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This article is part of our “ Business Startup Guide ” –a curated list of our articles that will get you up and running in no time!
I recently posed this question to a high school entrepreneur club. Their answers were interesting:
Those answers are all correct. But, there’s more to franchising than just uniformity.
What is a Franchise?A franchise is a type of business that is owned and operated by individuals (franchisees) but that is branded and overseen by a much larger—usually national or multinational—company (the franchisor).Many of the stores and restaurants that you see every day are franchises: Subway, 7-11, The UPS Store, Ace Hardware, Pizza Hut, Hilton Hotels, Molly Maid, and thousands more.
When you buy the rights to open a franchise, you’re buying the rights to use a proven business system, with proven prices, products, and marketing techniques. You’re also buying the rights to a brand: You get full access to the company’s trademarked materials including logos, slogans, and signage—anything that has to do with the brand .
How to Become A FranchiseeTo become a franchisee, you need to pay an up-front franchise fee . Paying the up-front franchise fee (and signing the franchise agreement) gives you the right to use:
· The franchisor’s name
· The business systems
· The operations manual
· Marketing materials
· Software
· All other proprietary material
In addition, you may be given an exclusive territory in which to sell your franchise’s products or services. Information about territory is always spelled out in your franchise agreement as is the time period for which you own your franchise business. Typically, franchise agreements are between 5–10 years in length and you usually have the right to renew them.
Why Do Some Companies Franchise Their Businesses?Franchising can be a great way for companies to increase their distribution. Issac Singer created an early form of franchising with the way he sold his Singer Sewing machines, and Henry Ford did it with his automobile franchises.
Mostly though, franchising a business offers one huge advantage to companies: they don’t have to use all of their own money to grow their business. Instead, they can use Other People’s Money (the franchisee’s).
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Rob Seay
Director of Employee Experience
If you’re reading this, in all likelihood, you are feeling overwhelmed too. A recent study from
Deloitte
shows 65% of executives feel that overwhelmed employees are an “urgent issue.” What’s the main offender here? The Atlantic says it’s a symptom of a communications issue called “
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.” It’s no secret that the explosion of mobile technology has dramatically increased the volume and rate at which we consume information daily. At work, employees are now overloaded with information all the time because every day someone invents a new way to ping, push, and notify us of something we’re not doing. At home too, employees are feeling like they can’t leave their work at the office because their phones are still receiving work communications from other hyperemployed colleagues well into the evening.
But the Atlantic is only half right. This blurring of the personal and professional extends the other way too. At work, mobile devices have opened up an unprecedented and wide window into the outside world. Employees are already overwhelmed by communications they’re receiving internally. Add to it the increasing number of external messages that have an equal, if not stronger pull, it’s no wonder employee attention is so fragmented. It all has a measurable toll.
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shows 57% of all work distractions now occur because of social media tools or from employees switching between different applications.
Simply put, feeling overwhelmed is now our baseline when organizational operations are
stable
. In times of change, that overwhelmed feeling goes into overdrive. That’s a problem because change is when effective communication with employees is needed the most. Employees are expected to fulfill the standard functions of their jobs, but now they have new concerns that didn’t exist before (primary of which:
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Will I still have a job?). These concerns start
bubbling up to the top
, and it’s up to internal communicators and
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to provide the right messages at the right cadence to reassure and guide employees through change.
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