Franchisor management,

organization and administrative

policy

Week 4

Learning outcomes
Learn about the functions of
franchisor management in a
franchise system
Understand franchisor management
practices and their importance to a
franchisor
Learn the ten commandments of a
successful franchisor
Understand the importance of quality
and quality controls in franchises

Being a successful
franchisor
What does it take to be a successful
franchisor or franchisee?
Management ability
A franchise entrepreneur needs the
ability to conceptualize, organize and
manage a business.

Success is an entrepreneurial business

venture

Person

motivatio
n

abilities

attitudes

environment

wo
rk
abl
e
m
at
h

Governmental
regulation
Financial
accessibility
Genuine business
opportunity

organization

Strategi
es
Policies
franchis
ee

Har
d
wor
k

Succes
s

Franchise development
process

Strategic
developme
nt
Vision
Product
s
service
s

Administrati
ve
developme
nts
Organizati
on
Finances
Human
resources

Operations
developme
nt
Advertizing
Accounting
Management
Productions
Training
Distribution
Operations
Field staf
Mkt. research

Organizational development

The process of management

Planning
Primary responsibility of the owner
Determine overall goals, mission and
objectives
Formulating policies, plans of actions
and procedures
Determine standards
Line of products

The process of
management
Organizing
Coordination of human, financial and physical
resources
Staffing each job
Authority/ responsibility relationship
Development of formal organization chart
Multiunit franchising
Area developer
Master franchisee
Area representative
Franchise broker

The process of management

Directing
Used to achieve the franchise objectives
while building a culture conducive to
encourage superior performance
Five major activities of directing

Giving directives
Supervising
Leading
Motivation and communication

The process of
management
Controlling
Involves the determination of standards
and methods of evaluating performance
against those standards to appraise
operating results
Steps involved in controlling
Determining the performance standards
Comparing performance to standards
Taking corrective actions

Ten commandments of a successful

business

Leadership
Staying with the business one understands
Developing and maintaining a unique niche
Keeping first hand touch with the customer
Relentless pursuit of management principles and
fundamentals
Organization
Freedom from government intervention
Strong fiscal responsibility
Strategic development
Picking winners

10 commandments
Leadership
Must have a sense of vision
Must be able to articulate vision
Must be able to develop agenda to
accomplish strategic vision
Must have self confidence to make it
happen
Information, knowledge, action

10 commandments
Staying in business you understand
Almost all successful people has
followed this principle
Within own spectrum of knowledge.

Develop and maintain unique market

niche
Should develop a niche with high quality
product
E.g in food service it is important to
provide consistently fresh, made to
order, quality products

10 commandments
Keep in touch with customers
Broad communication program

Maintain management principles and

fundamentals
Franchisor needs to maintain a relentless pursuit of
management principles and fundamentals which
the organization will operate

Develop and maintain strong organization

It is the franchisors responsibility
People knows their responsibilities and how to
respond to management directives

10 commandments
Remain free from government intervention
Regulations to ensure health, property and personal
safety are important.

Develop fiscal responsibility

Need to understand financial picture.
Need to understand the financial responsibility

Develop strategic plan

Need to explain vision of the operation to individuals.
Must be strategically oriented

Pick winners
Good honest hard working people.
People build success

Motivation

Improvement- oriented attitude

Measuring everyones performance
Evaluation
Feedback
recognition

Quality
Quality is the customers perception of the
product and is greatly influenced by the
employee or server
Attitude of the customer is made by three
key factors
70 percent the way the customer is looked at
29 percent- based upon the tone of the
servers voice
1 percent- exactly what the employee( server)
says

William Rosenberg
1916-2002