Setting off for a franchise

The largest fortune in the franchise industry have been made not by those who bought franchises, the franchisees, but by those who sold them, the franchisors.

Some aspects of know-how that must be brought to the franchising task include the following:

1. A pat formulation of the system to be franchised, which includes:

  • Standard procedures for running the unit;
  • Bookkeeping and other paperwork systems, forms, and procedures;
  • Any special equipment, tools, signs, or parts.
  • Supplier contracts for any special deals or buying, or custom ingredients such as labels, boxes, displays, etc;
  • Sample pro forma operating figures backed by the track record of a flagship unit;
  • A written loose-leaf manual covering all phases of the operation for franchisees to use. Included would be such things as operating instructions, policies for monitoring performance, ordering supplies, hiring and firing, canned pitches for dealing with prospects and customers, pricing rules, etc.

2. Legal coverage, which should include:

  • Protection of the system . . . . . .

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact Asif J. Mir.

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