I was talking with a franchisee recently who really was paying the royalty he owed to his franchisor with smile on his face.
No, honestly he was.
It’s all the more remarkable when you consider that he’s only been a franchisee for nearly a year and already he pays, sometimes, the thick end of a grand to his franchisor.
Sure, he’s doing well, the model works and he gets plenty of support, but sometimes, it hurts.
In fact, it hurts like hell!
That was until the other week.
The other week, the franchisor held their annual conference. As always it was a brilliantly well organised affair. With an exhibition of suppliers in the morning, followed by formal presentations in the afternoon and an awards ceremony in the evening.
It was the afternoon presentations that really struck home to my colleague why he was so glad to be a franchisee and why he was no longer going to look at the royalty payment with just a twinge of resentment.
The first presentation was about a super slick IT led learning platform, driven by video content and followed up with real checks to make sure he was learning what he should be learning. All delivered as part of the franchise.
As an individual businessman there was no way he could afford that.
The second presentation was about an online learning resource… very technical help available through an intuitive search engine, with a depth and breadth of material that was simply staggering. All coupled to flow charts and point of sale materials so he could make the most of the resource.
As an individual businessman there was no way he could take the time to researcher that.
The final presentation was about a new, cloud based, IT system that would help him manage his clients and produce the work in an efficient, easy and, overall safe way. Backed up remotely and automatically, with an interface designed with input from the franchisor, so it was almost entirely bespoke.
As an individual businessman there was no way he had the technical knowledge or ability to innovate like that.
All these things the franchisor launched at the conference. They are ready to go. It’s possible to use each one of these tools now.
And each one of these tools will enable my friend to run his business more efficiently, help him become technically competent or develop his skills to take on more and more work.
That’s why franchisees pay their royalty.