Franchisor management, organization and administrative policy

Franchisor management, organization and administrative policyWeek 41Learning outcomesLearn about the functions of franchisor management in a franchise systemUnderstand franchisor management practices and their importance to a franchisorLearn the ten commandments of a successful franchisorUnderstand the importance of quality and quality controls in franchises2Being a successful franchisorWhat does it take to be a successful franchisor or franchisee?Management abilityA franchise entrepreneur needs the ability to conceptualize, organize and manage a business.

3Success is an entrepreneurial business venturePersonenvironment organizationabilitiesmotivationattitudesworkable mathSuccessStrategiesPolicies franchiseeHard workGovernmental regulationFinancial accessibilityGenuine business opportunity4Franchise development processOrganizationFinancesHuman resourcesVisionProductsservicesStrategic developmentAdministrative developmentsOperations developmentAdvertizingAccountingManagementProductionsTrainingDistributionOperationsField staffMkt. research

5Organizational development

6The process of managementPlanningPrimary responsibility of the ownerDetermine overall goals, mission and objectivesFormulating policies, plans of actions and proceduresDetermine standardsLine of products7The process of managementOrganizingCoordination of human, financial and physical resourcesStaffing each job Authority/ responsibility relationship Development of formal organization chartMultiunit franchisingArea developerMaster franchiseeArea representativeFranchise broker8The process of managementDirectingUsed to achieve the franchise objectives while building a culture conducive to encourage superior performanceFive major activities of directingGiving directivesSupervisingLeadingMotivation and communication9The process of managementControllingInvolves the determination of standards and methods of evaluating performance against those standards to appraise operating resultsSteps involved in controllingDetermining the performance standardsComparing performance to standardsTaking corrective actions

10Ten commandments of a successful businessLeadershipStaying with the business one understandsDeveloping and maintaining a unique nicheKeeping first hand touch with the customerRelentless pursuit of management principles and fundamentalsOrganizationFreedom from government interventionStrong fiscal responsibilityStrategic developmentPicking winners

1110 commandmentsLeadershipMust have a sense of visionMust be able to articulate visionMust be able to develop agenda to accomplish strategic visionMust have self confidence to make it happenInformation, knowledge, action

1210 commandmentsStaying in business you understandAlmost all successful people has followed this principleWithin own spectrum of knowledge.Develop and maintain unique market nicheShould develop a niche with high quality productE.g in food service it is important to provide consistently fresh, made to order, quality products1310 commandmentsKeep in touch with customersBroad communication programMaintain management principles and fundamentalsFranchisor needs to maintain a relentless pursuit of management principles and fundamentals which the organization will operateDevelop and maintain strong organizationIt is the franchisors responsibilityPeople knows their responsibilities and how to respond to management directives

1410 commandmentsRemain free from government interventionRegulations to ensure health, property and personal safety are important.Develop fiscal responsibilityNeed to understand financial picture.Need to understand the financial responsibilityDevelop strategic planNeed to explain vision of the operation to individuals. Must be strategically orientedPick winnersGood honest hard working people.People build success15MotivationImprovement- oriented attitudeMeasuring everyones performanceEvaluationFeedbackrecognition16QualityQuality is the customers perception of the product and is greatly influenced by the employee or serverAttitude of the customer is made by three key factors70 percent the way the customer is looked at29 percent- based upon the tone of the servers voice1 percent- exactly what the employee( server) says17William Rosenberg1916-2002

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