Be successful in franchising

Be responsible franchisors

Be franchisors, which are responsible for the development, marketing and control of the operational concept. Through this – mission critical – task sharing between franchisees and franchisors, everyone benefits from the cooperation and expertise of the other. You as a franchisor to benefit from the initiative, the labour, capital, location, and the payment of fees of the franchisee.

In turn, you put your knowledge, your experience, your holistic business concept and your organization and success instruments.

Here is a successful business concept into a franchise system:

  • Multiplying the sales concept
  • Sales increase
  • Faster expansion through versatile expansion options of the system
  • Improved customer service through their own initiative, the franchisee
  • Growth in the distribution system from combined capital
  • High flexibility through close communication with the franchisees
  • Lower equity commitment
  • Reduce business risk
  • Benefit from the work force, the location and the payment of fees of the franchisee

Obligations of the franchisor

There you should also be aware that you as a franchisor have a number of duties and responsibilities. These obligations should be taken seriously because of the success of the franchise concept depends, among other factors. Your tasks can be represented as follows:

  • Developing a successful store concept
  • As a pilot
  • Improvement and standardization of operational process
  • Documentation of the entire expertise for building operation and management (manual)
  • Implementation of the marketing concept
  • Intensive advertising, sales promotion
  • Qualified advice of the franchisee on site
  • Education and training of the franchisee
  • Quality Management System
  • Continuous development of the system

Support of franchisees

The path to the franchisor an existing business model into a franchise system to convert requires careful planning. It makes sense, the way to a franchise concept structured tackle. The following points will give you an orientation, such as the way content can look at a franchise system:

  • Development of a business idea
  • The validation of the idea as a franchise system
  • Creating a profile of the franchisee
  • Conduct and performance analysis
  • Creating a marketing plan
  • Determination of the type of business
  • Creating a financial plan
  • Creation of the franchise
  • Cooperation and the First franchisees

You should allow enough time, these steps I go through all the care, so you have the opportunity to establish your business idea successful. At each step, there may well be useful to other franchise consultancy access to back.

How to become franchisors?

If you run your own business and “multiply” your proven business idea, would like this contribution will provide the necessary information, which points to consider and what decisions must be made.

As a prerequisite to the capability your business idea, your concept will be tested as a pilot project to its success.

The importance of the franchisor

Franchising is a cooperative marketing system, which provides a parent company, the franchisor a proven business concept and business knowledge fee to the independent franchisee provides.

They do not focus on selling a product, but to developing a complete business plan. Its main task is the franchise concept constantly to develop and market. As a franchisor, you must have prior to this business concept, at least two years successful market positioning.

Products or services should be clearly visible. The big difference to traditional branch system is that you tie up less capital.

However, it must not be forgotten that a number of obligations on you will face as a franchisor. All critical business processes need to be performed to understand in a manual, franchisees expect training and support in marketing, controlling and intensive communication. If you are entertaining the thought of franchisors to be, then you can use the following questions:

  • Assess the chances of success
  • Is your market potential long term
  • Are your business goals clearly defined
  • Is your business plan competition
  • Can you provide clear requirements for your franchisees
  • Are you able to care for all franchisees comprehensive
  • Do you have enough business experience
  • Can you take responsibility for your franchisees

Advantages of franchising for franchisors through franchising will combine the advantages of large companies (market power) with those of small business (market close). Be franchisors, which allow franchisees the adoption and implementation of your market with proven business concept. For a fee, the franchisee receives a “turnkey” business concept with property rights, shopping benefits, training and support services as well as in business administration, marketing and PR. This knowledge allows the franchisee to implement a legally independent contractor in the location and focus on the sales staff and its customers.

Successful knowledge management in franchising

In today’s business world, the key areas are information and knowledge are very valuable assets. For many companies, therefore, eventually the question how effective is management of information.

Effective knowledge, the process of identification can be divided, roughly speaking, in four steps. Here are basic principles, which a company should be observed, to run a successful knowledge management:

In order that new knowledge can emerge, have relevant information to be interpreted and evaluated by the respective user. The correct interpretation of the information collected for each company can be valuable inferences lead to both short-term business decisions and for strategic planning, and it can be used.

Knowledge must be in its overall process throughout the company systematically captured and embedded in the strategic business planning are.

The proper use of the accumulated knowledge can eventually to a highly productive cycle lead, which may represent an important component in the development of an enterprise.

In aspect of knowledge transfer, the cooperation between franchisor and franchisee is crucial. Therefore, especially in franchising if one is well organized in regards to knowledge management, it is essential for the success of the whole system.

Here is a short list of the main reasons:

  • Franchising as a concept is based on the multiplication of successful operations. Because of this, particularly in the construction and implementation of a successful franchise system is a well-crafted knowledge management one of the critical success factors. All transactions that will largely determine the operations of a franchise concept successfully and they must be thoroughly documented.
  • Information transfer in two directions
  • One of the main duties of the franchisor is it, he to ensure that the information, provided to them from active franchisees is available.

In addition, he have to prepare accordingly and evaluate (e.g., changes in demand and sales of individual products, recurring demand for a particular product, complaints about quality issues, etc.). That information could be used for conclusions for future product planning and the cooperation with suppliers. In this way, a good knowledge management can help very in this area.