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Tips for success: The Ultimate Franchisor check list

The first notion that occurs to an entrepreneur who has made it decently in whatever industry they started their operations is the extension of their business. A corporation can grow by opening a company-owned location or by providing franchisees. The entrepreneur starting out is advised to franchise for growth.

By franchising, a firm can avoid many of the practical issues that arise from opening many sites for its outlets. These issues might include the difficulty in having financing approved, locating an appropriate location, comprehending the local consumer base, and maintaining and operating the business. The franchisee would be a one-stop shop for any potential issues, such as handling the financial elements, and you would receive royalties on the sales in exchange for allowing them to use your brand name. Additionally, managing outlets in foreign nations and distant locations might be challenging.

Therefore, franchising would be a wiser and more fruitful choice for business growth. And this blog post will assist individuals just starting out in business with franchising.

Initial Planning

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The franchisor must be adequately equipped to provide the franchisee with good planning, knowledge of the finer points of the franchise business, and the essential components of their own business, which would be their selling point. A better course of action for any new company would be to launch the franchise in the same area, where locals are already familiar with the name of the company and the calibre of its products.

A North Indian brand could suffer losses and have a difficult time gaining the respect and trust of customers if it entered the South Indian market unprepared. It is wise to realise that not every location is suitable for every type of business. For greater appeal among the populace, local flavour must be imparted. The goods and services offered must satisfy the needs and specifications of the outlet’s particular geographic area.

For instance, McDonald’s refrains from selling meat items in India so as to respect religious sensibilities. As a result, the location in which the firm must function must be properly understood, and then the business strategy must be somewhat modified to suit the location.

Location Planning

Location Planning for Franchisor

The choice of a great and appropriate place to open the shop is the following crucial step after deciding on the area where the firm is anticipated to be built. If a shopping mall is the best location for a franchisee’s firm to expand and thrive, the franchisor must provide recommendations to the franchisees. Or perhaps a busy high street? Or perhaps it’s close to a residential area? Once a location has been chosen and communicated, the franchisee must choose the most advantageous location. The franchisor may also request information on the type of property the franchisee holds, such as whether it is privately owned, leased, or rented.

Investment Sought

Investment Franchisor

The first condition for franchisees is that the franchisor must be transparent about the investment needed to create a location of the company. Depending on the popularity of the brand, the estimated return on investment that the brand can deliver, the degree of training that they would need to provide, and the setup cost of machines and other equipment, the franchisor may ask for any amount of money. It can be in the thousands or the millions.

Training Franchisee

Training for Franchisor

The first condition for franchisees is that the franchisor must be transparent about the investment needed to create a location of the company. Depending on the popularity of the brand, the estimated return on investment that the brand can deliver, the degree of training that they would need to provide, and the setup cost of machines and other equipment, the franchisor may ask for any amount of money. It can be in the thousands or the millions.

Provide proper training so that the service and product offerings are of the same quality in the company-owned outlet as well as the franchisees is a crucial component for a franchisor to maintain the brand name after franchising. As a result, the franchisor needs to be clear about the kind of training they intend to provide and deploy the top instructors to the field. For a food franchisee, for instance, the ingredients, the cooking method, and the procedures must be properly taught and followed. Thus, in order to preserve the delicacies and the quality of the cuisine, the secret recipes must be made public.

Appointing Managers

In order to streamline the process of overseeing, administering, and upholding the franchisee’s standards and protecting the brand’s reputation, franchisors should designate managers at franchisee outlets. The franchisor finds it challenging to monitor each franchisee’s performance and requirements. Managers would serve as a lubricant in the partnership between a franchisor and a franchisee. As a good franchisee is like a business partner, effective managers will close the gap and foster teamwork.

The franchisee you select for your business expansion plan is ultimately what matters most. Once you find a partner that shares your passion and way of thinking, the planning process will flow naturally.

An engineer by qualification, Gaurav started his career in sales and marketing due to his affinity towards networking with people. After learning the tips and tricks of the trade, he made a fresh start as an entrepreneur in the franchising industry back in early 2018, with a vision to bring order and transparency to an unorganized sector. He founded and spearheaded Frankart Global Private Limited, where he consulted, developed, and scaled more than 120 domestic and international brands all over India ranging from different industries such as food & beverage, beauty & wellness, and FMCG retail to name a few. Post-Covid, in mid-2021, he developed FranDocX, India’s first ready-to-use franchise documentation service portal, for the MSME entrepreneurs who were severely affected by the pandemic, and wanted to avail an affordable franchise solution service. His aim is to regularize ethical business practices in the franchising sector so that a greater number of investors can participate and avail the benefits of a structured franchise framework.

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