Monday, November 26, 2007

Franchising - Interesting article on vendors for franchisees

From Franchising World October 2007 comes Partnering franchisees with the right vendor is a winning proposition for everyone by Danny Goldberg.

"Some franchise companies tend to overlook the details that are required to build an effective staff for their franchisees. Their primary focus is on opening the store and helping to sell products or services. Consequently, the employee headaches some new franchisees face may be hidden from view. Is the franchisee complying with labor regulations? Are illegal aliens being hired? What’s happening with the employee payroll?"

In this case, offering pre-screened vendors that remove some of the responsibilities and burdens associated with payroll, human resources and benefits can help franchisees to focus more on enlarging their businesses. This step will help to minimize the frustration these new owners feel when they become overwhelmed by new responsibilities and ensure that the brand’s logo doesn’t disappear from their neighborhood.

As an added benefit to the corporate office, this step also provides a business model that’s easier to implement and manage since nearly all of the franchisees are using the same vendors.


How to Choose the Right Vendor
There are many factors that come into play when choosing the right vendors. Ask questions that will indicate how the relationship with them will be affected by how they conduct business.

Worth reading the whole article.