The franchisor is providing a structure for the franchisee to follow, yet its up to the franchisee to take responsibility for his or her business growth and success.

1. ADVANTAGE OF

2. What is franchise ?
Franchise is the practice of the right to use a firm's business
model and brand for a prescribed period of time.

3. Franchisee-Franchisor Relationship

4. The relationship between a franchisee and a franchisor is a unique one. It is
often seen that franchising is described as a parent/child relationship, with the
franchisor acting as a parent offering guidance and direction and willing the
franchisee to succeed.
While this is true, it can be a little misleading too because that comparison
categorises the franchisee into a secondary role. The franchisor is
providing a structure for the franchisee to follow, yet it’s up to the franchisee
to take responsibility for his or her busiThe franchisor will not jeopardise the
greatness growth and success.
er good of the entire franchise system to see one franchisee succeed,
especially if that franchisee is on a path that does not adhere to the one laid
out by the franchisor. Each franchisee need to understand that he is an
independent business owner. And it’s the efforts of the franchisee that will
ultimately determine whether he or she succeeds or fails.
There can be a lot of discontent in a franchise relationship due to
miscommunication, false expectations, or lack of involvement. If each side
does its part, the relationship can be a long and healthy one and can even
take the franchise owner from a single-unit owner to multi-unit powerhouse.

5. Keys to a Strong Bond between Franchisee and Franchisor

6. The world of franchising is an attractive business model to follow because it offers a
proven system with tangible results already in place. It appears to be a “plug and
play” scenario where one simply has to add themselves to the system and get
success. But like any business, it’s not that simple. So it’s important that a franchise
and a franchisor develop a healthy relationship and take it to the next level. There is
a lot at stake on each side of the relationship. So let’s take a look at the top five
keys to building a healthy, successful and long-term franchisee/franchisor
relationship:
• Research Properly
Franchisors should go thoroughly and research every serious prospective
franchisee and scrutinise personal and financial backgrounds. They should carefully
evaluate each candidate’s potential for success in their system. Similarly
franchisees too need to research about the franchise opportunity. They can start
with a search online, spend time researching the company, and then talk to existing
franchise owners, go on a site visit etc.
• Communicate
In a franchisee/franchisor relationship, communication is key to success. This is
about sharing ideas and best practices and having a method for feedback and input.
It is having the tools to allow the franchisor to communicate with the franchisee and
for the franchisee to provide feedback.

7. • Right tools to Succeed
Since franchisees are buying into a successful business model, it is important that
they have the proper tools and systems to replicate that success. This will include
things like: an initial training program, training manuals and franchise support
materials, equipment, guidance on staff training and hiring, access to the advertising
and marketing programs and materials
• Be Responsible
A franchise-franchisor relationship will be strong when each side fulfills their
responsibilities. While the franchisor must provide each franchisee with the
necessary systems, materials and training to succeed, a franchisee needs to follow
the outlined systems and training and adhere to operational standards of the
franchisor.
• Plan things well
The good thing with a franchise model is that the franchisor has already done the
groundwork, testing and experimenting to build a successful business model. The
company has developed standards that define its brand to the public and has put
systems in place to ensure that those standards are met and adhered to by each
franchise owner. Now it is important that the franchisees plan things well and don’t
rush for success.

8. Questions Every Franchisee Should Ask before Investing

9. The franchise industry in Delhi-NCR is on a roll. Be it quick-service restaurant chains
like McDonald’s or KFC or salon chains like Lakme, Looks or Monsoon Salon & Spa,
there is a sudden demand, with a host of new franchises being formed. As with any
other investment, the burden is on you to research a franchise carefully. Here are few
questions you should ask before buying a franchise, even an established one. Don’t
be afraid to ask about the franchise’s plans:
• Are they planning to open company-owned stores as opposed to franchise outlets?
Make sure they can’t put a company-owned store in your territory.
• Will they solicit customers directly via the Internet or a toll-free telephone number?
Make sure the franchise will pass on to you any inquiries they may receive directly
from customers in your territory.
• Will they offer new products and services through a separate, related franchise
under a different trademark?

10. Responsibilities of Franchisee and Franchisor

11. A franchisee and franchisor share a very cordial relation with each other. To
give a definition, a franchise is an investment in which you pay another
business and gain right to use its business model and products. A franchisor is
the party granting the right, and the franchisee is the party buying the right. So
let’s take a look at the responsibilities these entities have to maintain a cordial
business model.
Franchisor Responsibilities
• The franchisor typically helps a new franchisee get off the ground, providing
advice concerning location, setup, equipment, staffing, supply sourcing,
advertising, staff training, etc.
• The franchisor also gives you required training you need to carry out the day
to day work.
• He guides you through various facets of the business and helps you with his
experience in the field.
• The franchisor also helps you through large-scale advertising campaigns.

12. Franchisee Responsibilities
• The franchisee pays the franchisor a startup fee and may be a percentage of
future gross revenues.
• The franchisee also follows certain rules set by the franchisor with regard to the
business.
• he franchisee also need to maintain certain quality standards, keep prices in
line with the franchisor’s overall business strategy.

13. Looking for the Best Franchise? Here’s what you Need to Know

14. At a time when individual opinions carry more weight because of social media and
the power of the Internet and when information itself is has become a common
commodity, we often tend to get confused when it comes to investing in property or
business. And more often than make the wrong decision.
So before investing in a business opportunity, it’s important that one understands and
measures the opportunity rightly. Be it the quality of the brand or its performance in
recent time, here are few steps or measures one should keep in mind before
investing.
• Quality of End-consumer Product or Service
In this age of opportunities, one should always remember that customers are never
bereft of choices. They can easily move on to some other brand if not satisfied.
Therefore, the end-consumer product or service becomes very important for a
franchisee to look for before investing.
• Quality of the Franchise System and Mechanisms
It is important that the franchisee you are looking to invest has a transparent system
in place. This will help keep all the transactions open to the franchisee and the
franchisor, invoking more trust among each other.
• Quality of the Franchisor
You should also know how the franchisor deals with the commitments made. Are they
having good leadership skills? Will they provide the needed support? These are few
questions that should be clear before signing the agreement.

15. 5 Mistakes New Franchisees Make

16. We have already discussed some of the common mistakes people make when
buying a franchise. Opening a franchise may seem like a simple way to run your own
business. But rarely is business simple. Whether you’re looking to open a fast food
joint, a gym or even a salon, below are a few nuggets of wisdom to contemplate
before taking the plunge.
• Don’t buy a franchise to ‘be your own boss’
Franchising is based on conformity and uniformity. As a franchisee, you do not really
hold the reins. You may technically be the boss of your shop, but you must follow the
rules of the franchisor.
• Understand that franchisors can succeed even if franchisees fail
Though it’s true that the franchisor can make more money if its various locations do
well, they can rake in plenty even when they’re not.
• Imagine failing
It takes confidence and enthusiasm to startup your own business, even if it is an
established franchise. Keeping your hopes up can lead to setting aside the idea that
you could fail. Do not do that.
• Consider doing it yourself
How much are you really getting from a larger franchise organisation? Is it worth the
monthly payments to the franchisor? A lot of franchisees come to feel that it isn’t but
the reality is the opposite.

17. • Imagine failing
It takes confidence and enthusiasm to startup your own business, even if it is an
established franchise. Keeping your hopes up can lead to setting aside the idea that
you could fail. Do not do that.

18. 5 Characteristics of Successful Franchisees

19. It is often seen that people are confused before buying a franchise. And the most
common confusion that they have in mind is what it takes to succeed as a franchisee.
What are some of the characteristics or skills that he/she needs to increase his/her
chances of success?
This is a right question, and one of the most important things to focus on as you
contemplate a move into franchising. There are five key characteristics that can
determine your success as a franchisee. They are:
Risk Aversion: Many people think that to succeed as a franchisee, you need to be a
gambler. However, that’s not the case. It’s a proven model and success will come
soon.
System Orientation: Don’t shy away from franchising because you assume you
need a burning entrepreneurial spirit to become a franchisee. That’s simply not true.
Coachability: The motto of franchising is ‘Business for yourself, but not by yourself’.
Successful franchisees learn from others in their franchise system.
Hard-worker: Successful franchisees have a willingness to do whatever it takes to
get the job done.

20. Management Skills: Successful franchisees always have excellent interpersonal
skills and can effectively interact with their employees and customers.

21. How to Succeed as a Franchise Owner?

22. While franchising’s prevalence in the Indian economy indicates that franchisees can
succeed, hundreds of franchisees fail each year. And the most frequent reasons for
their fall is lack of funds, poor people skills, reluctance to follow the formula, a
mismatch between franchisee and the business and poor management. Often, it’s
the small stuff that separates winners from losers.
Among the most common mistakes new franchisees make is signing on before
adequately researching the business. Study what it will take to run the business
successfully. And be realistic. Owning a franchise is rarely a get-rich-quick scheme.
Choosing the right business to own from the start is enormous. Do your research,
call all the franchisees, understand the investment, dig in to all the information you
can, and be sure. Make sure you have buy-in from people who will affect your
success (husband, wife, partner, etc.). Choose the business you can commit time to
building, be a passionate, engaged operator, follow the path laid out for you and
make your dreams of ownership successful.
Don’t forget: You have to follow the rules, too. Franchises aren’t designed for the
independent-minded. They depend on a by-the-book execution of a business plan,
adherence to time-tested systems and a willingness to follow directions.

23. For more information visit :
https://www.monsoonsalon.com/franchise/