Being a business manager also means mastering entrepreneurial hurdles within franchise concepts and putting a group of different people together to form a productive team. However, with the high level of responsibility, the franchisee, as managing director, also gains privileges that can facilitate his work processes and those of his employees. Due to the many years of experience of Engel & Völkers in the real estate franchise, we would like to give you some pointers to enrich your work as a managing director of a franchise business.
What functions does the manager have in franchising?
To control the internal and external processes of a franchise operation, a decision-making authority is required. However, unlike traditional companies, this power is split into several dimensions: the management, in personal union or represented by several officials, is usually responsible for day-to-day business decision-making. These include areas such as the weekly work plan, recruiting new employees or maintaining the production and sales processes. But the management is also responsible for the profitability of the franchise. In addition, the franchisee represents the operation on the outside, such as at public events or negotiations with third parties.
The franchisor is in a "perpetual debt" relationship with the franchisee as he co-owns the franchisee in his business concept: he oversees the development of the brand strategy, training and education processes and the adaptation of the offer to current market fluctuations and trends. However, the franchisor should not intervene directly in the regular procedures of the franchise operation.
Both parties are bound by the mutually agreed terms of the franchise agreement, which is concluded in advance of the investment. Here, the duration of the cooperation, the allocation of competences of both sides and the amount of the franchise payments or the participation of the franchisor in the profit of the franchisee are determined.
An advantage of franchise management concepts is that an interim solution can be provided by the franchisor in case of prolonged absence or illness. These "jumpers" can be recalled from the franchise headquarters or other franchises to represent the actual manager until his return.
The key skills of a successful franchising manager
Franchising executives should first have in-depth knowledge of their industry, such as the real estate franchise, the hospitality industry or retail, to make informed decisions. This also includes basic business skills that will help make franchising profitable after the initial investment.
As a franchisee and managing director, you are a role model, confidant and person in charge of your employees. This requires empathy, conciliator skills and human understanding. In an employment relationship that is characterized by mutual sympathy between the franchisee and employees, there is usually a significantly higher level of job satisfaction, which in turn leads to a positive outlook in sales and an increased motivation of the workforce. As a general manager, you contribute to the efficiency of your entire team through practiced fairness and a friendly manner.
Franchise Concepts: Agile Management and Flat Hierarchies?
Even if the management is in principle responsible for the decision-making authority over the fate of the company, models have emerged since the turn of the millennium that strengthen the co-determination opportunities of the entire workforce. Agile methods such as SCRUM or APM, which are particularly suitable for project development, require management to be willing to compromise, as much of the responsibility is assigned to the team. The managing franchisee becomes an equal part of the development team, which opens up new perspectives on flexibility and product quality.
Depending on the franchising industry and franchisor requirements, the use of such methods may make different sense, so that the qualities required by the franchisee vary.
The Engel & Völkers Academy: Exclusive Benefits for Franchisees
As a franchisee of Engel & Völkers and managing director of your own real estate shop, you will have the opportunity to attend the Engel & Völkers Academy for selected further education programs and seminars for real estate agents. Enhance your knowledge of real estate franchises, attend leadership courses or learn about the latest developments in marketing methods. The offer also includes foreign language courses to help you improve your language skills. With the regular updates by the Engel & Völkers Academy, you, as managing director in the real estate franchise, are up to all the challenges of management and are prepared for the future with newly acquired knowledge. By the way: To keep your entire team up to date, your employees can also take advantage of the Engel & Völkers Academy offer.
Start your independent career as a real estate broker at Engel & Völkers! As one of the strongest brands in the real estate franchise, we offer you ideal entry conditions - from a convincing corporate identity to our high-performance system platform. If you are interested, we look forward to hearing from you by phone or e-mail.