What are the Roles and Responsibilities in Franchising?
Australia is known as the franchising capital of the world, with more franchise outlets per capita compared to the USA. It has 1200 franchise systems, with a recorded turnover of $173.2 billion in 2022. There are advantages of franchising in Australia for both the franchisor and the franchisee. Nevertheless, both parties involved have a definite set of responsibilities to fulfil towards the continued success of the franchise model. On that note, this blog will shed some light on the roles and responsibilities of the franchisor and the franchise.
What are the Different Roles in Franchising?
There are two critical roles in franchising. One is that of a franchisor, and the other is that of the franchisee.
The franchisor is the brains behind the franchise business model. A franchisor controls how the business will run and holds rights to the name, brand, and business system. The franchisee, on the other hand, pays money to the franchisor to use the business system to offer services or sell products for a designated time. The franchisee must abide by the business rules set by the franchisor. To gain rights for running the franchise, the franchisee has to sign an agreement with the franchisor. The franchise agreement explains what a franchisee can and cannot do when running the outlet.
What is the Role and Responsibility of a Franchisor?
Let's go through the role played by the franchisor and their responsibilities:
- The franchisor is the business advisor and offers ongoing support and training to the franchisee. They will listen and respond to the franchisee's queries, offering essential resources and tools. If the franchisee faces technical issues, they can directly connect with the franchisor.
- The franchisor is responsible for innovating, drafting the franchise business policies, and strategising ways to stay ahead of the market competition. They will design new products/services, monitor industry trends, and create marketing strategies to beat the competition and increase revenue.
- It is essential for the franchise business model to function smoothly without any glitches. The franchisor is responsible for taking care of that.
- The franchisor is responsible for elevating the brand awareness, reputation, and overall development.
What is the Role and Responsibility of a Franchisee?
If you are looking for a franchise business for sale, you should know the responsibilities of a franchisee. Let's take a look:
- As a franchisee, it is essential that you follow the system and operations of the franchise business model. Trust is imperative in a franchisee-franchisor relationship. It lays a strong foundation for both parties, enabling them to succeed and grow the business.
- The franchisor might provide the franchisee with ongoing support and training, but the franchisee will take care of the business and ensure that it makes a profit. Owning a franchise and ensuring it runs smoothly falls upon the franchisee.
- The franchisee is responsible for upholding the brand image of the franchise business. They must employ marketing tactics to improve brand awareness, especially to capture the local market.
Concluding Note
I hope this blog was able to draw a clear picture describing the roles and responsibilities of a franchisee and a franchisor. If you are planning on buying a franchise in Australia, this blog should give you a basic idea of what your job would entail. To know more about the franchises for sale, subscribe to https://www.businessfranchiseaustralia.com.au/.