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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)

    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 originations 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 originations 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

  • 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 its 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 franchisees 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

    investors 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

  • 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.

    REFERENCES

    [1] Dr.Davinder Sharma, Impact Indian Managers in Multinational Companies and Their

    Commitments International Journal of Management (IJM), Volume 1, Issue 2, 2010,

    pp. 141- 155, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

  • 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

    [2] Prof. Mrs. Nandini M.Deshpande, Human Resource Branding- Its Analytical Study on the

    Indian Organizations International Journal of Marketing & Human Resource Management

    (IJMHRM), Volume 1, Issue 1, 2010, pp. 70 - 73, ISSN Print: 0976 6421, ISSN Online:

    0976- 643X.

    [3] Dr.N.Shani, P. Divyapriya, A Role of Innovative Idea Management in Hrm International

    Journal of Management (IJM), Volume 2, Issue 1, 2011, pp. 69 - 78, ISSN Print: 0976-6502,

    ISSN Online: 0976-6510.

    [4] Dr.Amarja Satish Nargunde, The Inevitable Organizational Politics International Journal

    of Marketing & Human Resource Management (IJMHRM), Volume 4, Issue 1, 2013,

    pp. 14 - 20, ISSN Print: 0976 6421, ISSN Online: 0976- 643X.

    [5] Anirudh Prabhu, Aldrin Rodrigues, Chirag Chauhan And G.Anuradha, Novel Approach For

    Predicting The Rise And Fall Of Stock Index For A Specific Company International journal

    of Computer Engineering & Technology (IJCET), Volume 4, Issue 2, 2013, pp. 23 - 30,

    ISSN Print: 0976 6367, ISSN Online: 0976 6375.

    [6] Dr. N. Kannan, A Study on the Growth of Indian Insurance Sector International Journal of

    Management (IJM), Volume 1, Issue 1, 2010, pp. 17 - 32, ISSN Print: 0976-6502,

    ISSN Online: 0976-6510.

    [7] Ms.A.R.Prathipa and Dr. S. Balasubramanian, Ph.D, Analysis Of Patent Intensity Based On

    Gdp Among Saarc Countries International Journal of Management (IJM), Volume 3,

    Issue 3, 2012, pp 25 - 31, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

    [8] Mr. V. Antony Joe Raja, Dr. S. Balasubramanian, Innovative Hr Practices In Software

    Organization International Journal of Management (IJM), Volume 1, Issue 1, 2010,

    pp. 160-166, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

    [9] M.Sudarsan and Ponramalingam, Significance of the Training on Enhancing Effectiveness

    of Communication Skills in the IT Industry International Journal of Management (IJM),

    Volume 4, Issue 4, 2013, pp.1-8, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

    [10] M. Surya Kumar and Dr. N. Shani, Strategic Talent Management International Journal of

    Management (IJM), Volume 3, Issue 3, 2012, pp. 100 - 104, ISSN Print: 0976-6502, ISSN

    Online: 0976-6510.

    [11] Dr. N. Shani, The Role of Employee Engagement and Strategic Tool in Hrm International

    Journal of Management (IJM), Volume 2, Issue 2, 2011, pp. 25 - 32, ISSN Print:

    0976- 6502, ISSN Online: 0976-6510.

    [12] Dr. N. Shani, P. Divyapriya, K. Logeshwari, Human Resource Philosophy International

    Journal of Management (IJM), Volume 2, Issue 1, 2011, pp. 61 - 68, ISSN Print:

    0976- 6502, ISSN Online: 0976-6510.

    [13] M.Sudheer Kumar and Prof. P.Balaji Prasad, Human Resource Management Practices In

    Multinational Companies- A Case Study In Indian It Industry International Journal of

    Management (IJM), Volume 4, Issue 5, 2013, pp. 20 - 32, ISSN Print: 0976-6502,

    ISSN Online: 0976-6510.

    [14] Farouk Saif Yahya Ahmed, Construction Project and Change Order Management:

    Contemporary Affirmation of the Recent Literature and Future Research Directions,

    International Journal of Management (IJM), Volume 4, Issue 3, 2013, pp. 135 - 144,

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

    [15] Smitha Nair and A.Ramachandran, Gap Analysis for Implementing Tqm in Seafood

    Exporting Firms, International Journal of Management (IJM), Volume 4, Issue 4, 2013,

    pp.49 - 59, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

    [16] Nithya Sankar and Dr. S.S. Rau, Managing Emotions To Managing Human Capital

    International Journal of Management (IJM), Volume 2, Issue 2, 2011, pp. 176 - 181,

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

  • 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

    Crises-A Study International Journal of Management (IJM), Volume 3, Issue 3, 2012,

    pp. 139 - 143, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

    [18] Dr. C. Swarnalatha, T.S. Prasanna, Employee Engagement: The Key to Organizational

    Success, International Journal of Management (IJM), Volume 3, Issue 3, 2012,...

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