A franchise is a joint venture between the franchisor and its franchisees, so scheduling regular meetings to discuss ongoing activity, business performance and issues is an important part of the business structure.
Franchise meetings can be on a more regular basis such as weekly remote sessions, or on a slightly longer timeline such as monthly or quarterly in the form of a more formalised event. If the meeting is in a convention or conference-type setting, it is important that attendance is prioritised and franchisees are easily identified via lanyards or by purchasing name tags in Australia.
In this article we cover what benefits can come from holding franchise meetings – but first, what exactly is a franchise business?
What is a franchise business?
A franchise is a type of licence that allows franchisees access to the franchisor’s business knowledge, processes and trademarks, allowing them to sell a product or service under the franchisor’s business name. A franchisee will usually pay the franchisor an initial “start-up” or “joining” fee and ongoing, annual fees to retain the licence.
A franchise system normally arises when a business wants to increase its market share or geographical reach at a lower cost. Franchises are a popular and ‘easy’ way for budding entrepreneurs to start a business that already has the operating processes, marketing, suppliers and systems in place.
There are several benefits to operating under a franchise banner;
⦁ Business assistance. In most cases, franchisees are provided with the brand, equipment, supplies and marketing plan ready and raring to go – reducing the time and effort it takes to launch. Some franchisors operate larger head offices that provide further resources to franchisees.
⦁ Brand recognition. Building brand recognition is often the most difficult part of starting a new business. Buying into a franchise guarantees instant brand recognition and likely an established customer base.
⦁ A lower failure rate. Generally, franchises have a lower failure rate when compared to independent businesses. When a franchisee joins a franchise, they are buying into a successful brand with a proven formula that offers support and advice, reducing the likelihood of going out of business.
⦁ Higher profits. With a recognisable brand, a pre-existing customer base and a proven offering, franchise businesses are popular which generally results in less risk and higher profits.
⦁ Greater buying power. A larger network of franchisees has the potential to purchase products or supplies at a greater discount by buying in bulk. The franchisor can also use the size of the network to negotiate other deals with suppliers that would otherwise not be possible with a standalone business.
Why are franchise meetings important?
Franchise meetings are an important communication tool between franchisee and franchisor which can help drive success for the overall business. There are a few key reasons franchise meetings are an important fixture in the calendar.
Communication of changes and improvements in franchise systems
Franchisors hold the business knowledge needed to be successful and strive every day to make improvements and optimisations to the business model. Franchisee meetings are the perfect forum to communicate these changes en masse and provide an opportunity for franchisees to ask questions or request clarification.
Alignment on the direction of the business
Constant review of the position of a business in the market and against competitors is part of a franchisor’s role, as is deciding the overall direction of the organisation. To ensure the franchisor and franchisees are on the same page and everyone is working towards the same targets and goals, this must be communicated regularly – and franchise meetings offer the perfect opportunity to do so.
Opportunity for franchisees to voice their thoughts
Issues arise in every business, and franchise meetings allow franchisees to voice their concerns, thoughts, or issues to the broader organisation. Solutions can then be provided or problem-solving exercises conducted to assist the franchisee if they are experiencing an issue, and these solutions are shared amongst the entire network.
Creates a sense of community
Frequent franchise meetings help foster a sense of community among the entire franchise network. This is particularly useful for larger franchises or when franchise locations are relatively far apart and do not have much contact with each other beyond the meetings. If a community vibe is created, franchisees are likely to feel more invested in the success of the franchise as a whole, rather than solely their own business.
