Franchise templates, do they work?
Before creating a franchise offering, prospective franchisors must first determine whether or not their business has what it takes to be successful as a franchise model. With the assistance of an experienced Franchise Consultant you will be able to obtain a realistic and non-biased opinion of the franchise potential of your business and, if the results are positive, proceed to evaluate the best way to franchise your business.
To create a Franchise Package you can work from a Franchise Template, which covers only the most basic requirements of a Franchise Package and can be purchased online from £500, which may seem like a money saver but without the correct professional advice to assistance with your Franchise Development this avenue could end up being a waste of time and money.
“There is no shortcut to success in creating a Genuine Business Format Franchise,” says Roy Seaman, founder and Managing Director of Franchise Development Services. “The reality is that Franchise Templates are very much like a do it yourself kit, they only provide the guidelines for some of the elements of a very standard package. There has not yet been a single new franchisor that has created a Genuine Business Format franchise offering that has stood the test of time and that has been fair to both franchisor and the franchise owner.”
When creating a Franchise Package the first practical step a franchisor should take is commission an experienced franchise consultancy company to carry out an Evaluation Analysis so that all of the basics covering the essential 21 areas can be investigated and reported on. Then decisions need to be made as to which way the franchisor should be creating their offering.
The importance of a Franchise Package cannot be overstated, it is the most important legal document that both franchisor and franchise owner have to sign. If a Franchise Package does not convey a professional, attractive and legally legitimate franchise opportunity it could affect the franchisors future business success and franchise owner recruitment. When dealing with something as important as a Franchise Package, seeking professional advice is always strongly recommended. Franchising your business can result in failure if you do not follow a carefully structured programme.
Weighing 21 key factors, the Initial Business Analysis offered by Franchise Development Services (FDS) is one of the most respected franchising feasibility studies available. An experienced Franchise Consultant will work with you to determine the best means and profitability of franchising your business, and (where appropriate) provide you with a comprehensive Franchise Development Business Plan you can take to the banks.
Franchise consultancy experts FDS, which will be celebrating its 30th year of commitment to the franchise industry at the end of this year, has assisted bringing new and existing brands into the British market while simultaneously assisting British franchisors to go global.
Through a network of offices in the UK, Europe and Australia, its highly experienced franchise professionals provide a comprehensive range of services to help individuals and organisations to own a franchise or franchise their business.
Franchise Consultant Gordon Patterson, who has over 25 years of experience working in the franchise sector, advises that potential franchisors always seek professional help and don’t just rely on a Franchise Template when producing their Franchise Package.
“In my view the provision of templates to clients is not the best way to help them, regardless of how good the templates may be,” he says. “There is no substitute for professional and competent consultancy advice and guidance. Many of the decisions that need to be made with regard to such things as the contents of the Franchise Package, the worth of the licence fee, the ongoing MS Fee and franchisor support services can only be accurately determined in face-to-face consultation with the client.
“However, clients engage consultants in order to benefit from their know-how and expertise, experience and the brainstorming of key issues relevant to the franchise success of any brand. A consultant cannot effectively convey his or her experience through templates. It is dangerous for a client to think that they can do a DIY job by using correct templates.
“Experienced consultants have knowledge of what has gone wrong in the past and can help to steer clients to the right decision and create a franchise structure that provides the best opportunity to succeed. The use of templates by the client can be deceptive in that they think they have it right when in practice certain key aspects of the franchise structure and its documentation can be wrong.”
FDS Franchise Consultants provide business owners with a comprehensive, clear and professional Franchise Package, which is specifically tailored to the requirements of their opportunity, quality marketing and recruitment campaigns via the company’s industry publication The Franchise Magazine and dedicated ongoing support.
Written by Tiffany Brooking