The ABC of successful franchising
Having helped countless businesses develop their franchise models and evolve into world-beating businesses, FDS Southern’s Gary Rigby explores the key steps to franchise success.
To ensure your business’s journey into franchising runs smoothly, you should always follow a carefully structured timetable. After an initial discussion with the FDS Southern team, and having been satisfied, in principle, that the business model is sound and can be franchised, we are able to implement a bespoke strategy for your business.
A: On-site evaluation of the client’s business model to:
- Fully appreciate the business’ core/related activities
- Obtain data on the entire business method
- Secure relevant financial data
- Discussing 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 four to six-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 the franchise package
- Recommendation on the licence fee to be charged
- Financial projections for the franchise owner territories
- Critical assumptions underlying these projections
- Type of franchisor support structure required
- Ongoing fee structure between franchisor and franchise owner
- SWOT Analysis on franchising the business
- 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.
B: Infrastructure preparation
This second step relates to a work programme to create the infrastructure for successful franchise development, which should cover:
- 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 the franchise owner training programme
- Finalising corporate image elements
- The strategy for franchise owner recruitment
- 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 corporate 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.
C: 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.
I would, therefore, stress the importance of allocating the franchise to parties of the right calibre rather than just those with the capital to invest. FDS Southern helps you, the franchisor, to design eye-catching advertising that portrays the opportunity accurately and effectively to create interest from quality prospects.
Having generated enquiries, we then teach your management team how to invest time and patience in handling your enquiries correctly. 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.
Contact FDS Southern today to find out how we can help you franchise your business.