Who Controls What In a Franchise?

July 15, 2022

Becoming a franchisee is an excellent choice for those who are new to business. A franchise is a component of an established (and often successful) business model. You begin your business with the reputation and recognition of an established and recognized brand when you purchase a franchise. Customers are familiar with the company’s name and have preconceptions about what it offers.

Controlled by the franchisor

  • Branding. This covers everything that a customer sees, like the logo, corporate colors, products, and services. The franchisor maintains a consistent policy and practice, which enhances client trust and recognition.
  • Advertising. Your franchise fees include national and regional marketing and advertising. The franchisor acts as your publicist, allowing you to concentrate on growing sales.
  • Operational systems. The franchisor’s success is in part due to the processes they’ve fine-tuned for success. That means that staff training programs, cleaning standards, dress codes, and financial reporting procedures are all part of a pre-determined, successful system as a franchisee.
  • Choice of franchisees. A franchisor will evaluate your application in light of its long-term growth strategy. As a franchisee for the company, you must fulfill certain standards to be accepted.
  • Franchise fees. These are pre-agreed, but you will pay various fees to operate a franchisor’s model. In exchange, you get assistance with opening, training, marketing, and operations.

Controlled by the franchisee

  • Hiring. You can choose candidates who are a good fit for your organization. You will, of course, be looking for certain characteristics in prospective employees.
  • Sales and revenue. Creating a client base is up to you once you’ve set up your phone or location for business. By networking and selling your service or product, you can build your company.
  • Accounting and Finance. There are accounting functions built into the software of some franchisors to make your life easier (and to ensure that their revenue-based fees are paid accurately). You’ll still have to handle it and keep it up to date.
  • Payroll. Owners of franchises pay their workers directly, so therefore you must handle money as well as wage and labor rules in your location.
  • Dedication. Your hard work and dedication are critical to your success. A franchisee must have the ambition to succeed as well as faith in the franchisor’s brand.

Choosing a franchise is an intelligent approach to getting into business for yourself. You’ll be able to take advantage of the franchisor’s established and successful business model, turning it into your own business asset. In exchange for brand exposure and operational assistance, franchisees give up some control, but they are part of a combined company structure that flourishes — for the franchisor as well as the franchisee.

If you want to learn more about what goes into owning a franchise, give UNITS® Moving & Portable Storage a call today! We can help you fulfill your dreams of becoming a business owner with our moving and storage franchise opportunities across the country. Start your evaluation today and join the UNITS® family!

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