How Franchisees Can Outsource to Their Franchisor
by Ed Teixeira
Here are three ways that franchisors can help generate more sales and improve
the performance of their franchisees. In some franchise systems these services
may already be available.
Itís a reality of franchising that once a franchisee successfully completes
training and has had their grand opening they become responsible for the day to
day operation of their franchise. Of course franchisors should provide support
when needed and audit the performance of their franchisees; however the
frequency of these activities will vary among franchisors.
There are services that a franchisor can provide that could enable a
franchisee to more effectively operate their business and generate more sales.
The franchisor could provide these services for a number of franchisees and as a
result the cost could be much lower compared to what a third party might charge.
In this case the franchisee is outsourcing particular services to its
Here are three services a franchisor can provide for their franchisee through
1. Telemarketing- In business to business franchise
concepts, the franchisor could perform targeted telemarketing services for their
franchisees. A franchisor managed team could contact prospects in a franchisee
territory and schedule appointments and perform other activities. This cost of
these services could be much lower than what a vendor would charge.
2. Franchisee Employee Training- In a number of franchise
companies a franchisee could benefit from having an employee trained in
management and leadership skills. The franchisor could charge a reasonable
training fee to each franchisee. A major benefit would be to have a key employee
trained by professionals without imposing on the limited time and
responsibilities of owner operator.
3. Financial Services- There is financial services that a
franchisor could provide for their franchisees. These include payroll, billing
and accounts receivables management. By providing some or all of these services
at a reasonable cost the franchisee could be more focused on sales generating
These are three examples of services that could be outsourced to the
franchisor at a reasonable cost. This could free up the franchisee to direct
their focus and attention to revenue producing activities. Itís very important
that before a franchisor implements any of these programs that they work with
their franchise attorney to make sure that a program doesnít create any legal or
© 2011 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at