Te association between a franchise company and its franchisees is often compared to a family relationship. The franchisee looks to the franchise system for all the training, knowledge and support it can possibly give.
New franchisees need a community of laborers and experts of sorts, to help them expand. In the business world, this community represents the vendors that supply the ancillary products and services that help make a company run smoothly.
The Little Things
New franchisee owners need and want more than just a star product or fancy commercial. In many instances, most of a franchisee's needs translate to all the little details that keep business owners from becoming overwhelmed. This is especially true with franchisees' largest need and expense: their employees.
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.
Big Vendor versus Local Vendor
Most vendor options will either fit into a big, national vendor or a local vendor category. The big vendors are the companies with expansive buildings and manicured lawns. If one visits them, he may not even get a hint from where their products or services come. In many cases, the representative who calls on the client is a clean-cut kid fresh out of college. These are the representatives who wine and dine prospective customers and offer them everything they could possibly need for their new business. Potential customers are dazzled and stunned by their pitch. One quickly signs on the dotted line and one of two...