Quite simply, if you are going to convince others to follow your system, you must have something worth emulating. People purchase a franchise to make money. If your idea is not yet profitable, we recommend you spend more time researching and developing your current business model until it is a profitable prototype to replicate. Prior to moving forward with FranchiseNow, your efforts should focus on increasing the profitability of your current business.
2) Do you have a strong management team capable of providing ongoing support and training to prospective franchisees?
At the core of any successful franchise business you will find strong leadership and support personnel. The onus is on you, the franchisor, to insure the success of your franchisees. Your management team should be comprised of internal officers and directors as well as qualified consultants who understand both the particular industry in which the company operates and the legal and business aspects of franchising.
How FranchiseNow can help: Assembling a strong management team can be a daunting task. Rather than learning through trial and error, let our experienced consultants guide you through this critical process. Our Franchise Development Team will assess your management needs, refine your current team, and build the strong foundation that will lead to a successful franchise.
3) Do you have sufficient capitalization for both the launch of the franchise and ongoing training and support?
Franchising often requires significantly more capital than most people estimate. Whether you are in the early planning stages or final preparations, maintaining access to sufficient capital can be the difference between success and failure. In your first year of franchising do not expect to see a tremendous amount of profits from your sales. Royalty income will be minimal and much of income from franchise fees will be utilized for training, marketing and often, paying down debt.
How FranchiseNow can help: The FranchiseNow Platinum Complete Package comes with a complete business plan template that will assist you in mapping the road to a viable franchise system.
The Franchise Development Team will assist you in writing your business plan. Additionally, we will provide valuable insight on where and how to find the capitol (venture capitol, equity partners, lending institutions, etc). We also assist you in calculating what capital reserves will be necessary to keep your franchise afloat during the crucial first years. All of our consultants have been on the start-up side of franchising and have first hand knowledge of this unique and exciting challenge.
4) Do you have a distinctive and protected trade identity consisting of registered federal and state trademark/service marks, uniform trade appearance, signage, slogans, and trade dress?
The foundation of every successful franchise system is the franchisor’s intellectual property that has been developed, improved, and expanded over the years to create a unique concept, product, or service readily identifiable by consumers. The intellectual property of a franchise system consists primarily of trademarks and service marks, trade secrets, copyrights, and in some cases, traditional and business methods or process patents.
How FranchiseNow can help: The FranchiseNow Platinum Complete Package provides instruction and guidance on protecting the intellectual property of your franchise system. Some topics covered include:
- Trademarks and Service Marks
- Types of Marks
- Protections Afforded by Registration
- Overview of Registration Process
- International Trademark Protection
- Maintaining Rights in Trademarks
- Protecting the Trademarks Under the Franchise Agreement
In addition to the abovementioned items, the Franchise Development Team will walk you through the registration of you Federal Trademarks/ Service marks and evaluate your existing Intellectual Property portfolio.
5) Do you have proven methods of operation and management compiled in a comprehensive operations manual?
Perhaps nothing requires more time and effort than the compilation of an operations manual. Every detail of your business from daily administrative tasks to marketing themes must be communicated through this extensive document. A well developed operations manual is the heart and soul of the franchising program and deserves relentless attention to detail.
How FranchiseNow can help: The Gold Standard Package | Service & Retail Edition and Platinum Complete Package | Service & Retail Edition both come with a comprehensive Operations Manual template written specifically for the service industry. The manual was written by industry experts with first hand experience in development of a Service Based Franchise Programs. We have recently added manuals and package designed specifically for restaurant and food service franchisors as well.
The Franchise Development Team will partner will you in creating a customized Operations Manual capturing every process, procedure, and protocol insuring standardization throughout your franchise system. Complimentary services include professional copyediting and printing of the document. During the Franchising Workshop™ we will review the Operations Manual in its entirety proving valuable insight and or development considerations.
A properly designed training program will prepare your franchisee for the successful operation of a franchise unit. In practical terms, this includes communicating the key elements of your business to your franchisees in an efficient manner. Often the operations manual forms the outline of the information you want to convey.
How FranchiseNow can help: The documentation included in both editions of the Platinum Complete Package covers the pragmatics of designing an effective training program.
A franchisors ability to duplicate the level of success and quality offered by its prototype facility is the hands of the field support staff. For this reason, field support staff should be carefully selected and trained. They should know the intricacies of the franchise business, be sensitive to the needs and concerns of the franchisee, and be diplomatic in their dealings with franchisees.
8) Do you have comprehensive legal documentation that reflects the company’s business strategies and operating policies?
The FDD must be prepared in accordance with applicable state and federal disclosure laws. Franchise Agreements should strike a delicate balance between the rights and obligations of the franchisor and franchisee. A well drafted FDD and Franchise Agreement is paramount for your business. The time and effort placed into these two documents will have a direct result in your ability to stay out of the courtroom.
How FranchiseNow can help: The restaurant and service industry versions of the Platinum Complete Package come with a professionally drafted FDD and Franchise Agreement templates. Both programs also include: Unlimited access to our FDD Database from existing franchisors, our Franchise Registration Guide, SBA Central Registry of Franchise Systems, state franchise laws, and more.
Our Franchise Development Team will help you to brainstorm about your specific needs for these documents, and help gather all the detailed information that’s needed for each one. We can provide examples and templates of these documents, saving both you and your lawyer valuable time. What’s more, we’ll help you understand the role of the FDD and License, and how they relate to your operations manual, marketing, training materials and more.
Without a proven track record of market demand, you are merely selling potential. Franchisees want to know that a steady supply of buyers exists for their product or service. Additionally, your product or service should not be subject to rapid shifts of consumer preference. The prototype will act as your proving ground for establishing the presence of a strong market demand.
How FranchiseNow can help: The Platinum Complete Package comes with a complete Business Plan template that with assist you in demonstrating the value and uniqueness of the products and services that your franchisees will provide.
Our Franchise Development Team can create a dynamic business plan based on your existing model that demonstrates the viability of your business.
A proper understanding of your competition is critical for the success of your franchisees. It is imperative that you have an up to date knowledge of both the competing franchisors and independent businesses in your industry. This will help you understand the advantages of your proprietary services and products that give you a competitive advantage.
11) Do you have established relationships with suppliers, lenders, and related key resources/vendors?
Established relationships with your key suppliers and vendors will help your franchisees operate efficiently. This information is outlined in your Franchise Agreement and Operations Manual. You will also need to establish relationships with leasing companies that will provide capitol for equipment and supplies. If you intend to lease equipment directly you will need a well drafted lease agreement. Finally, registration of your franchisee system with the SBA will help insure that you potential franchisees can secure to capitol to cover the initial franchise free and related expenses.
- Contact information to the Equipment Leasing Association of America who will provide you with a list or leasers specific to your industry.
- Information on the two types of leasing that may be beneficial to you as a franchisor, operational leases and finance leases. It is important to understand the in and outs of both types to maximize the growth and or marketability of your franchise system. Your FranchiseNow Package will cover the following topics plus more.
- Types of Leases
- Who Should Lease
- The Process
- Lease Terms
- When a Lease is not a Lease
- Where to Find a Leaser
An effective franchisee profile and screening will identify the minimum financial qualifications, business acumen, and character that you are looking for in a potential franchisee. It will assist in weeding through the see of applicants that will inevitably contact the well marketed franchise system.
How FranchiseNow can help: Both editions of our Platinum Complete package come with the following customizable forms:
- Franchisee Request for Consideration: A form designed to aid you the franchisor in qualifying potential franchisees.
- Due Diligence Checklist: Provides you with a step-by-step guide to the items you prospective franchisees will need to understand, complete, or schedule in making an informed business decision about the franchise opportunity. You will give this to your prospective franchisees after inviting them to a Day of Discovery.
- Franchisee Confidential Application Form
- Background/ Credit Check Authorization for Release of Information A document signed by your potential franchisees allowing you to conduct a background investigation with credit check.
- Application Data Sheet: Appended to the Confidential Application will provide for additional information gathering in making your final decision.
An effective system for report and recording keeping will allow you to evaluate the performance of your franchisees and insure royalties are reported accurately and paid promptly.
How FranchiseNow can help: The Platinum Complete Package comes with the following customizable forms.
- Franchise Fee Reporting Form Weekly/ Monthly/ Yearly. A smart form that will allow your franchisees to easily calculate royalties and track sales in a unified format.
- Notice of Default to Franchisee. A form letter that is sent to franchisees in the event of late payment.
As a franchisor the onus is on you to continue to provide new and refined processes and technologies for use by your franchisors. Merely maintaining the status quo is a surefire way to stunt the growth of any franchising system.
An effective communication system is one that facilitates a continuing and open dialogue with the franchisees that will encourage franchisee/franchisor relationships while reducing the chances for conflict and litigation.
Your franchisees will depend on you for effective marketing campaigns. These should be based on the tangible successes of your own marketing program. Your franchisees must have the confidence you have gone before them, learning from the successes and failures of different techniques. Additionally, you must develop a marketing campaign designed to recruit new franchisees. This requires a completely different approach.
How FranchiseNow can help: Our Franchise Development Team will evaluate both your internal and external advertising and marketing. We will help you develop a national, regional, and local marketing program catered to the unique needs of your industry. Furthermore, we will develop your key marketing avenues including website, graphic design, marketing collateral, and documentation needed to recruit prospective franchisees.