Franchising has proven itself the most successful and profitable business model. Thanks to the some largest companies in the world – McDonald’s, Burger King, Coca Cola, KFC, RE / MAX, Holiday Inn, Carrefour, Hilton, Sheraton….who choice to grow through franchising – Naturally, it wasn’t by chance, but because of the many advantages that it actually provides and finally given to each Franchisee invest in their business. The franchisee is not just a worker and owner of a small part of their chain but also strive for the overall success of the company. Every success of the company creates his success while his every achievement is an achievement for the whole company. And this is only done when franchising works through Standard Business Models. By many accounts, the franchise “industry” has one of the privileged to React Favorably Even in the Down Economy. The understanding of franchise model coupled its popularity in period of globalization and now the industry booming around the world. This is perhaps one of many reasons that more and more businesses, across a wide array of industries, are developing Franchise Opportunities to meet their growth objectives.
Franchise Systems Significance
Many brands franchising for the first time are attracted to the illusion of signing up franchisees at the earliest and growing their outlets in the shortest time. Many ask their lawyers to prepare a franchise agreement, which they quickly use to sign up franchisees. The end result is normally not favorable, sometimes disappointments, blames, franchise roll out and losses too. A number of case studies exists which grew this way and the system collapsed / forced them to revert to the brick and mortar model.
Beware, a franchise agreement is only one of the many legal documents used to protect a franchise system. While stepping into Franchise System is like developing a New Business with forward integration of the current. Same like all, it starts with focusing on structure, Viability, Vision, Goals and valuable resources that can require considerable Time, Expense, and the Capital.
Franchising your business can be a very successful method for expansion if you take your time and do it properly. Are you considering to turn your business into a Franchise?
How to Franchise?
Here are some considerable elements that your business should have before venturing into the World of Franchising; the first parameter is to check deeply whether Your Business is suitable for franchising? All business can’t do franchising – the switching process from a standard model to the franchise model aren’t feasible for each.
The base of your Franchise strategy starts with the evaluation of existing system;
- Does your business has Strong Brand Identity?
- Does your business has long history of Operations?
- Does your business has Established Policies and Operating Systems??
- Does your Business has essential features that can be standardized for Duplication?
- Is current Business Profitable?
- Whether it can create value for both Franchisor and Franchisee?
The answers of these questions will determine the SUCCESS chances of Future Franchises and comprehensive replies require a detailed study and assessment of your business including product / services, activity level, management structure and financial parameters.
We at Franchisingkey have developed a team of franchise specialists that can evaluate your business in every aspect upon latest parameters and define the key elements which suit your business the best as Franchisor.
The next necessary step is the development of Franchise Business Plan.
This is the most strategic plan in franchising process – The finer you tuned this model, the more successful you will be and your franchisees too. As a Franchisor, you need to define Expansion Targets, Markets, Product / Services to offer, the Rights & the Obligations, Training, support, Marketing plan, Systems to in place, Franchise sales, Resales, up-front and on-going Fees, Pilot Franchising plan etc.
In developing a franchise it is very important that you prove out your franchise concept through pilot project / franchise companies – before you start granting Franchises.
Important Fundamental in developing a strong franchise system, involves the documentation of policies and procedures in place for operating the business. The franchisor may create and name those whatever necessary while classic famous documents of franchising conclude Operational Manual, Brand / Marketing Manual, Franchise Manual, FDD, Fit-out Manual, Supply Chain manual and Training Manual – just to name a few.
Whether the business, at the unit level, or have multiple locations, it is important to place the system at all levels designed for franchising. Product / services standards, Procurement, technical and accounting systems, Peoples, Branding everything to meet the expectations and experience of Customers / Franchisees. When consumers walk into any branded location, they have expectations of what their experience will be like and same at all locations.
The Model testing and its examination, in fact; ensures deliverability of the consistent activities for future franchisees and sometimes suggest few amendments to be made. It also clarifies the impact of franchising on your existing business structure. In short words,
“Before there is a Single Franchisee, there has to be a Franchisor.”
Franchise Induction / Recruitment
Many small business owners successfully managing franchise systems on their own, but if you plan to pursue rapid growth. You need a franchise-specific personnel who not only develop franchise sale plan but manage and administer the system. Define the target group/groups of potential franchisees and channels to reach them. Create a Presentation, Franchise website, Brochure and all additional documents needed for good performance.
Managing the Franchise System
It’s simply not enough for you to sell franchises to call yourself a franchisor. Expansion of the system is only one goal. The management of a growing and profitable system is your long-term objective. You need RIGHT PEOPLE in place to oversee the operation and growth of the system as a whole. Require Managers to assist the franchisees in day to day activities as people choose the franchise due to limited knowledge about running the business. And, it is the franchisors job to provide support and other services to franchisees to live them profitable and satisfied.
“The more successful your Franchisees are, the easier to Sell More Franchises.”
What We Do!
We recognize that defining attributes for your Ideal franchise are vital to the future growth and success of your business. We know where and how to find them, connect to your concept efficiently as quickly and efficiently as possible. FranchisingKey being established to help potential franchisors to Develop, Improve and Support Franchise Network in Pakistan.
We offer a Comprehensive Franchise Business Support program that include;
- Franchise System Development
- Franchise Sale
- Franchise Operating Partner
We’ll dedicate one of our Manager to guide you through your business venture, work with your team and develop a business plan to help you achieve Growth and Success.
Are you a growth-minded Businessman and looking to develop Franchise systems to Start Franchising in Pakistan? We can guide and assist. Please contact us Online, through phone call or email at email@example.com