Making the most of the Franchise Investment:
Obtaining a franchise has many attractions and can be highly successful. There are franchise opportunities available in many business sectors.
It provides the purchaser (The Franchisee) with a proven business model, strong branding and a set of processes to follow supplied by the Seller (The Franchisor).
A Franchise Agreement is usually for a fixed term of 5 years, then renewable, and involves an ‘Up front’ payment and an ongoing payment based upon a percentage of monthly turnover (known as a franchise fee).
This model has a number of advantages over other businesses and banks like lending to this form of enterprise, if lending is needed and have specialist departments established for the purpose.
What do we find?
Like any other business, it is down to the business owner (Franchisee) to develop the business applying all the necessary skills and acumen to make a success of the venture; essentially planning, marketing, sales and financial management.
Unlike other businesses there is a need to perform and meet the key performance indicators set by the franchisor. The Franchisor’s business will only flourish if they recruit the right people as Franchisees to replicate their business model and deliver the results consistently. Failure can result in the franchise not being renewed and the initial invest being lost.
How can we help?
Pro-actions support both Franchisors and Franchisees, helping them to improve their business results.
Working with Franchisees, developing their Business and Marketing & Sales Plans and helping them put in place sound financial, cash and Key Performance Indicator reviews.
So you have your marketing plan sorted out (if not, see our previous blog in this series for some useful pointers). Now you just need to make it happen.Read More
Those that plan … win! A good marketing plan dovetails with your business plan. Together they act as a navigation system for your business: assessing the conditions and setting the strategic direction.Read More
Our last newsletter focused on the importance of setting objectives and expectations for each of the roles in your organisation. Having done that it is vital to review performance against the objectives set.Read More