Strategies for Successful Franchising System and Social Responsibilities

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Franchising
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Table of Contents
Strategies for Successful Franchising System......................................................................1
The Upside down Pyramid:..............................................................................................1
The Three Decision Lens:................................................................................................1
Educate Franchisee:..........................................................................................................1
Develop a crystallized plan and vision:............................................................................1
Franchise Relationship.........................................................................................................1
Negotiation:......................................................................................................................2
Innovation:........................................................................................................................2
Emotional Turbulence:.....................................................................................................3
Social Responsibilities.........................................................................................................3
Economic Responsibility:.................................................................................................3
Legal Responsibility:........................................................................................................3
Ethical Responsibility:......................................................................................................3
Philanthropic responsibility:.............................................................................................4
Obligations...........................................................................................................................4
Financial:..........................................................................................................................4
Marketing:........................................................................................................................4
Administrative:.................................................................................................................4
Territory Development:....................................................................................................5
Dispute Resolution Strategies:.........................................................................................5
Future of Franchise:.............................................................................................................5
Bibliography.........................................................................................................................6
Strategies for Successful Franchising System

The Upside down Pyramid:
This is one of the most important strategy for building successful franchise business. In
this, we will do a paradigm shift of organizational structure. As most of the firms have
centralized system which they are operating in their business. The managers gives
instructions to their employees and it eventually trickles down to customers. As franchising is
different from a traditional corporation and it is a unique business model. By using this
strategy, we can flips the structure of the business by placing leader at the bottom as mostly
franchise owners are the independent business operators. By implementing this strategy we
upside down the organization structure which leads to successful business franchise. (Marco,
2017)
The Three Decision Lens:
According to this strategy whenever a decision is made we have to consider three factors
i.e., Political, Legal, and Practical. Making a fine decision is the main mission of every
successful franchise. By considering these three factors we can we can minimize the risk of
franchising which will eventually leads to building a successful franchise for our business. In
this we see the legal laws and political stability of a country. If a country is not political
stable than it is very risky for a business to open its franchise there. Sometimes the legal laws
of that country also restrict the business to open its franchise. It is important for every
manager to consider three decision lens for building a successful franchise. (Grosman, 2017)
Educate Franchisee:
This is also the most important part of a franchisor when he wants to expand his business.
Franchisor educates franchisee about the guidelines of the brand and the need for them. It
includes all possible potential harm when a franchisee not follow the guidelines. (Grossman,
2017)
Develop a crystallized plan and vision:
Planning and vision plays vital role in making franchising system successful. Most of the
company is not doing well because of lack of planning. It is very important for our business
to make a clear vision and plan so they know what they will do in future. Most of the
companies moves to wrong direction just because of their unclear vision and plan. This stage

includes effective planning and vision before running any business franchise. (Grossman,
2017)
Franchise Relationship
It is a different and unique business arrangement. It is quite different from the traditional
model because of large number of owners are involved in the network. The relationship is
drastic alteration that is exist between franchisor and franchisee. If we talk about the failure
of the franchisee it will because of two reasons. The first includes the macro environment and
second is because of poor franchisor who doesn’t have adequate structure. We can also relate
the relation of franchisor and franchisee like a marriage. Their relation start with a court and
become more solid as time passes. Both parties confidence will increase as time passes. And
it will keep on strengthen until the divorce separates them. In this one part is strong no matter
how much longer the relationship exist between them. Their relationship is for a fixed period
of time and will be renewable after that time. (Nethan, 2017)
Negotiation:
It is a relationship between franchisor and franchisee. This involve regulations and merits
to define and to protect the service quality or product that are being provided or sold to the
consumers by the franchisee. The business which is conducted by the franchisee is the
business which franchisee licensed
To carry out which is according to the terms written into the contract. The contract life is
written into the contract which maybe of one year, or as long as you desire. Mostly the
contract life is between three to five years. (Elgin, 2002)
Rules are very important in franchising it starts from original contract to renewals. The
agreement between franchisor and franchisee include all rules that are specified into that
particular agreement. In franchising business a person is in front seat of the competition if he
follow all the rules that are written under the contract. So it is important for everyone to know
and accept the rules. The potential franchisee may fear the system that franchisor has
established which includes conform to an intimidating corporate system and overpowering.
This kind of fear is exist in all business organization and social life. It is impossible to protect
the validate value of trademark, rich history of services or product and the brand without