Franchising your company is a great tool for the entrepreneurs who want to expand their businesses. It has great many perks and advantages. The most important among them is the low cost input. Unlike employees, a franchise pays you back on its investment and it continues to pay you a percentage on its revenue regularly. It means that the franchise covers up the cost of launching the business, training the staff, and setting up its infrastructure all by itself rather than its parent company. Similarly, it keeps on rewarding its parent organization on regular basis on the investment as per the agreement of the business. Thus, it is a very cost effective route for a business to expand its feathers.
A franchise development company offers a one-step shop for expanding the business through the franchising process. It provides several flexible services such as intellectual property lawyers, territory mapping specialists, bankers, accountants, and franchise lawyers. It assists the parent company in the following tasks during the process of franchising:
Initial Assessment:
A franchise development company gives an honest assessment of the situation if a business is at the stage of expanding its structure through franchising. It assists in evaluating the financial position of the parent company through a financial analysis based on the financial statements of the parent business to determine if the potential income of the franchise is acceptable to both the parties i.e. the parent organization and the potential franchise.
Planning and Development:
A franchise development company informs the parent company about the necessary infrastructure requirements of the franchise. It assists in steps such as designing franchise business brochures, making financial projections, defining administrative systems, arranging training programs, writing operation manuals, briefing franchise lawyers, securing intellectual property rights, developing brand and corporate images, as well as paying attention to all other areas critical to the franchise success.
Franchise Recruitment:
A franchise development company involves in assisting in franchise assessment and interviewing, developing the franchise recruitment process documentation, advising on franchise territory size and mapping, and developing both web and hard copies of marketing materials for the franchise. The recruitment process involves hiring of suitable franchisees especially the ones with years of experiences in dealing with both the franchisors and franchisees. It also assists in developing franchise interest among the general public through all relevant channels.
At later stages of the process, a franchise development company can also be involved in carrying out a health check of the franchise, reporting back on any alterations and improvements, and suggesting for the franchise structure if the franchise model has been decided to mature by the parent organization. It also provides supports and advices in any particular aspect of the business.
