The essence lies in defining and setting specific goals. The success of a franchise network directly depends on how effectively franchisees work. If their activities are unprofitable or they soon close their business, the reputation of the entire company suffers. Moreover, all the efforts of the franchisor are reduced to zero.
Therefore, it is important to coordinate the actions of all franchisees based on a clearly drawn up business model. The franchisor needs to describe the action plan in detail and point by point and explain it to its partners. It is not worth limiting yourself to just a step-by-step manual.
It is necessary to first decide on the level of support business opportunity seekers email list that will be provided to future partners. It may be necessary to hire separate employees to provide such assistance. Also, the franchise owner should consider whether he will be able to supply goods and required equipment if necessary. If personnel are involved in the work, it is advisable to train them to work with partners in order to avoid incompetent service.
In addition, it is necessary to determine the advantages of this business and think about brand recognition. Competent conceptual planning is half the success of franchising.
Step 2. Calculate profitability
The potential of the selected industry and the company's prospects are assessed at the very first steps. It is also necessary to assess the degree of competition in this area of activity. It is necessary to calculate profitability, because without facts of business profitability, no franchisee will simply trust the owner of the network being formed with their funds. The indicators must be accurate, clear and understandable.
Here it is necessary to determine the terms of the franchise, in particular, to determine the amount of mandatory payments (lump sum payment, royalties, etc.).
We calculate profitability
Step 3: Restructure your business
At this stage, you, as a future franchise owner, must seriously restructure the business. This means that you will need to draw up a clear business plan for the future network. It is advisable to use the services of experienced lawyers, who will also draw up all the necessary documentation. A competently drawn up agreement with the franchisee will protect you from possible problems in the partnership. This document can also be created in the patent office. Then it remains to obtain the necessary permits from the supervisory authorities (tax service, fire supervision, SES).
Of course, as with the launch of any major project, some financial investment will be required. If you do not have your own available funds, you can use borrowed funds by contacting a bank.
The staff will also need to be reorganized. At a minimum, there should be employees trained to interact with and assist inexperienced franchisees.