The relationship between the Franchisor and their Franchise
Partners is unique and often complex. Crucial to the evaluation of
any franchise concept is a thorough understanding of the roles of
each, the Franchisor and the Franchisee.
The following is a general overview of the roles and
responsibilities of both sides.
Key responsibilities and role of a Franchisor includes:
- Proven Operating System: Providing the
Franchise Partner with a proven operating systems and on-going
support to help their businesses grow effectively, efficiently and
profitably. This includes creating comprehensive initial and
on-going training programs as well as documented “day-to-day”
- On-going Innovation: Evolving the franchise
system through research, innovation, and the development of new
products and services is important to maintaining relevancy. The
Franchisor needs to be a subject matter expert in their field and
be able to identify any trends within their industry and ultimately
how they can implement and adapt their system accordingly.
- Brand Awareness: Brand awareness marketing
falls under the Franchisor’s responsibilities and is focused on
increasing the general awareness and recognition of the brand by
customers. The focus of brand awareness identifies what
differentiates the brand from competing good and services. Brand
awareness often includes managing the digital brand and reputation
as well as incorporating new branding opportunities within the
- Brand Asset Management: Protecting and
managing the brand and its trademarks while ensuring consistency
and quality standards are maintained by all Franchise Partners in
the system. It may also include providing tools to manage
compliance and adherence to standards of the brand within each
- On-Going Performance Improvement: Provide
initial and ongoing training and support which demonstrates the
franchisor’s commitment the success of the Franchise Partner.
Programs designed to manage and improve unit performance could be
included in this area.
The key responsibilities and role of a Franchise Partner
- Follow the System: Commit to following the
franchisor’s standard of operations, methods, procedures,
techniques and specifications to ensure consistency during each
customer interaction. Adhering to the Franchisor’s proven operating
system is often crucial for success and is often why someone might
opt for a franchise versus starting their own business from the
- Fee Remittance: On a regularly scheduled
basis, the Franchise Partner remits a fee (i.e. initial Franchise
fee and ongoing royalties) to the franchisor for the right to use
the franchisor’s trademarks (brand) and business system.
- Manage Local Operations: Taking care of the
day to day business operations is the role of the Franchise
Partner. This includes accounting, local marketing, staffing and
the other administrative aspects of operating a business. Keep in
mind that the Franchisor has often provided tools and resources as
part of their operating system.
- Committed to OWN Success: Franchise Partners
must be ready to invest and commit their time and efforts to their
franchise business, particularly during the start-up phase and this
often includes working hands-on in their business, in order to
fully understand the operational side of the franchise.
- Engage in Local Marketing: Marketing the brand
in the local vicinity/territory is generally the responsibility of
the Franchise Partner. The Franchisor often provides guidance in
this area and approval of marketing material may be required,
however local execution is the role of the Franchise Partner.
The underlying success of any franchise organization depends
upon the ability to manage expectations of both the Franchisor and
their respective Franchise Partners. An understanding of “who does
what” is an important part of the due diligence process; make sure
you have a clear understanding before you sign on the dotted
Learn more about franchise business opportunities in Canada at
Be The Boss.