I’ve opened a second retail store on a franchise basis. How closely should I be overseeing the franchisee who is running this store?
The short answer is you need to be working very closely with your franchisee, irrespective of whether they are your first or one-hundredth, for the following key reasons:
1. The franchise store and franchisee are a direct extension of your own business and brand.
That is to say, if the franchisee operates the business the right way, they have the potential to impact positively on your existing “corporate owned” store and any future franchise stores going forward.
Conversely, it also applies that if the franchise store is operated poorly and/or outside regulatory compliance, that has the potential to negatively impact on your existing store.