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WHY IS FRANCHISING SUCCESSFUL?
https://www.youtube.com/watch?v=Ie8qJuXYN7w&list=RD6fidL51oakg&index=4
WHY IS FRANCHISING SUCCESSFUL?
We are BRAND DRIVEN
and PEOPLE OF
HABIT!
FRANCHISINGA network of interdependent business relationships that allows a number of people to share:
1. A brand identification
2. A successful method of doing business
3. A proven marketing and distribution system
Single-Unit Franchise AgreementAn agreement where the franchisor grants the franchisee the rights to open and operate ONE franchise unit.Multi-Unit / Area Development/Exec Franchise An agreement where the franchisor grants a franchisee the rights to operate MORE THAN ONE unit.Master Franchise AgreementAn agreement where the franchisee has the right and responsibility to sell franchisees and support those franchisees in a particular geographic area. Shared royalties and franchisee fees.
Options
FDD / Disclosure Statementthe Franchise Disclosure Document is the document that provides the information about the franchisor and franchise system to a prospective franchisee. Franchise Feethe payment given to the franchiser for joining the network. It can be seen as an entry fee paid for the “secrets of the business” and a territory in most cases.Royalty Feerepresents the amount the franchisee pays the franchiser every month (or whenever agreed) for commission of its sales. In return, the franchiser provides continuous training, market studies and release of new products.
FTC Regulates Franchising
ADVANTAGES DISADVANTAGES
Business ExpansionBuying PowerOperational Convenience
Franchisee’s Contribution
Motivation & Cooperation
Initial Costs, LegalFranchisee’s
Financial RestrictionsFranchisee Recruitment,
Franchisee Selection Required
Communication & Culture Building (Relationship Mgmt)
For the Franchisor
ADVANTAGES DISADVANTAGES Established Concept &
Model Tools for Success
Technical & Managerial Help Standards & Quality Control
Minimum Risk Less Operating Capital
Access to Credit Comparative Assessment Research & Development
Brand Power Advertisement & Promotion
Shared Best Practices Economies of Scale
i.e. Buying Power, Supplier Rebates
Unfulfilled ExpectationsBad fit – Poor Choice
Cost of ServicesPotential Over DependenceProfitability, Termination & Renewal arrangements not in
line with goalsCulture (+, -)
Wide Variety of Business Models!
No Correlation b/w Costs of Franchise & Potential Revenues & Profitability!
How much in, how much out , in what
time frame?
1. Through an initial telephone conversation and a series of Questionnaires, we help you determine if business ownership is right for you.
2. Our Franchise Selection Questionnaires provides information to help us understand your preferences, objectives, lifestyle and financial goals.
3. The Confidential Questionnaire provides information concerning work history, education and financial. Like a resume, it helps us identify suitable franchises, and it is used to qualify you for their opportunities.
4. Based on your information, a “Candidate Profile” is developed and discussed with you. If we mutually decide to continue the search for a franchise opportunity, we begin our research on your behalf.
5. We compare your Profile and goals to the selection criteria provided by franchisors to determine which franchises are worthy of further investigation.
6. We provide you with a “Franchisor Profile” of the best suited companies and conduct proper introductions to top franchise executives.
7. We submit your profile . Once you are accepted, and the process begins (right), we coach and advise you throughout. We work with you through the discovery of various concepts until you are offered a franchise.
8. Close to or on Discovery Day, you may be offered the franchise opportunity. Once offered, you then decide upon investing and becoming a franchisee with a specific concept.
Our Process Franchisor's Process
Franchising can be an excellent vehicle to expand and grow your business.
Franchising can not only provide expansion capital, it can reduce risk and enable your company to expand much more rapidly than using corporate resources.
Most importantly, expansion through franchising can provide a motivated management with a vested interest in your company’s success.
Developing a marketable franchise system that’s competitive with other business concepts can be expensive and time-consuming. This crucial step has to be done correctly with experts and consultants.
Help you determine the “franchisability” of your businessDevelop a franchise model that will work for your business
Bring your franchise concept to market.
Feasibility Study
