Egor has large background in financial investment assessment in different projects such as expansion of enterprises and construction of new factories and plants throughout Russian territory. Also Egor has experience of being in Russian Franchising system, interacting with national patent authorities, he has evaluated numerous of Russian Franchises packages discovering distinctions with International ones. He knows Russian legislation relevant to Franchising, general laws and particular nuances of extension foreign businesses on Russian territory.
Egor Vladimirov describes the franchisor as the custodian of the franchise brand who takes care of the bigger picture for the entire network. “Franchisors have to keep an eye on market trends, brand positioning, research and development, training and operational best practices,” he explains.
A good franchisor doesn’t operate at arm’s length from franchisees. The fee income of the franchisor is typically a percentage of franchisee turnover and they are therefore both committed to driving franchisee turnover and profitability through sound ongoing support.
The role of the franchisor has moved from that of quality control inspector to more
of a business advisory role. Field service consultants representing the franchisor no longer arrive unannounced with checklists to complete. Instead there is a coordinated agenda tackling current issues, communicating upcoming initiatives and plans to boost the bottom line are agreed to and recorded. Franchisors who collect management accounts from their franchisees on a monthly basis are able to advise from an informed base and anticipate problem areas before the business comes under threat. With this information the franchisor can provide financial benchmarks for franchisees.
· Egor provides an established, tried-and-tested business system, which includes an established brand name and trademark.
· The franchisor benefits from the franchisees’ financial and management investment in terms of network growth with minimal capital investment. In return the franchisor offers training and ongoing support services for a management service fee. Training is typically arranged for both franchisee and key staff members and may involve theoretical classroom as well as practical on-the-job training.
· An operations manual, marketing and advertising support and assistance in setting up are typically included in the franchise package.
· Most franchisors assist franchisees in site selection and provide guidelines on the purchase of inventory and equipment.
· Franchisors operating as nominated suppliers can be a tricky one. However, this is negated if the supply relationship is competitive, transparent at all times and acts in the best interest of the franchise network.
· Franchisees get a blueprint on how to succeed in the chosen business system when investing in a franchise, which really is a proven business system with the supporting business package and established brand. It is their responsibility to market the brand locally, follow the operating guidelines and use the support systems to attract and retain customers.
· Other responsibilities include maintaining the franchisors standards, methods, techniques and marketing strategies.
· Investing in a franchise does not negate the entrepreneurial responsibilities of the franchisee. The performance of the business remains the responsibility of the franchisee, with the comfort of being in business for yourself but not by yourself.