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Responsibility of Franchiser and Franchisee

In becoming a part of a franchise and taking the role of a franchisee, there are specific responsibilities that you may need to take. These must as well be regarded for the success of the business venture. Without these responsibilities, one could pin down himself or herself to bankruptcy or poor growth in the franchise business.

Before you start a franchise, it is first essential to evaluate the responsibilities your franchiser will have to undertake including your responsibilities as a franchisee. Even though the responsibilities are exactly the same with that of a small business owner, the difference still lies in the standards that need to be followed. But, successful franchisees have also made their mistakes but they managed to survive.

responsibility of franchiser and franchisee

Marketing and Finances Responsibilities

There are a number of responsibilities you need to consider especially when it comes to supporting your franchise financially. These will include the set-up costs of buying the franchise, the marketing materials and the retail space lease agreements. One who also decides to buy a franchise must clearly show proofs of meeting the financial responsibilities.

In marketing, the franchiser and franchisee need to establish a good marketing foundation. There is also a need to specifically promote the brand, including the products and services. Even the trademarks need to be legally protected and quality standards need to be established clearly for the services and products.

Promoting the Services and Products and Managing the Territory and Market Area of Franchised Location

As the head of the franchise business or as the franchisee, your responsibility should include promoting your brand and even the goodwill of it. This is usually required in establishing and maintaining performance standards that could help respect the quality of the services and goods provided by the franchise and the franchisees.

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In addition, it is also your responsibility to manage the targeted market area including the territory of the franchised locations. There is a need to plan a strategic way of identifying territories for the expansion of franchises. Initial expansion should also strongly focus on the geographical territories that need to be supported and managed properly.

Employee Training and On-Going Support Responsibilities

Since you are the boss of the franchise business, you will need to incorporate employee training that exactly follow the rules. On the part of the franchisee, one should clearly observe and follow the trainings set by the franchise boss.

Through these training sessions, these will help back the management of the franchise and the franchisees. A training course will also prove to be an invaluable help for them.

On-going support will also need to be provided for the employees. The support usually includes daily operating and technical advice. These are a part of the responsibilities that can help oversee the overall operations of the network franchise.

Now, you have learned the responsibility of a franchiser and franchisee.

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