Transcript
Page 1: International Journal of Marketing and Human … Journal of Marketing and Human ... Volume 1, Issue 1, 2010 ... “A Study on the Growth of Indian Insurance Sector” International

International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 –

6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 3, September – December (2013)

1

SIGNIFICANCE OF A FRANCHISE MANAGER IN A FRANCHISING

COMPANY

Mr. Chackochen Mathai,

Ph.D Scholar

School of Management Hindustan University, Chennai

Dr.Pon.Ramalingam

Professor & Registrar Hindustan University, Chennai

ABSTRACT

Franchise managers organize and plan the franchising department of an organization. The

manager ensures that franchisees receive the origination’s message regarding business strategy,

promotions and products. A franchise manager offers support to franchisees, which ensures the

overall success of the organization. Franchise manager is also responsible for all new renewals and

license enforcement. He is responsible for franchise contracts with franchise stores to ensure

participation; Maintaining the company guidelines and cooperation in company values and agendas.

The Franchise manager is the face of the organization and this manager should be empathic to the

investor who is seeking an opportunity to become an entrepreneur by investing his hard earned

money in a product or services franchise. Therefore the responsibility of the franchise manager to the

highest order is to help the entrepreneur to choose the right franchised business. The present study is

to find out the significance of a franchise manager in a franchising company. The conclusion will be

given.

Key words: Franchise Managers, Franchising Company, Significance of Franchise Manager.

INTRODUCTION

Franchise managers organize and plan the franchising department of an organization. The

manager ensures that franchisees receive the origination’s message regarding business strategy,

promotions and products. A franchise manager offers support to franchisees, which ensures the

overall success of the organization. Franchise manager is also responsible for all new renewals and

INTERNATIONAL JOURNAL OF MARKETING AND HUMAN

RESOURCE MANAGEMENT (IJMHRM)

ISSN 0976 – 6421 (Print)

ISSN 0976 – 643X (Online)

Volume 4, Issue 3, September - December (2013), pp. 01-05 © IAEME: www.iaeme.com/ijmhrm.asp

Journal Impact Factor (2013): 4.6901 (Calculated by GISI) www.jifactor.com

IJMHRM

© I A E M E

Page 2: International Journal of Marketing and Human … Journal of Marketing and Human ... Volume 1, Issue 1, 2010 ... “A Study on the Growth of Indian Insurance Sector” International

International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 –

6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 3, September – December (2013)

2

license enforcement. He is responsible for franchise contracts with franchise stores to ensure

participation; Maintaining the company guidelines and cooperation in company values and agendas.

The Franchise manager is the face of the organization and this manager should be empathic

to the investor who is seeking an opportunity to become an entrepreneur by investing his hard earned

money in a product or services franchise. Therefore the responsibility of the franchise manager to the

highest order is to help the entrepreneur to choose the right franchised business. He should not sell a

franchise for the sake of targets. The franchise manager should also be responsible to the franchisor

by selecting the right investor for the brand. Valuating the investor before making him an

entrepreneur seriously lies with the franchise manager. The skills of the Franchise Managers should

be of a high calibre where he needs to know a bit of psychology to assess the investor and his

seriousness in the business.

OBJECTIVES OF THE STUDY

� To find out the significance of a franchise manager in a franchising company.

DISCUSSION

Today there are many investors with free money in their hand and wants to invest the same

on some business for their spouse who is sitting ideal, or a brother/sister who has not found a job

etc., but the person coming to take a franchise is a well learned person who is clear with his

intentions to help either his spouse, brother or a relative and make them successful. But the fact is

that if the franchise manager gets carried away by the looks and the knowledge of the investor

without figuring out who is going to run the business, then it’s a bad choice of a franchisee.

However if you see many franchising businesses fail because the investor acts only as an

investor and does not run the business. This not only affects the investor but it affects the brand too. I

strongly feel the selection of the franchisee should have solid process to scrutinize the investor which

will result in both the franchisor and the franchisee’s benefit in the long run. The franchise manager

is like a middle man, in the alliance seeking activity for a man and woman to be wedded. All facts

need to be laid on the table before marrying the franchisor and the franchisee. The franchise manager

needs to be honest to himself and the organization that he works for and needs to rise above all

relations to be a thorough professional to help both the franchisor and the franchisee succeed in their

business objectives.

The franchise manager needs to lay all the facts without any hidden agenda to the franchisee

and should not promise the moon. Explain both the pros and the cons and help the investor to take

the right decision. Once the investor who has the option to take any franchised business needs to take

a well informed decision and since the franchise manager has been honest in his dealing to close a

sale, the investor will decide mostly keeping in mind the returns that he will get as well as think of

what the franchisor will do to help his business as a franchisee. He will remember all that the

franchisee manager had stated and he will take the final decision. A franchise manager is one who

helps the investor take the right decision for his venture.

Talking about the skill of good franchisee manager, he should first put himself in the

investor’s shoes and think if he was taking a franchised business what will he expect from the

franchisor and if he is convinced of the offer will he invest and buy the franchise. If he puts himself

in that position and sells the opportunity, he will make the right choices of selecting the right

franchisee by assessing the attitude and the financial capability to invest in the business, before

signing up.

If the manager believes in his organizational capability to deliver what is promised when he

is signing the agreement, then he will be confident to sell the concept to the franchisee with high

Page 3: International Journal of Marketing and Human … Journal of Marketing and Human ... Volume 1, Issue 1, 2010 ... “A Study on the Growth of Indian Insurance Sector” International

International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 –

6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 3, September – December (2013)

3

confidence and motivation. Therefore empathy, communication skills, business acumen,

coordinating skills, projects handling, event organizing capacity, operational skills, branding,

training, marketing and PR skills are important for a good and efficient franchise manager. Beyond

that he needs to have the grace to build a long term relationship with the franchisee. Many

organization makes their franchise mangers to cut the relation off and transfer the job to the next set

of people who have never built a relationship in the initial stages and many managers do not even

pick their calls after the sales is over. This will not help a good franchisee-franchisor relationship in

the long run.

A franchise manager is one who is a bridge between the franchisor and the franchisee. The

manager understands both parties well and their intentions and should work towards the success of

both parties. It should always be a win-win situation. The manager should look at the franchisee as a

customer; therefore any decision taken should be in this line, benefit to the customer and profit to the

organization that he works for. If this concept is clear in the minds of the manager the relationship

will be rock solid.

A franchise manager is one who will be communicating the organizational strategy to the

franchisee and handholding him to success. He should understand the pain and the emotions of the

investor to negotiate with the organization to ensure that the franchisee is successful by providing

adequate help in the start-up stage of the business. The success of the franchisor is rated in the

success of the franchisee. Therefore helping the franchisee being successful is the key to the success

of a franchisor and the franchise manager.

The franchise manager needs to look at the profit and loss account of the franchisee and

suggests various marketing activities along with the marketing team. He has the moral responsibility

to help the franchisee since he sold the brand; he is also responsible for all the training needs of the

franchisee. He needs to understand what kind of training requirements for the staff and also for the

franchisee. Since he would know while signing the agreement the background of these franchisees,

all of them will not have all the required skills like marketing, finance, human resource, projects etc,

understanding the need the franchise manager should organise for the training to help the franchisee

to be a better entrepreneur to run the brand.

CONCLUSION

In a nut shell, the franchise manager is one who ensures a smooth transaction with the

franchisor and the franchisee ensuring all payments being collected to ensure a good relationship is

being maintained. The franchise manager should be loyal to the organisation that he works for and is

a key person to build the brand along with the marketing or the brand manager based on the feedback

received from the consumer and the franchisee. The franchisee manager is an important person in the

franchising business, both for the franchisor and the franchisee. In the current scenario there are not

many who are looking at the benefit of the both the parties they look at their own benefit; finally the

brand and the franchisees suffer. Therefore being an honest manager with high integrity will take

him to places and he will be able to build brand. A franchisee manager should be part of the system

for a longer period of time to establish stability to the organisation. That will ensure brand stability

too.

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Page 4: International Journal of Marketing and Human … Journal of Marketing and Human ... Volume 1, Issue 1, 2010 ... “A Study on the Growth of Indian Insurance Sector” International

International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 –

6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 3, September – December (2013)

4

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International Journal of Marketing and Human Resource Management (IJMHRM), ISSN 0976 –

6421 (Print), ISSN 0976 – 643X (Online), Volume 4, Issue 3, September – December (2013)

5

[17] Dr N Sathoshkumar and S.Arunkumar, “Challenges Of Managing Mnc Expatriates Through

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ISSN Print: 0976-6502, ISSN Online: 0976-6510.


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