By Eric Parker
In these difficult trading times with product/service parity, the real defining customer benefit will be SERVICE.
So the question is how do we achieve superior service? Simply it all revolves around the team of staff who interface with the customer. This team need management’s full support and clear levels of authority.
It is a proven fact that an OWNER OPERATOR will outperform an EMPLOYEE because they have a vested interest and are at extreme risk if they do not maximise the venture. The best way of incorporating an Owner Operator into your business is to evaluate FRANCHISING from our experience, an owner operator will outperform an employee by at least 30% in terms of sales.
The clear advantages of incorporating FRANCHISING into your business are:-
|1.||You can recruit a much better quality person/manager.|
|2.||The franchisee will be highly motivated and offer superior customer service because they have “skin in the game”|
|3.||You as the Franchisor will have a different management style because you don’t need to police the small things (petty cash, telephone etc) but need to give strategic guidance.|
|4.||The Franchisor will receive a superior R.O.I. because there is zero set up costs, but a Franchise fee is received.|
|5.||The Franchisor can grow its footprint quicker.|
|6.||The marketing fund will be larger, increasing the value of the brand which is owned by the Franchisor.|
|7.||Increased turnover will improve your procurement ability resulting in better deals.|
|8.||A local franchisee will start with a clear advantage because they are well known and respected in their area.|
|9.||Franchising is a very important tool in your BEE development.|
|10.||High quality franchisees will give you constructive feedback and possible new product/service ideas.|
Like all systems Franchising will only be effective if implemented correctly.
We at Franchising Plus would welcome the opportunity to meet with you and your team to discuss if Franchising would be suitable for your business.