Once a franchisee is up and running, the franchisor should support the franchisee in various ways. The exact support services that the franchisor is obligated to give the franchisee, is stipulated in the franchise agreement. Each franchisor must find the correct balance of support services to use.
The first type of support service the franchisor should provide is support staff in the field. Support staff are the franchisee’s first point of contact and act as an intermediary between the franchisor and the franchisee. If the franchisee needs guidance, training, or help to solve a problem, the support staff will assist the franchisee.
However, the franchisee should keep in mind that the franchisor is in a supporting role only, since the business is not owned by the franchisor.
Other types of services may include retraining the franchisee’s staff in new products or services and continuing research and development of new ideas to improve the business. In addition, the franchisee may ask advice from the specialists that work for the franchisor, which may include lawyers, accountants, and advertising representatives.
However, the type of advertising a franchisee may conduct is local only as the franchisor is responsible for advertising the franchise on a national and global scale.
For more information on what types of support services a franchisor should offer, contact franchise attorney Mario Herman.