Being a Franchisor and having a high level of Franchisee Management means not only running your own business, but looking after Franchisees as well. In many cases, Franchises grow to a stage where they employ specialist staff in roles that are focused on looking after and managing Franchisees.
There are many benefits to managing Franchisees effectively. Obviously have a stable Franchisee base means a higher likelihood of stability and success in your franchise. Happy Franchisees, in many cases, buy other franchises and word spreads that your franchise is profitable.
Like happy employees, happy Franchisees make management a great deal easier with fewer issues to deal with and a far better work environment. You will then be able to focus your energy on growing the business rather than putting out fires
Exit Plan
An exit plan is something that needs to be defined before entry. A good franchise agreement, such as the FrankDocs Franchise Agreement has a clearly defined exit plan and takes into consideration most scenarios when exiting is required.
One exit plan is for the Franchisee to sell his franchise and move on. There may be many reasons for this and the Franchise Agreement should allow a clear and easy process for the exit and/or sale and transition to a new Franchisee.
Having a strong and well defined plan means that it is clear to all parties and their respective interested parties such as family, employees and business advisors, what is involved, who is responsible for what and what timeframes things are expected to happen in.
Having a good exit plan is a selling point for your franchise and it demonstrates that you have everyone’s best interests at heart and that you are planning for this eventuality. Franchisees can then operate their business without worrying about the future in this respect and without any thought to any unexpected legal issues.
Succession Plan
You will need a strong succession plan. Most successful business people always ensure that there is someone to step into their shoes and take over the business if, for any reason they are unable to continue on with the business.
This plan normally falls into two categories. Firstly, in the event that a fast transition is required, for example a car accident, where there are immediate steps to be taken to ensure the continuity of the business. The other scenario is where there is a gradual and planed transition, such a scenario would be where you plan to retire and can exit the business slowly and allow those picking up the management tasks to slowly move into the role.
FrankDocs is the premium suppler of Franchise Documents, Legal Documents, Franchise Manuals, Franchise Templates and Franchisee Recruitment Documentation in the UK. Feel free to visit us at www.frankdocs.co.uk or by emailing support@frankdocs.co.uk
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