(FS9) Franchising Research, Development, and Office Support
All great franchisors try to keep ahead of the curve and their competitors when it comes to technology, research, and development (R&D). Part of R&D is to understand the changes in the market, to see opportunity for new products, needs, or services, and to encompass how to fix them through the franchise.
Most franchisors who own a story or two themselves use those stores as testing grounds for the new products they develop through R&D. They watch how those products interact in a small system before they send the new products across the nation and to other franchisees.
Some of the things franchisor do during R&D are:
- Determining inventory requirements
- Determining what equipment is necessary for new products and services or if current equipment is enough
- Developing training material for new products or services
- Examining Other industries for products and services
- Gathering Consumer Information
- Lining up suppliers needed for new products or services
- Planning advertising and promotions
- Seeking franchisee input
- Testing in company-owned franchises
- Testing products and services in the test facilities to determine ease and do-ability of any idea, particularly on a massive scale
- Verifying economic viability
It’s important for any franchisor to continue to research new methods, services, or products available in franchising so that they can offer because the public can get tired of seeing the same thing over and over again, even if they love the product or service. Consumers want to see franchises and brands growing with them, making moves to bring new products and services as a way to thank them for their patronage and loyalty.
Office Support for Franchising
You may find in franchising that not every franchisor handles support the same way. Your royalty check can go towards office support. This isn’t the norm for all franchises and if it’s what you’ll be getting, it should be stated in the franchise agreement of FDD. If this is a must or a deal-breaker for you, you will want to ask questions way before this point.
The office support can come in the form of a help line for you or customer service line that all consumers will be redirected to when they call your number. This service line can answer questions, help with basic information, or forward them to your store for more specific purposes.
Other Perks of Franchising
Your royalty check isn’t the only fee that you may find yourself paying from time to time. Some franchisors offer additional fees for additional a la carte support systems or services. You shouldn’t assume that every type of support is included in your royalty fee. It should be listed what you can expect in the franchisor agreement and/or FDD.
You may have set your expectations based on something you talked about with the salesperson or franchisor you purchased your franchise from. You might also receive more help in the beginning of the franchising processes than you will a year or two (or more) down the line. Remember that if your salesperson or franchisor says something that highly affects the way you feel about the purchasing decision, you should stop and make sure that it is in writing. If it’s not and they do not follow through with the promise later on, it will be hard to prove that it was ever said and find that follow through with your franchise company. It can be a sneaky thing to do or a novice mistake to make, but it can happen. Some salespeople can focus too much on seling and not what they’re giving. With your keen eye and attention to detail, you can prevent these failures or misunderstandings and your franchisor will appreciate it as you failure will always be carried to them and placed on their franchise. So really, it’s in everyone’s best interest to succeed.
Continue Reading the Franchise Series 9 With:
- Fellowship Relationships to Expect in Franchising
- Supporting Changes in Your Franchising System
- Making Changes to Your Franchising Systems
- Building Successful Relationships in Franchising Systems
- Maturing Your Franchising Relationships as Time Passes
- Managing System Size or Focus Changes in Franchising
- Working Your Way Through Conflicts That Occur in Franchising
- Reaching Out to Fellow Franchises for Advice
- Joining Advisory Councils and Associations for Franchises
- Bringing the Best To Your Franchises On Your Own