In a recent few years, small business franchise opportunity has become a very important & profitable business model to invest in. There are a lot of people who now want to invest in the franchising business and if you are a franchisor who needs more people to invest in your business; here are a few things that you need to consider and think about before you start on the lookout.
• The first thing that you need to do is become familiar with the Franchising Code of Conduct, rules and regulations of the franchisee agreement. Then determine your strengths and weaknesses and devise a plan to overcome them. If you have any experience in running and managing a business then jot them down in your portfolio. Consult a good franchise lawyer and an accountant before you start to make the actual plan.
• What is the product or service that you are selling and what is the growth potential? If you can prove your point here then you have cleared your first test. Where is the manufacturing facility and what are the supply arrangements; these are to be planned properly.
• A well construed business presentation has to be developed with details like what is your extension plan? How many outlets are you planning to open? Having and presenting a documented idea about what is the market structure and predicted market base would be. Are you interested in expanding within the state, country or internationally? Which are the responsibilities that you will take? For an example; will you take care of marketing? What is the structure of your company?
• You must decide the royalty fees that you are going to charge and what it would include. If you are interested in having a marketing fund then what would be the contribution from the royalty? Will it be fixed or percentage based?
• The documents that you should have in place: An operations manual that documents the process of running the business; duties and responsibilities of every individual associated with it. Sales manual for people who are into sales and customer service manual that will help in training and a marketing manual that has the detailed marketing plan. Also a plan about how you are going to administer the royalty fee.
Apart from everything mentioned above, franchise business also requires extensive planning for recruitment, training, what kind of work culture you have, and above all, the determination to become a successful franchise entrepreneur.