Franchisors operate in a range of industries, and even those within the same sector can pursue a different strategic approach. That legitimately means the exact Franchise Support Office structure for one organisation may well differ from that of a direct competitor (of a similar size) – and for good reason.
Notwithstanding, we know from our work planning, reviewing and improving many franchisor companies, of all different sizes and backgrounds, that there can be a gap between a franchisor’s situation and plans, and the structure and operations of the Franchise Support Office team.
Put simply, the Franchise Support Office team needs to be big enough and there needs to be a clear delegation and delineation of roles and responsibilities among able team members. There are sometimes room for improvements.
As a franchisor, there are numerous activities that need to be completed in addition to those associated with running a conventional business. These functions and franchise-specific activities typically fall under the following types of headings:
- Strategy
- Operations
- Franchise support
- Communication
- Finance
- Technology
- Property
- Procurement
- Marketing
There are more, and each in their own right encompass multiple specific activities that need to be designed and delivered in a manner congruent to the business’ situation and objectives.
The activities or tasks need consistent completion, relevant to the particular area. One such area is field visits which, in itself, has multiple dimensions and is part of the wider franchise support concept and context.
The would-be and established franchisor needs to ensure these functions and activities have a safe home. That means someone has the responsibility, capability and capacity to complete them.
The Franchise Support Office Structure can be a key constraint to the success of a developing franchisor business. Founder franchisors, in particular, need to make the transition from an owner operator, who does everything, to a manager and director – effectively developing and delegating to a growing Franchise Support Office management team.
Often times we find overworked general managers responsible for far too many areas. That is not sustainable, as a recent example demonstrated by way of resignation. In turn, this has created a huge issue for a mature network in a highly competitive industry.
Best practice is ensuring your Franchise Support Office structure is aligned with your situation and strategy.
Relevant questions:
- Has your organisation defined all of the key Franchise Support Office functions, activities and tasks essential to it, and what is required to execute them?
- Do you have an over-reliance on one person, who takes responsibility for almost all Franchise Support Office functions and tasks?
About the Franchising Best Practice 500 Series
This is part of a series of franchising best practices. Franchize Consultants is sharing and publishing these best practices weekly for the betterment of franchising. We know that better knowledge and execution of franchising best practices leads to bigger and more valuable franchisor and franchisee businesses.
We have assembled the first 40 best practices into The Best Practice Handbook, which is available for purchase.
