COFO Franchise Model: Everything Needs to Know

“COFO'' stands for “Company Owned Franchise Operated”. The COFO Franchise Model allows franchisors to maintain control over their operations while allowing franchisees to benefit from the established brand and proven systems. This model allows franchisees to run their own business while still having the support of a franchisor. The franchisee is in control of the day-to-day operations in this model.

In the COFO Model, both the Franchisor and Franchisee have important roles to ensure smooth business operations and growth. Each has specific responsibilities that contribute to the success of the franchise. Their key works are as follows:

Franchisor

The franchisor is the owner of the business/company who extends the business by providing their brand name or Trademark to the third party. In exchange, the Franchisor gets a particular amount from the franchisee.

There are many works and responsibilities that a Franchisor should perform. Some of them are as follows

• It is the franchisor's responsibility to establish, maintain, and improve the brand. This involves trademark registration, branding campaigns, and ensuring that the brand image stays the same across every platform.
• Franchisees are usually provided with comprehensive training by the franchisor. There are many types of training, including operational, management, and customer service training.
• Many franchisors provide or dictate specific suppliers for products to ensure consistency. This could mean centralised purchasing and distribution or approved vendor lists for franchisees.
• To promote the brand, franchisors often run national or regional advertising campaigns. They may also give specialised marketing materials and techniques to franchisees.

Franchisee

A franchisee is an individual or corporation that buys the rights to open and operate a franchised business exchange to pay a particular amount as fees. The responsibility of a Franchisee is to run the branch as per the guidance given by the Franchisor. The franchisee is also responsible for increasing brand visibility and market shares.

Some many works and responsibilities a Franchisor should perform. Some of them are as follows:

• The franchisee is in charge of managing the day-to-day operations of the business. This involves supervising employees, maintaining stocks, ensuring that the services or goods provided satisfy the company's quality requirements, and dealing with any operational issues that may emerge.
• Franchisees must keep to the franchisor's quality, cleanliness, and customer service requirements. This is essential to preserving the brand's reputation.
• Franchisees must pay an initial franchise fee as well as regular royalties to the franchisor. The franchise fee pays for training and support, while royalties assist the franchisor in creating new goods and services and marketing the brand.
• Franchisees are in charge of hiring and training their employees. This involves ensuring that staff members understand the franchisor's goods and services and can give exceptional customer service.