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Franchisor Book > The Franchisor Feasibility Plan > Management MANAGEMENT Management
is generally defined as "getting things done through people."
In franchising, management may be the most crucial element of the
franchise program. The
management personnel are going to help lead you to success or failure.
The two main reasons for failure in business are (1) poor
management and (2) lack of capital.
The management section is designed to outline who the franchise
key people are and what they will be doing, the organization structure,
the basic policies, the operations manual, training manual, and
franchise pert chart.
Any
organization is going to be structured around the key personnel in that
organization. Whether in a one
man operation or a ten man operation, a franchising organization is
going to be structured around the key individuals.
The major key player is going to be the franchisor, sales manager
and operations manager. The
franchisor, sales manager and operations may be simply two people, but
the sales manager and operations manager need to be distinct and
different people. In addition, there may be other staff members
(trainers, sales people, field staff and marketers) who
are the key personnel in the development of the franchise system.
This section needs to answer the question of which key personnel
are going to be doing what, when, where, how, and why.
The
franchisor needs to be able to develop an organizational chart which
diagrams and describes the organization relationships of their own
operation. In franchising,
this initially consists of two distinct and different business
classifications: (1) sales -- to prospective franchisees, and (2)
operations -- of the franchise units.
This organizational structure may consist simply of a franchisor
with a director of sales and a director of operations.
However, more complex franchising organizations would consist of
the CEO who oversees the operations of sales with operations being
divided into training, products, services,
marketing/advertising/promotion, finance and record keeping.
The franchise system initially is fairly simple but needs to be
divided distinctly between sales to prospective franchisees and
operation development. The person over sales is generally the individual who will recruit and solicit prospective franchisees. They will court, date, and propose to the potential franchisee. If the franchisee is awarded a franchise unit and agrees to the contract conditions, then a marriage date is proposed and everyone comes to the altar. Surprisingly, the franchisee leaves with the operations director and will seldom see the sales director throughout the remainder of their franchising period of time. While every organization whether a family, household, complex
giant corporation, or franchise unit requires organization, the
franchisee also,
to be a success, needs to develop organization relationships to
function effectively. The
organization structure develops a chart that describes the
organizational relationships between individuals within the franchise
unit. This may simply
describe the relationship between the franchisee and one or two
employees. However, this
may also describe the relationship between the franchisee, the managers,
assistant managers, and staff persons.
The
franchisor should develop policies to regulate the activities of the
franchisor organization and also suggests policies to help regulate the
operations of the franchisee organization.
These policies should include the salary and wage structures of
individuals involved. Additionally,
the franchisor should explain the recruiting techniques, job
descriptions and performance evaluations which will be used in the
franchisor headquarter organization, as well as those recommended for
the franchisee organization. The
wage and salary structure should be developed including all benefits and
incentives which may be provided for each organization.
Additionally, internal policies such as sales, employee
grievances, general policies, and financial controls should be developed
for both organizations. Also,
external policies such as credit, checks, layaways, returns, and general
external policies dealing with the customer should be developed for both
the franchisor and franchisee operations.
One
of the most arduous and burdensome tasks of franchising is the
development of a franchisee operations manual.
The franchise operations manual is obtained by the franchisee from the franchisor
on a loan basis. This means
the franchisor is going to have to develop a franchisee operations
manual. The operations
manual should explain how to run every aspect and operation of the
business. This is a time
consuming task and is best handled by those people who are actually
involved in the day-to-day operations of the business.
They should be involved in writing down the details of what they
are doing and how they should best be done.
In
the initial start-up stage of many franchising organizations the
training manual will be the same as the operations manual.
However, as the organization grows, a training manual is
generally developed separately from the operations manual.
The manuals generally explain how much training and what kind of
training the franchisor will offer not just to the franchisee but also
to the franchisee managers, assistant managers, and staff people.
Pert is an acronym for project, evaluation, review, technique. The pert chart is a simple delineated set of related events presented in sequence of their happening. Generally time periods are identified to reflect the time requirements for each activity or event. By identifying all the time required, the franchisor would be able to develop a critical path which allows sufficient time to complete all the tasks of the project. The pert chart is a simple useful tool which the franchisor should use in establishing a franchise unit. These charts illustrate the required steps from the initiation of the franchise idea to the "grand opening" of the first unit by a franchisee. Additional pert
charts can be developed for the prospective franchisee from the time
they are originally contacted to the "grand opening" of their
franchise unit. These two pert charts then allow the franchisor to look at
the various task and time elements required to accomplish all tasks
necessary to start a franchise. The
pert chart is a useful tool for the franchisor and allows them to
determine all steps absolutely essential for the development and
start-up of the franchise system as well as for each and every franchise
unit. By utilizing these
charts the franchisor can follow the development of the franchising
system and the development of each prospective franchise as they
complete the steps required to complete their individual units.
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