A franchisee is someone who operates a business under a franchisor’s brand, inheriting a proven, established business model along with the franchisor’s knowledge, systems and support.
The relationship between franchisee and franchisor is one that is built on trust. With a shared goal to achieve business success, a franchisee and franchisor will work collaboratively in order to fulfil this mutual goal.
For this reason, it’s essential when an entrepreneur is researching potential franchise opportunities that this is kept in mind and the importance of working with a brand whose culture and vision is aligned to your own.
At Home Instead we take a collaborative approach, with the franchisor being on hand to provide the franchisee with the support they need to make their business a success. That includes training, operational support, as well as marketing and PR resources. In exchange for this support, the franchisee must comply with our franchise agreement, which ensures that they comply with the brand standards.
With a growing network of franchisees, whom we support from day one, we have so much insight to share about the things to consider before starting your franchise journey.
Roles and Responsibilities of a Franchisee
A franchisee must ensure that their business is aligned to the franchisor’s model and terms of business as set out in the franchise agreement, an essential legal document that outlines the terms and conditions between a franchisor and a franchisee.
The franchise agreement is a vital piece of documentation as it clearly sets out the rights and responsibilities of the franchisee, but also the franchisor, helping to ensure consistency and uniformity across the franchisees’ business and therefore protecting the franchisor’s brand and reputation.
As a management franchise, experience in the care sector isn’t essential to become a Home Instead franchisee, however a desire to care for others, the development of your team and to grow your business utilising your previous career experiences and skill set are required.
For example, to operate a thriving franchise business you’ll be responsible for developing and leading a strong team, with a senior leadership who are operationally capable to take on business responsibilities allowing you to take a hands-off approach and focus more on the businesses’ strategy and growth.
At Home Instead we look for a growth mindset in our franchisees so it’s important that this mentality is established within your business. Home Instead like many other franchisors, provide a marketing strategy and plan for its franchisees to implement, but it’s important that this is properly implemented and executed at a local level in order to raise awareness of your business locally, acquire new clients and build relationships and trust amongst your community.
It’s important to have a handle on your business finances to ensure profitability of your franchise. Although a franchisor will always offer their support and resources to assist a franchisee, it’s important for franchisees to remember that this is their business and their responsibility to make the business a success.
Becoming a franchisee
The first step in the process of becoming a franchisee is to do your homework. Resources such as The British Franchise Association (bfa) provide details of members who are offering franchise opportunities, and it is a great source of education for both individuals and businesses looking to get into the franchise sector.
It’s also important to think about what you’re passionate about and consider choosing a franchise in that sector, this will enable you to stay motivated and driven to make it a success. Your research should also include looking at customer reviews, stories about the brand in the press both positive and negative, look at the competition and where the business you’re interested in sits amongst its competitors. Look for performance information from the past five years as well as speaking to any existing franchisees who can share with you their honest evaluation of the process as well as their experience of being a current franchisee with the brand.
Once you have chosen a franchise, the next step is to approach them via an online form or phone call, you’ll be asked questions about your current situation and what location you are interested in to launch your franchise business.
At Home Instead, we send interested people a prospectus and application form. It might be that one of our ‘Discovery Days’ is coming up, where you can find out more and ask any questions you have.
We interview potential franchisees and ask them to present their business plan. It’s important to be prepared for this and have answers to questions around your goals, financials, experience and why you chose the brand you are speaking to.
It’s important to bear in mind that this is your opportunity to ensure that the franchisor is the right choice for you, so asking questions around the support and training available, values and culture as well as financial expectations is vital.
Once both you and the franchisor are happy to proceed, you’ll sign the franchise agreement.
Benefits of Being a Franchisee
There are various benefits of being a franchisee especially in comparison to launching a business from scratch. With access to a proven business model and ongoing support from the franchisor, the risk of failure is considerably lower compared to launching a startup.
For individuals joining Home Instead, they are entering a sector that is growing and a brand that is leading the way when it comes to the future of home care. Our franchisees benefit from a business model that has been established and proven in the UK since 2005 and has built a strong reputation and brand recognition.
Home Instead’s 70 strong national office and 255+ franchise network is also of benefit to franchisees by providing ongoing training and support, as well as peer support between franchisees.
Challenges and Considerations
As with all business opportunities there can be challenges and things to consider. For example, there is an initial investment as well as an ongoing franchise fee. Also, it can often take time for a franchisee to become profitable, especially in the early days of acquiring clients and building a team.
It’s also important, in the research process to ensure you are able to adhere to the franchisor’s guidelines as set out in the franchise agreement, as a legally binding document, failure to comply may lead to termination of your relationship with the brand.
For those thinking of joining the home care sector, it’s important to consider that there is regulatory compliance and quality of care standards to conform to, and as the UK’s leading home care company, this is an area Home Instead holds as a high priority.
Knowing that there will be challenges along your journey as a franchisee makes it all the more important to ensure your chosen franchisor aligns to your values, goals and vision for your business. It’s also important to be clear on the support offered by the franchisor, for example, at Home Instead we support our franchisees from day one, with a dedicated Business Development Manager on hand at our National Office, to support you throughout every step of the journey to owning your own home care franchise.