There are a number of characteristics that franchisors look for in their candidates. I have laid out few pointers to consider but is not limited to just these as you can always be innovative and come up with new ideas to run a successful retail franchisee.
Paying Royalty on Time
After a franchiser has collected the franchise fees (which is normally used in site selection, training payment, support and opening), they make money by taking a certain percentage of every month’s sales, mostly 5-8%. If the franchise was an entertainment spot, royalty is usually the membership dues. If you do not pay franchise distributors on a regular basis, you may end up risking your right to manage the franchise.
Franchisee operations are also responsible for everything that takes place at the retail. It is therefore important to come up with rules, values and offer training to people who work in the retail. Since you lead by example, you will be the one to set the pace for both your employees and customers. As much as you may hire a manager, you will still be responsible for the operation of the store.
For both your employees and customers, you will be the one responsible for making them feel at home. This does not only make you feel like a leader, but it is also one of the advantages of franchising. Employers working in the retail are probably young individuals who have very little experience. This means that you will be the one to offer guidance, training and correct them where necessary. They also need to know that you value them by recognizing what they contribute to your retail establishment. This also applies to your customers. Remember that customers are always the backbone of any business and without them, the business cannot operate. You, therefore, need to try as much as possible to make them feel valued and comfortable to seek your services.
While FMCG franchise may be termed as a ‘business in a box’, the business customers are never included. You need to find them for yourself, and should also be prepared for the high competition from other businesses. Even if the franchiser will be there for the brand opening, you will be the one responsible for the retail performance.
In your marketing strategies for the business opportunity in Indore, you also need to make the business known through joining business groups available in the region. This will guarantee you the highest success. Supporting the local community can also come in handy and besides, you also need to instill value in your retail employees.