Free Report: 9 Characteristics of a Great Franchisor
How Do You Know You're Working With A Great Franchisor
Introduction
What Is a Franchise?
A franchise is a type of license that grants a franchisee (residential care home providers, in this case) access to a franchisor’s proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell services under the franchisor’s business name. In exchange for acquiring a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual licensing fees.
If a residential care home provider is awarded a Majestic Residences franchise, the provider still owns 100% of their business. The franchisee agrees to take advantage of the decades of placement, operations, and franchising experience that the co-founders of Majestic Residences possess.
How Franchises Work
A franchise is a joint venture between franchisor and franchisee to increase its market share or geographical reach. The franchisor has a business model that is superior in their chosen industry. It sells the right to use its name, operations, and marketing systems to gain Brand Equity in an area. If a potential franchisee meets the franchisor’s requirement to be awarded a franchise, he or she then buys this right to offer their services under an existing business model and trademarks to dominate a market.
Why Franchise Systems Work
If you owned a small in-home care company in your city, you might be successful, but rarely can you compete with brand dominated companies like Home Instead, Right At Home, Senior Helpers, or ComForCare. The reason for that is branding, technology, and standardization. Franchised companies leverage their sheer scalability by pooling everyone’s money together to not only stay current but to stay ahead of a changing market like senior living.
Name recognition alone can create business opportunities. Part of Home Instead’s success is the fact that there are 1,000 offices worldwide. Imagine if your residential care home had 999 homes just like you. I am sure you would agree that having 1,000 of your homes around the country would easier take your profitability into the stratosphere.
However, a franchise system alone does not guarantee success. You have the leadership, expertise, and drive to create a world-class franchise system and brand. Majestic Residences’ Co-Founders made quite an impression on the senior housing industry when they announced their collaboration to create a new category between the residential care homes and the large national assisted living providers. First, we will meet the Majestic Residence Team, and then we will discuss the Top 9 Characteristics of a Great Franchisor.
Meet The Majestic Residence Team
Characteristic #1
They Are Inspirational
A good franchisor is inspiring – to their team of franchisees and to the customers buying into the products or services. If the franchisor is enthusiastic and passionate and truly believes in the values and aims of the business then that will cascade down to the team and beyond.
Characteristic #2
They Are Supportive
The relationship between franchisee and franchisor doesn’t end when the franchise agreement is signed. A good franchisor recognizes the importance of investing in ongoing support, technology, and training for the franchise team. They are in tune with what the franchisees need from operations, marketing, and the management team
Characteristic #3
They Communicate
Characteristic #4
They Are Honest
Characteristic #5
They Listen
Any franchisor ignores feedback at their peril. Franchisees working on the frontline in the business provide valuable information about what’s working in the business and what isn’t, what is profitable and what is not. Harnessing the power of listening is vital to the long term success of a brand. Listening to franchisees is what put CarePatrol and Co-Founder Chuck Bongiovanni in the Franchise Satisfaction Hall of Fame.
Characteristic #6
They Adapt
Things change. Potential Residents and their families’ needs and wants evolve, new trends emerge, and competitors appear on the horizon. A good franchisor sees the need for the brand and the product/service to evolve, and looks to adapt and develop the business to keep moving forward. The whole reason why Majestic Residences was founded to adjust to the changing senior housing industry.
Characteristic #7
They Value The Team
A franchise brand’s biggest asset is its franchise team. A great franchisor creates a positive culture and values the contributions that everyone brings to the business, including the franchisor’s staff, the franchisees, and their employees.
