer financial assistance but some do have financing programs available to franchisees. Some franchise companies are part of the International Franchise Association's VetFran program which provides financial incentives to veterans.

2. Location selection

Some franchisors will help franchisees select a location for their franchise or may select the location, not allowing the franchisee to choose at all. The benefit of the franchisor selecting the location is that they have experience choosing locations that are successful.

3. Training/operations manual

In order to run your business, the franchisor provides a detailed operations manual that includes instructions for carrying out their operating system. It establishes the rules, standards, and specifications of the franchise, and defines specific job responsibilities and tasks. The manual contains information about the roles of employees in the business, the main processes and protocols, and performance and management standards.

Before you can open your franchise you may need intensive training about the operating system and business as a whole. Training can take place at the corporate headquarters, so you may need to factor in travel expenses, at your franchise outlet or a combination. Most franchisors offer periodic training and seminars.

More articles from AllBusiness.com:

Site Selection: What Your Franchisor Will and Won’t Do For You

Get the Most from a Franchise Training Program

Financial Questions to Ask Yourself Before Buying a Franchise

Do-It-Yourself Site Selection for Your Franchise

What Franchise Payments Should Franchisees Expect to Pay?

4. Advertising and marketing

Most franchisors initiate advertising and marketing efforts, either on a national or local level, or both. These initiatives can be in the form of TV and radio commercials, direct mail campaigns, social media, and PR and media relations efforts. Many franchisors require franchisees to pay into a fund to cover these costs or will offer a co-op arrangement where the costs are split.

5. Ongoing support

Most franchisors will offer ongoing support such as administrative (e.g., human resources and accounting) and/or technical support. Many large franchisors have hotlines that franchisees can contact headquarters for additional support. Franchisors can advise on employee issues, insurance requirements and other matters relating to the operation of the business.

Where to find out more about franchise support

Before investing in any franchise, speak with both current and former franchisees of the business to find out whether the franchisor offers the support it promises.

RELATED: Want to Start a Business? Maybe You Should Buy a Franchise

FAQs about franchisee training and support

Below we have summarized the most important questions and answers on the subject.

What support does the franchisor provide?

A franchisor will usually offer franchisees:

1. Financial assistance

2. Location selection

3. Training

4. Operations and marketing

5. Ongoing technical and/or administrative support

Does the franchisor provide training for the franchisee?

Most franchisors offer periodic training and seminars. Training may take place at the corporate headquarters, at your franchise outlet, or both. The franchisor will also provide a detailed operations manual that establishes the rules, standards, and specifications of the franchise, as well as the main processes and protocols, and performance and management standards.​