Question

If you are an entrepreneur who has decided to use franchising as a means of growing your venture, what are the steps you need to take to develop a franchise system? Q6

Answer 1

Steps need to take to develop franchise system :

i) Franchise assessment : First step is to determine whether franchising is right fit or not for the business.

ii) Entrepreneur's business & brand assessment : Evaluate the business & brand - strengths, weakness, competitive advantages, unique selling price & future development goals. Thus will help to maximise the scalability of the franchise system.

iii) Franchise competitiors : Assess & evaluate about franchise competitiors to understand them & create baseline for franchise system.

iv) Franchise blue print : Establishing franchising fee & royalty fee structure, identification of core products & services, operating areas and other factors.

v) Franchise agreement : This agreement gives right to establish one or multiple units. It needs to reflect franchise system & must be designed to facilitate franchise sales.

vi) Establishing a new entity : Establish new entity to protect existing operations & for number of reasons for franchise development.

vii) Hire staff & attend training : Franchisors usually provides training to staff for franchise system. New franchise owner require to attend training.

viii) Start the franchise business.