In this Blog we will outline the final 3 criteria of franchisability that follow on from the previous 2 blogs….
- Capital – While franchising can be seen as a lower cost way of expanding a business, that doesn’t mean that it is “no cost”. As a franchisor you will need the capital and resources to implement and run the franchise program. The amount of resources required will vary depending on how you approach this. One obvious way is to purchase documentation from FrankDocs. If a company is looking to sell one or two franchised units, the necessary legal documentation may be completed at costs of £40,000. If you are looking for an aggressive expansion, however, start-up costs can run £150,000 or more. And once the costs of advertising, audits, printing, marketing, and staff are included, you may require a budget of £250,000.
- Commitment to Relationships –Like any relationship the focus on building long-term relationships with others is highly beneficial. The franchisor / franchisee relationship is no different. Unfortunately, not all franchisors understand the link that exists between relationships and profits. Strong franchisee relationships enable the franchisor to motivate franchisees and their managers to provide a consistent level of products and services to their customers, sell franchises more effectively and introduce needed changes into the system more easily.
- Strength of Management – Finally, the Strength of Management is the single most important aspect contributing to the success of any franchise program. FrankDocs has found that the single most common contributor to the failure of start-up franchisors is understaffing or a lack of experience at the management level. In many cases, new franchisors will try to take everything on themselves. In addition to absorbing several new jobs for which the franchisor has little to no time or expertise. As the franchisor, you will need to exhibit expertise in fields in which he or she may have little or no experience: franchise marketing, lead handling, franchise sales, ad fund management, training, and multi-unit operations management. Many successful franchisors recognise that this is not their skill set and get expertise to undertake these tasks in a professional way that benefits the overall franchise operation.
That’s it… a total of 12 criteria over the last 3 blogs that cover the critiracal aspects that you will need to consider if you are looking at expanding in being a franchisor.
Feel free to email us at support@frankdocs.co.uk for additional information.
FrankDocs is the premium suppler of Franchise Documents, Legal Documents, Franchise Manuals, Franchise Templates and Franchisee Recruitment Documentation in the UK. Feel free to visit us at www.frankdocs.co.uk or by emailing support@frankdocs.co.uk
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