What does it mean to become a franchisor?

Business man

How to franchise your business: what does it mean to become a franchisor?

If you are considering franchising your business, you likely have a lot of questions about what your new role might entail. In this post, we look at the role of the franchisor, the key aspects of the job and the characteristics you might need to be successful in the role.

What is a franchisor?

A franchisor grants other entrepreneurs a licence to run a business under their brand name. While as the franchisor you will own the rights and trademarks to the business, your franchisees may use these to conduct their business.

The most important part of being a franchisor is developing relationships with your franchisees, and working together to expand the brand in ways that would be impossible if you were going it alone. The franchisor is the leader of the operation and directs the franchisees to success. It will be your responsibility to ensure brand consistency and integrity across all operations. However, developing mutual trust and respect with your franchisees is an integral part of this role.

Why not check out what is the difference between a franchisor and franchisee

What are a franchisor’s responsibilities?

Listed below are seven key things that as a franchisor you will be responsible for.

Choosing the best franchisees to grow your business

Choosing your franchisees can be challenging, but getting the right people to help you expand your business is crucial. You need to choose franchisees who align with the goals of your business and fully understand what you are trying to achieve. Although passion is important, you must be confident that any potential franchisee will operate to the established standards you set out.

Key points:

Entrepreneurs may have experience in running a business, but they may find it difficult to adhere to established operational practices, or have the skills and expertise required for your particular line of business.

Take your time. Don’t just hire the first person that shows interest. You must be clear on how they will fund the venture and know that they fully understand the financial implications of starting a franchise. Where a franchisee cannot effectively run their business model at a profit, this can cause difficulty for your business in the long term.

Acting as a leader

You are the leader of the business, and you must provide direction for your franchisees. It will be your responsibility to set the working standards for the franchises that make up your business. You will also need to live the brand values, ensuring that every member of the business understands what you do and why you do it, creating a positive culture in your business.

Sharing expertise with franchisees

To make sure each and every franchise that makes up your business has the best chance of success, you will need to share your business and sector expertise with your franchisees. Your franchisees will look to you for guidance across all areas of their business, as well as to help them understand how to grow and be successful in their venture. You will need to develop strong relationships with your franchisees, and provide them with expertise long after their franchise has started.

Providing ongoing support to franchisees

As part of your franchise agreement, it is likely you will be required to provide ongoing support to franchisees. Ongoing support is very attractive to potential franchisees and the package you offer can help to recruit new people into your business network. You will need to provide technical support, as well as advice about the day to day running of the business. It will be a key part of your new role as a franchisor to oversee all of the operations in your business, to ensure things are running smoothly.

Protecting the brand

Branding is a huge part of what sets your business apart from your competitors, and you will need to fiercely protect your brand as your business expands. You may even need to work on your brand to make it clear and robust. Most importantly though, your brand needs to be consistent. Customers need to know that when they visit any of your franchises, they will receive the same level of service or high-quality product they have come to expect.


You will also be responsible for ensuring that your brand is marketed consistently. While franchisees will conduct their own marketing efforts locally to bring in business, you will need to establish quality standards for doing so.

Communicating effectively

Maintaining strong relationships with all of the parties in your business, particularly franchisees is important. They should feel like part of the bigger business. You should communicate regularly with your franchisees about training, marketing campaigns, new ideas or even just to touch base. Solid communication is one of the foundations of an excellent franchise business.

Ready to franchise your business? Get in touch with our experienced team today to find out how we can help you.

Quality Franchise Association Logo

Get In Touch