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.
In or last article, “Measuring What’s Important” we discussed key performance indicators or KPIs. There are lagging KPIs such as financial measures that tell you what just happened and leading KPIs that indicate what your financials are likely to look like.Read More
Following on from our previous blog in this series, “The Most Important Thing”, the next step is to translate your goals into action. For this, setting your targets and measuring your performance against them is vital to making them happen.Read More
What do you want to achieve in your business? Every owner manager had their reasons for why they started out on that journey – what are yours? And more importantly, are they still valid, are you on track, or are your hopes and desires being frustrated?Read More