WHY A COMPANY FRANCHISE BUSINESS MODEL franchise cost 100 new locations without any invoices buy a franchise for property, equipment, foot and build from the acquisition cost or no risk. Even imagine, managers run all those places that just to grow the company, as you are committed - and not having to pay them a cent. In fact, they give you money to pay for the right to operate your business model.
For many companies, the creation of a franchise program is a sensible way to grow quickly and profitably, without reaching to any control or ownership. If one is possible from a single location to dozens or even hundreds, and is well documented, because franchisees, investors put up all investment capital, shoulder any risk and take all day to day operational pizza franchise responsibility. It is expanding, with OPM - other people's Money.
ENTERING A NEW BUSINESS The bad news, a franchise company plans need to recognize it enters a new business and offers a different service (training and support) to entirely new customers ( entrepreneur-managers). This new business requires different skills, skills and know-how. In new business of franchising, it is important to effective evaluation, documentation, support, training and consultancy to develop.
THE FRANCHISE feasibility analysis PHASE An essential step before a franchise business development program is in motion is an analysis of the concept and business model. The concept has not proven adequate to the market? How profitable are existing prototypes or company-owned outlets? Franchising does not solve existing problems, it will only reinforce it. Franchising is not a way to raise capital to get rich quick, or expand a franchise costs with existing problems. There must be sufficient profitability of the business model, so that royalties and other payments can be made and allow the franchisee with an adequate profit.
THE FRANCHISE STRATEGIC PLANNING PHASE A successful franchise development program begins with a solid plan - the basis for franchising . Often there is little or no strategic planning with new companies in the franchise industry. That is because they use the services of a franchise consultant or franchise attorney, where little or no attention is paid to critical issues of strategic planning. What is needed is not a traditional business plan, a rather thick document, which usually does nothing more than gather dust in a dark drawer desk person. More important than a business plan is a strategic plan - a vision of the franchise program with a limited number of concrete, achievable action steps.
THE FRANCHISE DOCUMENTATION PHASE If make your company done a good job in planning their number one priority, franchise documentation goals are visible. Proprietary assets (such as recipes, formulas, processes, branding, surgical techniques and customer data) must be identified and protected. A catchy and appropriate name, logo and lines are registered as trademarks or service marks marks.
A franchise operations manual and franchise training program, developed, often from scratch, to day-to-day operational skills to franchisees as well as ensure uniformity of the products and provide services. The franchise operations manual and training program curriculum must be developed or modified with a special focus. Certain topics, chapters and policies are used in the manuals for company-owned locations, for example, are totally inappropriate to create a franchise environment, significant franchise liability issues.
Finally, and only if all the above going on, one FDD Franchise disclosure document, similar to a security (stock offering) prospectus is prepared by a competent franchise lawyer. Doing it right can save and with a balanced and fair perspective going into the courtroom later. With a boilerplate or from on-line FDD template will almost certainly guarantee a visit to the courtroom down the road. Since these visits begin to cost hundreds of thousands of dollars and more, they are not cheap, and by far the cost of doing it right.
Training of the franchise management team linebreak linebreak when the documentation phase is passing by, going, as the exciting implementation phase begins. This is where the sparks fly, as a franchise is sold, new franchisees are taught and trained, paid and will start the opener. It is also used by most new franchises serious errors that they haunt for years or even decades to come.
The reason: Most new start-up franchise management teams have no idea how to properly operate their new business been trained, nor can they afford to rent a six-digit salaried person with franchise management experience. A practical solution: providing new franchises with solid franchise training and ongoing educational workshops, counseling as needed. In FDD, we offer this type of training and ongoing support to three decades of experience and expertise in franchise based best practices in the industry.
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