Updated June 2024
To create a viable franchise, a franchisor must first develop the infrastructure for the entire franchise business, which ultimately impacts each franchisee. The foundation of this infrastructure consists of a strong support team. Various members of the support team will ensure that every aspect of the franchise is on the right track. There are many gaps to fill when it comes to creating a successful franchise system, and some of the roles needed include:
- Franchise development consultant
- Franchise lawyer
- Franchise accountant
- Real estate experts
- Website developers
- Marketing experts
- And more
Without an effective support system, a company that is trying to franchise will likely find itself without adequate resources to support all its franchisees, which is a lose-lose for everyone involved.
A Strong Franchise Support Team Promotes Success
Everyone involved in a franchise relationship benefits when the entire franchise system is successful. A strong franchise support team is foundational to a franchise’s success. Here are a few examples that illustrate this.
Provides Reliable Support for Franchisees
A company that begins franchising might start off strong, but if it fails to consider and account for all the costs involved in the long-term, then a lack of funds will lead to things crumbling. The franchisor won’t be able to provide the support promised to its franchisees, and the franchise system won’t be able to continue.
Avoids Legal Complications
There are various state and federal regulations that impact franchising. A company that starts to franchise must ensure they comply with these laws in order to succeed. For example, a franchise system might fail if the franchise has to refund several franchisees their investment due to improper disclosure or some other legal violation.
Keeps Franchisees Satisfied
A franchise would not be successful if the majority of its franchisees decided not to renew their franchise agreements. However, an effective franchise support team will help franchisees feel supported and valued, and satisfied franchisees are likely to remain with the franchise system and contribute to building a strong brand.
Qualifications of Support Team Members
It goes without saying that all support team members should be experts in their fields. However, it’s just as important that these team members have franchising experience. Franchise-specific experience is necessary so that each member can provide accurate information regarding franchising and reliable guidance to businesses seeking to become a franchise.
Key Positions in a Franchise Support Team
Franchise Development Consultant
When a business is getting started in franchising, the need for a franchise development consultant is obvious. This person will walk a company through the steps of becoming a franchise. A consultant will assist with the following:
- Evaluate whether or not the business is a good fit for franchising.
- Determine what the total cost might be.
- Doing market research so the business can differentiate from other brands in the market.
- Helping the business develop their brand.
- Creating a profile for ideal franchisees and helping find qualified candidates.
- Establishing a franchisee application process.
- Recommending other professionals and developing a franchisee support system.
- Defining systems to ensure brand consistency.
- Preparing operation manuals for the franchise.
- Determining a staffing structure as the franchise expands.
A franchise development consultant will help with these aspects and whatever else is needed to get a company started as a franchise. This is a foundational role, and it should be the first person a business looks for when creating a franchise support team.
Franchise Lawyer
A franchise lawyer will help a company with the legal requirements of franchising. Laws related to business are in constant flux, and having an attorney on board will ensure compliance with those laws. Aspects a lawyer will help with include:
- Registration of trademarks.
- Creation of a corporate structure.
- Development of a franchise agreement.
- Writing disclosure documents so they meet regulatory requirements.
- Giving a summary of other laws and licensing requirements the franchisor and franchisees need to be aware of.
- Creating documents like confidentiality, non-compete, employment, sublease agreements, and other documents pertaining to the franchise.
Franchise Accountant
An accountant with franchise-specific experience is pivotal to helping a business become a franchise. A few ways a franchise accountant will help include:
- Preparing financial models to determine the initial franchising fee.
- Helping prepare a business plan to ensure sufficient funding.
- Outlining the best corporate structure to minimize a company’s tax burden.
- Creating a financial control system to facilitate things like royalty payments.
- Developing a standardized chart of accounts for franchisees.
Other Team Members
Additional team members important to franchising include:
- A real estate expert to help franchisees find locations.
- An advertising firm to help develop branding materials.
- A public relations firm to help generate brand awareness.
- A banker to help with financing.
- A web development firm to help create websites for the franchisor and franchisees.
Clearly, franchising is not a one-man team. It takes the effort of various franchising experts to create a successful franchise business.
Ready to Join a Franchise with a Strong Support Team?
If you’re looking to join a franchise with a strong support team, then FranNet is here to help. We’re connected with hundreds of verified brands with established support teams and a track record of success. In the same way that FranNet connects these franchises with prospective franchisees, our franchise consultants are able to match you with the best franchise opportunity. All of this is at no cost to you. Schedule your free consultation to get started!