Preparation and planning the franchised network
The crucial part of any expansion is
the planning stage as your build your franchise systems. If your launch
does not go well, or the first franchisees are unsuitable or dissatisfied, it
could cause you significant future problems. Your early franchisees should
be ambassadors for your brand but also for your franchise. They should be
suitable references to refer potential franchisees to. You will also need
to do financial forecasting and planning to ensure that your business
will have sufficient working capital.
Please see our related section
on the services that we offer to you during the Set-up.
Before franchising, it is important to review your own business
critically. The franchisees will be replicating your model and your
systems, so we advise you firstly to look at your own business and see whether
it is the best that it can be, and whether it has adequate systems, protections
and where improvements can be made.
Once you have ensured that your core
business is as good as it can be and is systemised adequately, you would be
advised to carry out research and planning. We can help you with a
feasability study and with financial forecasting and modelling. You can
then move on to getting your documents and systems for franchisees ready.
In general, the main core documents are the Franchisee Information Pack
(sometimes called the Information Memorandum or Prospectus) and the Operations
Manual which serves as the guidebook for franchisees once they have signed and
tells them everything about running the business and about being one of your
franchisees. In addition, you will need a full set of legal documents,
which usually include at least a confidentiality deed, a deposit agreement and
the main franchise agreement.
Together we can create a successful franchise network
Please see our Set-Up section
for more details on what you are advised to do during the preparation and set-up
phase and how Franchise Generator can help you.