“You should open up your own franchise.”
“You can be your own boss.”
“Get in touch with a franchisor.”
“Become a franchisee.”
These are all phrases that we’ve heard time and time again, but what exactly is a franchise? What is a franchisor? What is a franchisee? What does it really mean and entail to be your own boss?
A franchise is defined as “a method for expanding a business and distributing goods and services through a licensing relationship” (source). In franchising, there are franchisors and franchisees. A franchisor is the person or company that grants a license to a franchisee; they do business under the trademark and trade name.A franchise is defined as “a business opportunity that allows the franchisee to start your business by legally using someone else’s expertise, ideas, and processes” (source). Since franchisees own and run their own franchise, they are seen as their own bosses! Hence, the phrase: “Be your own boss.”
At first glance, it might seem as though franchising is all about making money, while making sure you run the franchise according to the rules. In reality, franchising is about:
- – The franchisor’s brand value & franchisee’s obligation to deliver
- – How the franchisor supports its franchisees
- – The relationship between the franchisor and franchisees.
Franchisor’s Brand Value & Franchisee’s Obligation to Deliver
According to franchise.org, “a franchisor’s brand is its most valuable asset.” Therefore, it doesn’t really matter who owns the business – rather, what’s really important is that consumer expectations of the brand are met. The franchisee’s main job is to make sure products and/or services are delivered in the way the franchisor intended. It is also very important for the franchisor to effectively deliver the brand’s value to franchisees. In most cases, franchisors provide resources and support services that can assist franchisees in carrying out this mission, which will be discussed below.
How the Franchisor Supports its Franchisees
Franchisors provide a variety of support services to franchisees in order to ensure the proper and efficient running of the franchise. This is necessary in order for the franchisees to live up to the expectations of the franchisor. Since support is based on the contract you sign, the amount and type of support varies depending on the franchise and franchisor. Some support services could include the following: initial training, continuing training, marketing and advertising assistance. At RAMMP, some of our support services include the following: Comprehensive Franchisee Training Programs, Onsite Training and Opening Assistance, Ongoing Operational Support, and Advertising and Marketing.
Relationship between Franchisor and Franchisees
Franchising is actually all about relationships. A 2014 survey by Franchise Business Review on franchisees’ relationship with their franchisors determined that 90 percent enjoy operating their business, 88 percent of franchisees enjoy being part of their organization, 85 percent feel positive about their affiliation with their franchisor, and 83 percent respect their franchisor. At RAMMP, our franchisees really enjoy being a part of our team. One of our fellow franchisees, Frank, is really enjoying his first experience as a Mr. Mikes franchise owner. “I love being my own boss and being able to run my own business with the support of RAMMP along the way,” says Frank.
If you didn’t know about franchising before, we hope the concept of a franchise is less daunting! If you’re wondering if Mr. Mikes is right for you, check out our Mr. Mikes franchising page to learn more!