Franchisor & Franchisee Relationship: How Does it Work?
The franchisor franchisee relationship is a mutualistic, symbiotic relationship — both benefit from working together. When one party finds success, so does the other. This is especially the case with MassageLuXe, a growing brand that brings more recognition to its franchisees with every new successful location that opens. There are certain qualities in a brand every potential business owner should look for before deciding to become a franchisee.
What is the difference between a franchisor and a franchisee?
A franchisor is the business that sells the right to entrepreneurs to open stores, sell its products, and use its brand name. A franchisee is the business owner who pays a royalty to use the franchisor’s brand name and expertise. The franchisee essentially pays a membership fee to join the club. Not only does the franchisee pay a fee to join the franchisor, the franchisee represents the franchisor and must adhere to a set of guidelines.
According to the International Franchise Association, technically the contract binding the two parties is the “franchise,” but that term more commonly refers to the actual business that the franchisee operates.
How Does the Franchisor Help its Franchisees?
A great franchisor helps its franchisees become great. After all, both entities want to succeed, and they feed off each other’s success.
When business owners open new locations, they should rest assured they will get assistance from the franchisor. Most franchisors, like MassageLuXe, offer owners protected territories to ensure their success. A great franchisor will also help its franchisees get their new stores up and running.
Benefits of owning a franchise also include extensive site-development assistance. Once you decide to open a MassageLuXe spa, the experts at MassageLuXe will help guide you through all phases and details of building and opening your location. Members of the MassageLuXe franchise development team review the site development manual with new owners. The manual includes floor plans and construction specifications, as well as details on installation and equipment.
Training and Assistance
Franchisees should be able to depend on their franchisor for training and support. MassageLuXe offers a training prior to opening your spa both on location and at a classroom at the corporate office in St. Louis, Missouri. After opening, a MassageLuXe franchise expert helps set up the spa’s operations and POS/computer system.
Ongoing support is one of the key benefits of owning a franchise. Each MassageLuXe owner works with a specific franchise representative on day-to-day operations.
Advertising and Brand Recognition
Both the franchisee and the franchisor benefit from brand recognition. When customers know and trust the brand, they are more likely to visit a local franchise. A successful franchise location boosts the brand’s credibility.
Successful marketing campaigns will increase brand recognition, and this is an avenue that benefits the franchisor franchisee relationship. MassageLuXe spa owners benefit from the company’s marketing and advertising materials, which are professionally developed and designed to appeal to targeted clients and demographics.
How Does the Franchisee Help the Franchisor?
Besides helping to boost the brand name, a franchisee generally helps the franchisor through royalty fees. Royalty payments fund the franchisor for both corporate and franchise-related expenses. The royalty fee should allow each owner the ability to earn a profit while still funding the franchisor’s services.
MassageLuXe’s current royalty fee is 6 percent of gross revenue, payable weekly. The initial franchise fee to open a spa is $42,500. These fees support administrative costs, support and training, marketing, and brand development.
The franchisor franchisee relationship is important, and one doesn’t have success without the other. MassageLuXe franchisees know they can depend on the growing brand’s reputation and knowledgeable team members to ensure success.
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