What does a franchisor bring to the table when you agree to join?

You know what you bring to the table when you agree to join a franchise. You bring your enthusiasm, your entrepreneurial spirit, your experience, your expertise and hopefully some funding.

But, what does the franchisor bring to the table?

You have to pay a franchising fee and ongoing royalties to this organization, so you should be getting something good in return.

And you do.

Here is, according to the Government of Canada, what a franchisor brings to the table when you agree to join.


First and foremost, the franchisor brings the actual idea itself, saving you the hassle of having to think up a business idea and decide how you’re going to position your brand in the marketplace and differentiate it from the numerous competitors out there.


The franchisor will help you get started. Many franchises will have data about where their brand would do well based on demographic studies of neighbourhoods. They’ll guide you through the process of finding a suitable location and will offer support for the lease or construction of a building.

The franchisor has ultimate say over a location. Even if you believe you’ve found the perfect spot, the franchisor may veto it if they are not satisfied with the location you’ve picked. However, the franchisor will have good reason for saying no to a spot and will likely tell you why it was rejected.

They will also help you with leasing equipment, training you, your managers and your staff and getting ready for and executing your grand opening.

Bulk Purchasing Power

The more you buy of something, the cheaper it gets and franchisors use this concept to franchisees’ benefit by purchasing supplies in bulk. You’re not left on your own to negotiate deals with suppliers. The franchisor will do that for you.

Brand Recognition

The mother of all benefits when joining a franchise, brand recognition benefits all franchisees. Familiarity and trust are extremely important in business and when customers see a brand they recognize and have had good experiences with in the past, they’ll go to that brand again, even if it is a completely different location.

Supply Chain

When you start a business from scratch, you have to figure out how you will get your supplies, when to order those supplies and many other elements of setting up an effective supply chain. But, when you join a franchise, that supply chain is already established and many franchisors offer business coaching to their franchisees so they know when to make decisions like reordering supplies.


Since the brand is a known commodity, it will already have loyal customers in place. People travelling from one area to another will be drawn in when they see a brand they are already fans of and will patronize that business even if they haven’t been to that specific location yet. All franchisees benefit from the goodwill the brand has developed with its loyal customer base.


Buying into a franchise may not give you instant profitability, but it does increase the chances of your business becoming profitable and successful and hastens that whole process. Everything in a franchise is set up to ensure franchisees can be as successful as possible so the franchise as a whole can be as successful as possible.

Business Model

The reason all franchises are run the same way is because they are using a proven business model. This is what makes it easier for them to become profitable. The franchisor has already worked out all the kinks in the model and has it running smoothly by the time franchisees come aboard. It’s worth noting that this means franchisees have less flexibility when running the business, although many franchisors are open to new suggestions.

With all that and all that you bring to the table, it’s no wonder franchises are set to succeed. If you are ready to try franchising, FranNet can help. Sign up for a free FranNet franchise search and consultation today.

Jul 21, 2018