Franchising is being in business for yourself, but not by yourself. As a franchise owner—also known as the franchisee—you own the business and must follow the system and rules set out in your franchise agreement with the franchisor.
What is the role of the franchisor?
The franchisor must provide a proven and tested business system. Though each franchise is owned and operated by the franchisee, the franchisor retains control over how products and services are marketed and sold and controls the overall quality and standards within the business. The franchisor provides initial and ongoing support to the franchise network that includes real estate advice, training, operational and technology support, and marketing programs and tools.
What is the role of the franchisee?
In a franchise relationship, franchisees are entitled to trade under the trademark and trade name of the franchisor. As a new business owner, you must apply your own effort, expertise, and determination to your new business. While you should expect support, knowledge, and a proven system from your franchisor, it’s your job to follow the system to success. Franchising isn’t a good fit for people who want to go their own way and tweak things. Instead, it’s a good fit for people who want to work hard within a proven business model.
What is a typical franchise financial arrangement?
As a franchisee, you’ll need capital to invest in the business. The franchisor typically receives an initial fee, and an ongoing royalty, usually based on a percentage of annual sales. Franchisors should communicate clearly about the initial fee and royalty costs, how much it takes to begin operating a franchise, and how much liquid capital is required to get started. To see what franchise financials look like for Hand & Stone, visit our investment page.
What kind of companies are franchises?
Franchising works successfully in a wide variety of business domains, from fast food, plumbing services, and car renovation to the quick print sector, and affordable but luxurious spa services. According to the Canadian Franchise Association, “A business that is suitable for franchising, no matter its product or service offering, has a history of success and a tried-and-true formula that will allow it to replicate that success in a new location.”
What is the professional franchise association in Canada?
In Canada, franchisors should be members of the Canadian Franchise Association (CFA). If a franchisor isn’t a member of the CFA, consider that a red flag because the CFA is there to assure franchisors play by the rules. To become a member of the Canadian Franchise Association, franchisors must meet requirements including proper franchise documentation, having satisfactory relationships with franchisees, and following the CFA’s code of ethics. Hand & Stone is a proud member of the Canadian Franchise Association.
Now that you know more about franchising, you may be interested in learning about what it’s like to be a Hand & Stone franchisee. We recommend you read some of our owner stories, and get to know our Hand & Stone franchise culture.
Take control of your lifestyle with a solid business system.
Hand & Stone is the most relaxing massage and facial franchise investment opportunity in Canada. Our proven business model allows franchise owners to profit from the booming health and wellness market and meet consumer demand for luxurious yet affordable spa services. Find out more about becoming a Hand & Stone franchisee by reading our blog or connecting with us directly.