The ABC of Franchising

Franchising your business can result in failure if you do not follow a carefully structured programme. Following an exploratory discussion and having been satisfied in principle that the business concept is sound and franchiseable, we then implement the strategy for success.

Phase A: On-site Evaluation of Client's Business Concept Meeting Objectives:

• Full appreciation of core/related business activities
• Securing data on the entire business method
• Securing relevant financial data
• Brainstorming ideas on possible franchise structure
• Understanding client aims plus management resources
• Securing data for a franchise development programme

We then undertake the agreed work programme over a three to four week period. This generates an Action Document comprising detailed guidelines for franchising the business.

Action Document:

• Key conclusions for successful franchising
• Key elements and itemised costs of franchise package
• Recommendation on licence fee to be charged
• Financial projections for franchise owner territories
• Critical assumptions underlying these projections
• Type of franchisor support structure needed
• Ongoing fee structure between franchisor and franchise owner
• SWOT Analysis on franchising the business
• Recommendations and ideal plan of action clearly identifying the best way to franchise the business.

Another meeting follows to present and discuss the contents, and clarify the best way forward. Phase 1 produces an outline skeleton for structuring the franchise. Phase 2 then puts flesh on the bones.

Phase B: Preparing the Infrastructure
This second phase adheres to a work programme to produce the infrastructure for successful franchise development.
Phase B Work Programme:

• Intellectual property rights protection
• Identifying support services
• The franchise package
• Preparing financial statements
• Fixing initial and ongoing fee structure
• Production of an attractive franchise prospectus
• Producing the franchise information memorandum
• Producing the franchise manual
• Producing the legal documentation
• Designing franchise owner training programme
• Finalising corporate image elements
• Strategy for franchise owner recruitment
• Procedure for handling franchise owner recruitment

In this vital implementation phase, we work with specialist franchise solicitors, trademark attorneys, accountants, PR practitioners, franchise advertising and editorial personnel, corporate design experts and other professionals to ensure the creation of an attractive and professional franchise offering.

Phase 2 Objectives:

• Credible and professional corporate image
• Clear and inviting franchise prospectus
• Legal agreement fair to both parties but leaving you in control
• Franchise manuals for entire business
• Territories benefiting both franchisor and franchise owners

After the second phase, the new business format should be ready for a professional and confident launch as an attractive Business Format Franchise.

Phase C: Franchise owner Recruitment
This involves marketing your franchise to secure quality prospects to own and operate the franchise. Consolidating the first phase of franchise owners is vital to laying the solid foundations for franchising success.

We therefore stress the importance of allocating the franchise to parties of the right calibre rather than those just with the capital to invest. The key is helping you, the franchisor, to design eye-catching advertising, which portrays the opportunity accurately and effectively to attract quality prospects. Generally, our clients use The Franchise Magazine, which when used correctly can recruit your entire network of franchise owners. The combination of advertising, editorial, extensive websites and use of the FDS Central Database has enabled many clients to succeed.

Having generated enquiries, we then teach your management team how to invest time and patience in handling your enquiries correctly, for it is all too easy to invest in promotions and then mishandle the enquiries - for example by using ill-informed call handlers, answering machines or sending out promotional material full of mistakes.

Our in-depth industry experience helps clients to avoid the common mistakes at every stage and move on steadily to enjoying the benefits of franchise development success.

Don't leave the success of your franchise to chance

Why choose FDS?
Since 1981, Franchise Development Services (FDS) has been assisting Irish, UK and international franchisors in the development of their franchise networks and has built a reputation as one of the world's leading franchise consultancy groups.

FDS Consultants Gordon Patterson and Gary Rigby have a combined experience in franchising of over 40 years. Gordon has consulted for businesses based in Ireland for some 20 years and helped Irish companies to expand their operations successfully through franchising. He is currently actively involved with companies in both Northern and Southern Ireland. Gary was a member of the senior management team with a major national franchise brand for some 15 years. In this capacity he was involved in all aspects of implementing the franchise development programme.

How can FDS help?
We will advise you, and provide full practical assistance, to help you realise the goal of establishing and maintaining a successful franchise network - from conception through development, to implementation.

At the conception stage we can conduct a complete evaluation analysis resulting in a set of recommendations outlining a Franchise Development Programme suited to your business concept. During the development stage we will work with you to put in place the necessary infrastructure requirements, attending to all areas critical to success, before starting the recruitment of the franchise owner network.

Finally, when the franchise is ready for implementation we are well equipped to help you identify the most cost-effective strategy to generate a good flow of prospective franchise owners and to develop a strong network.

Reported by Gordon Patterson