Is Franchising the Right Choice?
Aug. 6, 20142:00 - 3:00 p.m.
Heartland Payment Systems is the Lead Sponsor of all RES events.
The ORA Restaurant Education Series (RES) provides members free access to educational events that help them sustain and grow their businesses and are developed based on member feedback. RES events support a key ORA initiative: the education of our members.
Is Franchising the Right Choice?
Questions you must answer with “yes” What is the best model for me?
◦Direct franchising?◦Master licensing?
Is Franchising Right for Me?
David Roemer, ActionCOACH
34 Years in the restaurant industry Over 20 of those as a liaison between
franchisors and franchisees◦ Both sides of the fence◦ What each side needs for success◦ Difference between operating restaurants
and franchising restaurants
A Little About Your Speaker
Your Franchising To Do List
Consistent excellence Fully documented systems
Operating Hiring and training Marketing
Proven marketing/consistent cash flow Great team and culture Running on “auto pilot”
Getting Things in Order
Who will prepare it?Your modelYour agreements
◦Franchise Agreement Rights and terms Costs – initial, ongoing, periodic Covenants
◦Development Agreement Franchise Law and Code of Conduct
Franchise Disclosure Document
Fully tested and measured Documented results Materials
◦ Style Guide◦ Templates
Marketing contribution/support
Marketing Systems
Who is your ideal franchisee? Define your target market Sales team – internal or external? Your process – testing and measuring Balancing sales and operations
Franchise Sales
Initial training◦ What, how, where?◦ How long? ◦ By whom?
Certified Training Centers◦ Criteria◦ Certification, validation, monitoring
Field Support◦ Who, how?◦ Standards/brand protection/food safety
Training & Support
Food suppliers/standards/quality control Signage, menus Furniture, fixtures and equipment (F,F & E) Packaging Marketing material POS/BOS Uniforms
Suppliers & Alliances
New product development◦Process◦Testing Franchisee participation Documentation
◦Sales/rollout process Image changes/remodels
Innovation
Again you need a documented process Site approval Standard plans and approvals Support during construction Opening support
Development
What to keep:◦ Agreements◦ Evaluations◦ Food safety information◦ POS/BOS information/audits◦ Franchisee financial statements◦ Communications
System(s) for documenting across multiple people
Franchise Record Keeping
Greed – Short-term vs. long-term Poor franchisee selection Poor/inadequate training and Support Lack of innovation/lack of process Growing too fast
Common Mistakes
Is Franchising the Right Choice for you?◦ Even if it is not, there are benefits to running your
concept like a franchise Find people who can help
◦ Professionals◦ Counselor/coach
Have the conversation with your spouse/ partner/leadership team
Sign up for your Free Strategy Session◦ [email protected]◦ (740) 909-4138
Next Steps
New Restaurant Education Events are being planned. Go to www.ohiorestaurant.org/res
to register or to check out past RES events!
Thank you!
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