3 steps to franchise success
Based on many years of experience helping businesses to expand by franchising, FDS Southern provides a proven and effective system for guiding clients through a development programme
To ensure your business’s journey into franchising runs smoothly you should always follow a carefully structured timetable. After an initial discussion and having been satisfied in principle that the business model is sound and can be franchised, FDS Southern will implement a strategy for success.
Step 1: On-site evaluation of client’s business model to:
- Fully appreciate the business’ core/related activities
- Obtain data on the entire business method
- Secure relevant financial data
- Brainstorm ideas for possible franchise structure
- Understand client aims plus management resources
- Secure data for a franchise development programme
FDS Southern then undertakes the agreed work programme over a three to four week period to generate an action document that will contain detailed guidelines for franchising the business, including:
- Key conclusions for successful franchising
- Key elements and itemised costs of franchise package
- Recommendation on licence fee to be charged
- Financial projections for franchise owner territories
- Critical assumptions underlying these projections
- Type of franchisor support structure required
Ongoing fee structure between franchisor and franchise owner
Recommendations and ideal plan of action identifying clearly the best way to franchise the business
Another meeting follows to present and discuss the contents and clarify the best way forward.
Step 2: Infrastructure preparation
This second step relates to a work programme to create the infrastructure for successful franchise development.
- Protecting intellectual property rights
- Identifying support services
- The Franchise Package
- Preparing financial statements
- Fixing initial and ongoing fee structure
- Production of an attractive franchise prospectus
- Creating the Franchise
- Information Memorandum
- Writing the Franchise Manual
- Producing the legal documentation
- Designing franchise owner training programme
- Procedure for handling franchise owner recruitment
In this implementation phase, FDS Southern teams up with solicitors, accountants, trademark attorneys, PR executives, advertising and editorial personnel, corporate design experts and other professionals to create an attractive and professional franchise offering.
This should include:
- Credible and professional image
- Clear and inviting franchise prospectus
- Legal agreement fair to both parties but leaves the franchisor in control
- Franchise Manuals for the entire business
- Territories benefiting both franchisor and franchise owners
After the second phase, the new business format should be ready for a professional and confident launch as a franchise.
Step 3: Recruiting franchise owners
Consolidating the first phase of franchise owners is crucial to laying the solid foundations of a successful franchise. This involves marketing a franchise opportunity so that it attracts quality prospects to own and operate it.FDS Southern’s in-depth industry experience helps clients to avoid the common errors at every stage and move on steadily to enjoying the benefits of franchise development success.
Written by Gary Rigby