The Roles and Goals of Franchisors

A franchisor is the entity that owns the franchising company. The franchisor is the one who grants the franchisee the rights to use the brand name, the trademarks and the business methods. The franchisee is the one who uses the franchisor's brand and the franchisor's business model and runs the business under franchisor's business trademarks.

Different Types of Franchisors

Franchisors may be huge companies owned by someone having a lot of business experience, or they may also be the ones with no prior experience and they may have only one or two franchisees. So the franchise size and age varies:

· There are franchises which are owned by large public or private companies.
· Often the franchises are owned by someone who earlier was a franchisee. Later on he bought the franchise from the franchisor. Tom McDonnell is an example of such a franchisor.
· There are many small franchises too, who have just recently started to offer franchises.
· There are also some large franchise systems, which seem to be brand new.

Franchisors give the franchisees the necessary training and system so that the franchisees don't have to do everything on their own. Franchisor has established the business over the time, and knows about the common mistakes, a new franchisee can make. So a franchisee gets to use the franchisor's experience, and gets the success much earlier.

New businesses never fail because of the low quality of their products or services. The main reason of their failure is that they often make mistakes which they can't recover from. A great franchisor on the other hand has made these mistakes but has survived. And as a result, now they have an established business process. A franchisee purchases the rights to use this successful business process.

The main reason a franchisor will assist you in getting success soon, is that he wants the whole system to grow and be profitable. A good franchisor provides a great system to the franchisee, which as a result gets long lasting success soon through effective franchise management.

The franchise technology has grown significantly lately. You can use different franchise softwares, available in market, to make your franchising experience a much better and efficient one. These softwares simplify the nature of running the franchisor business model. The main features, good franchise software provides are data collection, corporate communications, administration, new store management, and marketing management, thus making your life easy. You can get great success if you have effective franchise management.

Netsolace provides customized franchise management software and Franchise Software Technology solutions to optimize and automate the way your franchise system operates.