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Franchising-Report-Session-4

The document outlines key aspects of franchising, including initial financing, costs, and the importance of strong brand identity and established policies. It discusses the advantages and disadvantages of franchising, as well as common problems associated with rapid growth. Additionally, it provides guidelines for selecting the right franchise and emphasizes the need for a well-prepared operations manual.

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Soleil Sierra Reigo
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© © All Rights Reserved
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Download as PPTX, PDF, TXT or read online on Scribd
5 views

Franchising-Report-Session-4

The document outlines key aspects of franchising, including initial financing, costs, and the importance of strong brand identity and established policies. It discusses the advantages and disadvantages of franchising, as well as common problems associated with rapid growth. Additionally, it provides guidelines for selecting the right franchise and emphasizes the need for a well-prepared operations manual.

Uploaded by

Soleil Sierra Reigo
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 20

CON-

TENTS
Strategy Develop-
01
ment Initial Financ-
ing, IPO
02 The cost of Franchis-
ing
Developing Franchise Sup-
03 port Systems: Supply, Mar-
keting, etc.
CON-
TENTS
04 Operations Manual

05 Selling Franchise

06 Selecting the Right Fran-


chise
CON-
TENTS

07 Dangers of Fast
Growth
PART
Strategy Development

01
Initial Financing, IPO
ADD YOUR TITLE HERE

Initial Financing means amounts borrowed


by the Company or its subsidiary on the date
hereof and/or to be borrowed to finance the
acquisition and, if applicable, rehabilitation of
the Project by the
Company’s subsidiary that owns the Project.
1. Advisors
2. Underwriters
3. Accounting Is-
sues
4. Board and
Committees
5. Management
PART
The cost of Franchising

02
In franchising you can spend a lot or a
little, and still make money. Once you
decided 1) that you want a franchised
business, and 2) what industry segment
you’d like to work in (fast food, home repair, pet
care, etc.), it’s time to determine what
you can afford. Your “budget” will limit your
choices.
PART
Developing Franchise

03
Support Systems: Supply,
Marketing, etc.
Strong Brand Identity

A strong brand identity is fundamental to any


25% franchise system. If the franchisor’s brand name
and
reputation alone cannot get customers through
the front
door, prospective franchisees
may question the value they would receive from
investing
The particular franchise on offer.
Established Policies and Procedures

50% Also fundamental system is having clearly


documented, well-defined policies and pro-
cedures in place for developing and operat-
ing the business.
Defined Expansion Targets

75%
Once the business decides on franchising as
means of
expansion, it needs to decide exactly where it
will be
expanding to.
Capacity to Manage and Support a Network of Franchisees

100%
It is also important to consider the impact that
franchising will have on your existing business
structure.
PART
Operations Manual

04
1.The franchise system’s goals;

A well-prepared
2. The day-to-day procedures
franchise operations
the franchise must follow in
manual will address at
order to ensure uniformity of
least the following five
customer experience across all
categories: units in the franchise system;

3. Payroll and accounting; and


accounting;
4. Customer service, including
topics such as greeting
customers and dealing with
complaints; and

5. Personnel topics, including


training.
Advantages of Franchising

 Franchising provides expansion


capital

 Avoids employee related problems

 Accelerates expansion over wide


area

 Franchisee operates are motivated


Disadvantage of Franchising

 Sharing Profits

 Loss of absolute
control
Some basic guidelines in
o Be wary of those who use
choosing your ideal
pressure tactics
franchise
o Research by talking to
o Know the total financial
some of the franchisees
requirements
o Buy only a franchisor
o Check the integrity and
with a strong brand
competence of the man-
agement
Common problems caused by rapid growth

 There may be a shortage of cash to meet expansion c

 Management may be under pressure, operating reactively rather


than proactively

 Staff turnover may increase due to heavy workloads. Viral


knowledge could be lost as staff leave. Hiring and training new
staff takes time and money.

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