Let’s the Journey Begins:
The Journey of business owner to franchisor is completely undergone an Analyzing Some Criteria’s. The first step begins from here only, the transformation from business owner to franchisor must satisfy some Queries, once if they are satisfied only it can able to come out with flying colors and it would be great success to both the franchisor and franchisee. The main thing is feasibility which includes whether the business can be able to franchise or not.
We at Strategizerencourage you and provide you with a preliminary assessment of your franchisability and, if merited, schedule a consultation to go into greater detail on issues such as:
- Is your business franchisable?
- Is franchising your best strategy?
- If not, what is the best strategy?
- What is involved in implementing that strategy?
- How long will it take to implement and what will it cost?
Goals – Vision, Mission:
It is essential for the franchisor to understand and also to create, a set vision for the brand. Vision means refers to putting down the reason for the brand to exist and final goal for franchise. For example. the vision statement for a Foods and Beverages would be – to serve the best. At a global level and not only in the home country.
The Mission for the brand would be how to take measurable steps to achieve the vision statement of the brand. There are short -term goals for a franchisor. (i.e.) setting up your own franchises in your locality, city. Regardless, in which the brand ruminated and later looking at expanding to other states and cities in India.
The goals of the franchisor must be to understand the vision and mission of the brand and create plan in order to work and achieve the mission and vision of the brand by expanding via franchise or setting up their own stores.
Once the brand is able to set the vision, mission and the goals for the brand and also has established to give franchise and work on the goals of the brand. The brand has to now look at Requisites of brand registration. (i.e.)
Requisites of brand registration
Brand Name:Refers to having a unique name for the brand, which would be in sync with products or services they are known for. Doing this will help the brand to be on a high of the mind. Also, this will create an identity in the industry.
Trade Mark:This refers to an Acceptable sign, design, or expression, which identifies products or service and even the brand name of a particular company. This secures you identity from unethical use. Trademarks used to identify the services referred to as service marks. The trademark own we can be an Individual, business organisation or any legal entity.
Before Expanding via the franchise mode, this is the most important step. It is good to have an existing store which has been functioning for over a period of months. Doing this will help the franchise consultant build a franchise plan as per the functionality, workflow of the further franchises which would be let out.
It is always advisable to first establish the outlet and monitor the functioning of it. This will help you analyzing the performance of the brand and the improvements required.
Steps Included to Franchise your business.
Franchise Business Plan:
While designing the franchise plan, your brand should be franchise ready for franchise business. The major segments to focus on while planning is – positioning the audience, defining the demographics and more. The business should be in a position to fulfil the demand of the customer as per the demographics of India.
Franchise Financial Model:
As now you have defined your audiences and demographics, its critical to set a financial plan for your franchising. Outline the financial projection which is beneficial for your business and the franchisees. Draft the required investment for setting up a new outlet of your brand. Furthermore, calculating the return on investment, revenue generation, profits and other financial requisites.
Basically, there are four different types of franchising models this includes FOFO, COCO FOCO, COFO. You can choose the most ideal model for your brand.
The decision should be made while considering the financial plan, audiences and demographics.
Franchise profiling refers to defining the roles and responsibilities of each franchisee and mentioning their task to performed on a timely basis be a every day, fortnight et. The franchisor should understand the skill sets requires for the business.
It is important for the franchisor to calculate which is the best platform to market their brand. Also understand, what marketing activities are to be done, in order to get a prospective lead for their franchise. Franchisor can make use of franchise portals, exhibitions, giving an ad in newspaper and franchise journals.
The franchise agreement is the most meant document between the franchisor and the franchisee therefore. The franchisor should prepare franchise documents in such a way, which mention a wail authority to both the parties of the franchise to handle the franchise independently.
The franchise manual refers to a document drafted by the franchisor for the franchisee to understand the functionalities of the franchise. It also should include the details related to the operations of the franchise. The manual will define the type of training provided to the franchisee; and the training details for the employees or staff appointed by the franchisees. This will guide the franchisees and their staff about the company ethics, business type and their roles and responsibilities.
It refers to the fact that is the franchisor commitment towards making the franchises function successfully. It is vice-versa as well. A consideration of both the parties is a must for the brand to establish itself successfully as well as sustain in the market, and standing strong against the test of times.
Analyzing the intricacies of a franchisor and franchisee relationship is hard. The role of franchisor and franchisee is equally important to establish a brand successfully in the market and also run it with equal importance. With the above points, you can understand the importance of franchisor and franchisee in a franchise business.
We at Strategizer with more years of experience and having worked with hundreds of brands. we exactly know what would be the best for your brand, be it developing a franchise model, working out agreement. hiring and training workforce
We also provide Franchise business chennai support in developing a marketing manual, franchising profiling and a lot more.