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Franchisors
1. The Scope
of our Assistance
When considering whether you
should franchise your business system or concept utilise
our experience to formulate answers to these basic questions.
- Is the business, service or product unique?
- How can it be differentiated?
- If the product or service can be purchased in the
open market what valid reasons are there for a prospective
Franchise Owner to buy a franchise from you?
- Has your company established a pilot operation,
developed the total franchise package and can it demonstrate
an ability to support the new Franchise Owner?
- Is your management team trained to build the network
of Independent business people and provide them with
the right level of technical advice, know-how and
backup support essential in a franchise network?
- Have you considered the legal obligations contained
within the Promotional Material, Disclosure Document
and Franchise Agreement?
- Have you in place protection of your trade name
or trademark or service marks? By whom and how adequate
is the structure within which they are they held?
- Has territorial criteria been considered? Is it
necessary?
- How important are retail premises? Is obtaining
the Head Lease an important factor?
- Have you prepared and can you supply Franchise Owners
with a comprehensive Initial Training Programme, Management
Plan, and Operations Manual etc.?
These are
some of the key areas that need to be addressed particularly
on the operational side and they do confirm that franchising
is a specialised business that requires special attention.
2.
Franchise System Development
Click
here to view the Franchise System Development diagram
3.
The Role of the Consultant
Any business or company wishing
to expand through franchising can read books, attend
seminars, and hold discussions with Banks, Solicitors,
Accountants, existing Franchisors or anyone else who
can offer advice. In the final analysis the intending
Franchisor will inevitably be advised to consult a specialist
- a Franchise Consultant.
To be of maximum
benefit the Consultant should be experienced and have
knowledge relating to: -
- Assessing and preparing the feasibility study and
business plan
- The determination of the optimum level of:
- Franchise fees
- On going royalty
- Option fees etc
- The experience to assist in the production of comprehensive
Operations Manuals.
- The skills to assist in the preparation of promotional
and marketing material to enable you to recruit and
properly evaluate franchise owners.
- The ability to advise on the mandatory Disclosure
Documentation, Franchise Agreement and the relevant
legislative requirements.
Above all,
the Consultancy staff have had operational experience
in managing and directing a franchised operation and
multi-site operations.
A lot of mystique
surrounds franchising unnecessarily. In reality it is
an extension of existing business and marketing concepts,
the difference is people - you do not employ them, they
work for themselves. It is a particular relationship
that does require expertise and it is in this area that
the Consultant can be of considerable value - if the
package has been constructed correctly at the commencement,
operational hurdles are minimal.
4.
Franchise Systems Recommend Steps to Franchising
Step
One – Feasibility or Overview
- A franchise business plan looks at your organisation
and its market.
- The franchise package you have to sell.
- The value of your franchise package.
- The level of financial return to both the franchisor
and the franchisee.
- The infrastructure for the establishment and development
of the franchise.
- Identify or confirm internal and external development
costs.
- Make specific recommendations for the development
of the system.
On agreement
we then proceed to the next stage of the system development.
Step
Two - How to Implement The System
- Identifying the timing, number and style of franchises.
- Establishment of location criteria.
- Developing market support systems.
- Development of design concepts of image.
- Development of training programmes and manuals.
- Registration of trademarks, Service Marks and Trade
Names.
- Infrastructure development.
- Advise on the possible need for new capital or additional
expertise
Develop the
blueprint for the total franchise system, including
marketing strategy.
Step
Three – Provision Of Tangible Tools
- The franchise agreement
- Disclosure Document
- Application forms
- Operations manuals
- Sales presentation aids
The development
and production of documentation to ensure compliance
with the Australian Competition & Consumer Commission
mandatory requirements
Step
Four – Operational Assistance
Assist in
the initial stages of the franchise launch to ensure
that performance criteria are being met and that all
systems are functioning effectively and efficiently,
including recruitment of suitably qualified franchisees.
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