Franchising your business - an ABC strategy for success
Based on many years of working within franchising helping franchisors and potential franchisors to franchise their businesses, bfa affiliated consultants at FDS Southern provide a proven and effective system for guiding clients through a development programme based on three key phases
Franchising your business can result in failure if you do not follow a carefully structured programme. Following an exploratory discussion and having been satisfied in principle that the business concept is sound and franchiseable, we then implement the strategy for success.
A - Phase 1
On-site Evaluation of Client's Business Concept
- Full appreciation of core/related business activities
- Securing data on the entire business method
- Securing relevant financial data
- Brainstorming ideas on possible franchise structure
- Understanding client aims plus management resources
- Securing data for a franchise development programme
We then undertake the agreed work programme over a three to four week period. This generates an Action Document comprising detailed guidelines for franchising the business.
- Key conclusions for successful franchising
- Key elements and itemised costs of franchise package
- Recommendation on licence fee to be charged
- Financial projections for franchisee territories
- Critical assumptions underlying these projections
- Type of franchisor support structure needed
- Ongoing fee structure between franchisor/franchisee
- SWOT Analysis on franchising the business
- Recommendations and ideal plan of action clearly identifying the best way to franchise the business.
Another meeting follows to present and discuss the contents, and clarify the best way forward. Phase 1 produces an outline skeleton for structuring the franchise. Phase 2 then puts flesh on the bones.
B - Phase 2
Preparing the Infrastructure
This second phase adheres to a work programme to produce the infrastructure for successful franchise development.
Phase 2 Work Programme:
- Intellectual property rights protection
- Identifying support services
- The franchise package
- Preparing financial statements
- Fixing initial and ongoing fee structure
- Production of an attractive franchise prospectus
- Producing the franchise information memorandum
- Producing the franchise manual
- Producing the legal documentation
- Designing franchisee training programme
- Finalising corporate image elements
- Strategy for franchisee recruitment
- Procedure for handling franchisee recruitment
In this vital implementation phase, we work with specialist franchise solicitors, trademark attorneys, accountants, PR practitioners, franchise advertising and editorial personnel, corporate design experts and other professionals to ensure the creation of an attractive and professional franchise offering.
Phase 2 Objectives:
- Credible and professional corporate image
- Clear and inviting franchise prospectus
- Legal agreement fair to both parties but leaving you in control
- Franchise manuals for entire business method
- Territories benefiting both franchisor and franchisees
After the second phase, the new business format should be ready for a professional and confident launch as an attractive Business Format Franchise.
C - Phase 3
This involves marketing your franchise to secure quality prospects to own and operate the franchise. Consolidating the first phase of franchisees is vital to laying the solid foundations for franchising success.
We therefore stress the importance of allocating the franchise to parties of the right calibre rather than those just with the capital to invest. The key is helping you, the franchisor, to design eye-catching advertising, which portrays the opportunity accurately and effectively to attract quality prospects.
Generally, our clients use The Franchise Magazine, which when used correctly can recruit your entire network of franchisees. The combination of advertising, editorial, extensive websites and use of the FDS Central Database has enabled many clients to succeed.
Having generated enquiries, we then teach your management team how to invest time and patience in handling your enquiries correctly, for it is all too easy to invest in promotions and then mishandle the enquiries - for example by using ill-informed call handlers, answering machines or sending out promotional material full of mistakes.
Our in-depth industry experience helps clients to avoid the common mistakes at every stage and move on steadily to enjoying the benefits of franchise development success.
Meet the Team
Gordon Patterson acquired the rights to operate as FDS (Southern) over 21 years ago. During the last two decades he has consulted for many companies expanding their operations through franchising. Many of his client relationships extend over the past 10 to 21 years and businesses that began in local areas have become nationally recognised brands.
Gary Rigby was a member of the senior management team as Franchise Manager and Operations Manager with a major brand for some 15 years. In this capacity, he was involved with a major brand within franchising in all aspects of implementing the franchise development programme. This extended from implementing the original pilot operation, to launching the franchise, recruitment, franchisee support and helping the franchisees with sales and marketing initiatives for their own businesses.
Together, Gordon and Gary have over 35 years of experience in all aspects of franchising. If you are based in the South of England and looking to achieve success through franchising, contact FDS (Southern).