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You are here: Franchisee Book > The Franchisor THE FRANCHISOR Sub topics
Being "single" in the business world today is not an ideal situation and is generally very tough. Many entrepreneurs are not excited about "going it alone." Today many individuals seek professional advice and help in determining and establishing their businesses.
One key element in the franchising system is the franchisor. In investigating any franchise organization it is important to go back and look at the originator or creator of the franchising organization. The founder of the franchising organization has been able to develop a system which is result of a specific vision allowing for success to grow and develop within the confines of the organization. A franchising organization is established on a relationship of mutual trust between the franchisor and franchisee. The franchisor brings an organization, structure, discipline and standardization of the operating procedures to the organization. The franchisee brings the entrepreneurial "spirit" -- a high drive and desire for success -- that generally is not available to the franchisor from their employees. You should take the time to research the franchisor. You should understand how long he has been in business as a franchisor as well as his business experience prior to becoming a franchisor. You should try to find out his financial background and the profits that he has been able to obtain in his various business activities. In addition, you should investigate the products and services that are being offered to the end consumers. Does the franchisor continue to innovate and bring new products to the market? Does the franchisor allow the franchisees to introduce new products? Does the franchisor encourage franchisees to help develop new and improved systems of operation? What is the major orientation of the franchisor toward the franchisees? Is this a superior/subordinate relationship? Is this a dictator/servant relationship? Or is this a relationship of equality? Historically, many franchisors/franchisees relationships were depicted as traditional organization charts with the franchisors on the top and the franchisees serving as subordinates or employees. The successful franchise organization today generally envisions the franchisor and franchisee each contributing equally to the growing franchise system. The franchisee will be contributing money, time, and effort while the franchisor contributes names, products, services, and managerial expertise. This association tends to prosper and grow according to the effectiveness of this equality in a relationship.
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