Designing and Developing a Franchise Program
At first glance, franchising can appear complex but that isn’t necessarily the case. Franchising is simply put a method of expansion. The franchisor before making the decision to invite franchisees should ensure that they take stock of the business’s unique attributes and characteristics and how it can be made into an expandable model. There are many considerations facing a franchisor while creating a franchise system. Some of the pivotal things to remember are:
- The process of integrating franchising into the business’s current operations. - The selection of the most suitable franchisees and determining how they can complement the existing business - The process of building strong relationships with the franchisees of the business and eventually developing a stronger ecosystem. - Dealing with the existing competition successfully by developing effective advertising and marketing campaigns. - The type of training and support that can be afforded to the franchisees. - The development of markets; types of locations used; defining geographies and supporting the brand. - The types of cooperative programs that can be introduced and utilized including cooperative groups, equipment and other financing options if applicable - Exit strategies and long term opportunities. - Obligations between the franchisors and the franchisees during and after the course of the franchise relationship. - Fees charged and the return on investment earned by the primary stakeholders of the business. - Selecting options that support the company’s core values and culture and create a healthy environment.
It is only after exploring the above mentioned choices that a franchisor can make a decision about going ahead with franchising their business. The collection of this information is perhaps, the cornerstone of the decision.