Based on many years of working within franchising helping franchisors and potential franchisors to franchise their businesses, consultants at FDS Southern provide a proven and effective system for guiding clients through a development programme based on three key phases.
Franchising your business can result in failure if you do not follow a carefully structured programme. Following an exploratory discussion and having been satisfied in principle that the business concept is sound and franchiseable, we then implement the strategy for success.
Phase One:
On-site Evaluation of Client’s Business Concept
Meeting Objectives:
- Full appreciation of core/related business activities
- Securing data on the entire business method
- Securing relevant financial data
- Brainstorming ideas on possible franchise structure
- Understanding client aims plus management resources
Securing data for a franchise development programme
We then undertake the agreed work programme over a three to four week period. This generates an Action Document comprising detailed guidelines for franchising the business.
Action Document:
- Key conclusions for successful franchising
- Key elements and itemised costs of franchise package
- Recommendation on licence fee to be charged
- Financial projections for franchisee territories
- Critical assumptions underlying these projections
- Type of franchisor support structure needed
- Ongoing fee structure between franchisor/franchisee
- SWOT Analysis on franchising the business
- Recommendations and ideal plan of action clearly identifying the best way to franchise the business.
Another meeting follows to present and discuss the contents, and clarify the best way forward. Phase 1 produces an outline skeleton for structuring the franchise. Phase 2 then creates all the necessary documents.
Phase two:
Preparing the Infrastructure
This second phase adheres to a work programme to produce the infrastructure for successful franchise development.
Phase 2 Work Programme:
- Intellectual property rights protection
- Identifying support services
- The franchise package
- Preparing financial statements
- Fixing initial and ongoing fee structure
- Production of an attractive franchise prospectus
- Producing the franchise information memorandum
- Producing the franchise manual
- Producing the legal documentation
- Designing franchisee training programme
- Finalising corporate image elements
- Strategy for franchisee recruitment
- Procedure for handling franchisee recruitment
In this vital implementation phase, we work with specialist franchise solicitors, trademark attorneys, accountants, PR practitioners, franchise advertising and editorial personnel, corporate design experts and other professionals to ensure the creation of an attractive and professional franchise offering.
Phase 2 Objectives:
- Credible and professional corporate image
- Clear and inviting franchise prospectus
- Legal agreement fair to both parties but leaving you in control
- Franchise manuals for entire business method
- Territories benefiting both franchisor and franchisees
After the second phase, the new business format should be ready for a professional and confident launch as an attractive Business Format Franchise.
Phase three:
Franchisee Recruitment
This involves marketing your franchise to secure quality prospects to own and operate the franchise. Consolidating the first phase of franchisees is vital to laying the solid foundations for franchising success.
We therefore stress the importance of allocating the franchise to parties of the right calibre rather than those just with the capital to invest. The key is helping you, the franchisor, to design eye-catching advertising, which portrays the opportunity accurately and effectively to attract quality prospects.
Having generated enquiries, we then teach your management team how to invest time and patience in handling your enquiries correctly, for it is all too easy to invest in promotions and then mishandle the enquiries – for example by using ill-informed call handlers, answering machines or sending out promotional material full of mistakes.
Our in-depth industry experience helps clients to avoid the common mistakes at every stage and move on steadily to enjoy the benefits of franchising development success.
