Franchising – A Difficult Task for the Franchisor
Many people would opt to be the franchisor if they were to engage in the business of franchising. Most of them have the notion that the franchisees do all the management and supervision of the franchise business, while the franchisor just sit back and enjoy generating profits from it. They think that the one’s franchising the business automatically fattens his or her bank account with much ease and no hassle. For them, the franchisor greatly benefits from franchising than the franchisees do. That’s why it’s not uncommon for the former to be often desired than the latter. Many people share the same conclusion that the franchisor is the one that is in the winnable position in the franchising business.
If you also think so, then better think twice, most especially if you’re planning to become a franchisor. You must quite know what you’re getting yourself into. It’s not all rosy in the garden as there are certainly nerve-wracking problems, risky disadvantages, and hard obligations that trouble the franchisor. Franchising a business may not be completely easy as it looks and utterly simple as you think.
The franchisor got more problems concerning the franchisees than the latter got with the former. Erlinda S. Bartolome, Managing Director of GMB Franchise Developers, in an article she wrote for Entrepreneur Philippines January-February 2007 issue, mentions the different problems that occur in the franchisor-franchisee relationship. Most often, it is the franchisor that is greatly affected. Since franchisees join in the franchise network with their own unique business experience, expertise, and outlook, they will often have their own way and will not follow the business system of the franchise. While the franchisor will typically make decisions that take the entire franchise system into account, the franchisees typically will assess the benefits of such decisions only in relation to their franchised business....