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    Chapter 3 - The Franchisor Business Plan

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    Gunther
    The document outlines the key components of developing a franchise business, including a franchisor's business plan, franchisee recruitment materials, and operations manual. It discusses elements that should be covered such as management policies, marketing, accounting, legal documentation, and training. The six main sections of a franchise feasibility study are also described: executive summary, marketing, management, finance/accounting, legal requirements, and appendix.

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    Chapter 3 - The Franchisor Business Plan

    Uploaded by

    Gunther
    3K views15 pages
    The document outlines the key components of developing a franchise business, including a franchisor's business plan, franchisee recruitment materials, and operations manual. It discusses elements that should be covered such as management policies, marketing, accounting, legal documentation, and training. The six main sections of a franchise feasibility study are also described: executive summary, marketing, management, finance/accounting, legal requirements, and appendix.

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    franchising

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    The document outlines the key components of developing a franchise business, including a franchisor's business plan, franchisee recruitment materials, and operations manual. It discusses elements that should be covered such as management policies, marketing, accounting, legal documentation, and training. The six main sections of a franchise feasibility study are also described: executive summary, marketing, management, finance/accounting, legal requirements, and appendix.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    3K views15 pages

    Chapter 3 - The Franchisor Business Plan

    Uploaded by

    Gunther
    The document outlines the key components of developing a franchise business, including a franchisor's business plan, franchisee recruitment materials, and operations manual. It discusses elements that should be covered such as management policies, marketing, accounting, legal documentation, and training. The six main sections of a franchise feasibility study are also described: executive summary, marketing, management, finance/accounting, legal requirements, and appendix.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    The document discusses the components and structure of a franchise feasibility study, including executive summary, marketing, management, finance/accounting, legal requirements, and appendix.

    The six main components of a franchise feasibility study are executive summary, marketing segment, management segment, finance/accounting segment, legal requirements, and appendix.

    The key elements that should be analyzed in the marketing segment include major marketing objectives, marketing plan/pricing strategy, target market analysis, pricing strategy, franchisee recruitment plan, franchisee prospectus, franchisee sales/advertising, franchisee location criteria, site location, grand opening plan, promotion/advertising, and marketing to franchisees.

    Mojado, Hazelle Anne M.

    Franchisors Business Plan


    Franchisee Recruitment Package
    Franchisee Operations Manual And Success
    Package.

    Management, organization, and administrative policy
    Managing the marketing process
    Sales and marketing research
    Managing the operations process
    Location and site selection
    Accounting practices and fiscal responsibilities deemed
    appropriate, along with the realistic financial projections
    Based on the strategy to be followed and the market
    conditions anticipated; management information systems
    And legal documentation for determining the franchisor-
    franchisee relationship and anticipated activities of each
    party

    Includes disclosure documents, recruitment and
    advertising brochures, and franchising agreements and
    contracts.

    The business logical flow of topics:

    The objectives of the franchisor firm
    The initial capital and expected investment required of a
    potential franchisee
    Personal and other qualifications a potential franchisee must
    have
    Training provided by the franchisor to the franchisee
    Anticipated benefits and responsibilities of becoming a
    franchisee
    Contains elements of the following items:

    Operations manual
    Financial and bookkeeping systems
    Advertising and promotional packages
    Sales manual
    The franchisor or franchisee support package
    Training manual


    Contain sufficient information to enable either a
    franchisor or a franchisee to make a go or no go decision.

    The six content sections of a feasibility study:

    Executive summary
    Marketing segment
    Management segment
    Finance, accounting, and taxes
    Legal requirements
    Appendix

    Executive summary

    It tells the story of the franchise venture and sparks the
    interest of any outsiders. This summary must not be
    more than three (3) pages. Attached to it is the
    complete business plan or proposal. It consist
    company name, type of business, company
    description, key personnel, start-up schedule and
    competition, funds requested, funds use statements,
    and fund repayment ability.

    Marketing

    It concerns the distribution of goods and services to
    existing and potential customers to satisfy some want
    or need.

    Elements of Marketing to be analysed:

    Major marketing objectives
    Marketing plan and pricing strategy
    Target market analysis
    Pricing strategy
    Mark up pricing
    Franchisee recruitment plan and flowchart
    Franchisee prospectus
    Franchisee sales and advertising
    Franchisee location criteria selection
    Site location
    Grand opening plan
    Promotion and advertising
    Marketing to the franchisee

    Management

    It is simply defined as getting things done through
    people. The two main reasons for failure in business
    are poor management and lack of capital.

    Elements:
    Headquarters organization
    Franchisee organization
    Operations manual
    Training manual
    PERT chart

    Finance and Accounting

    The major accounting records to be kept by a franchisor and a
    franchisee would at the very least include the following:

    Start-up or turnkey costs (itemized)
    Financial position for starting franchisors system
    Pro forma balance sheet
    Pro forma income statement
    Pro forma cash flow statement
    Breakeven analysis
    Ratio analysis
    Provision for taxation

    Financial records for the franchisee

    The important financial records or position statements
    for a franchisee would include:

    Start-up or turnkey costs (itemized)
    Financial position for starting franchisors system
    Pro forma balance sheet
    Pro forma income statement
    Pro forma cash flow statement
    Breakeven analysis
    Ratio analysis
    Provision for taxation

    Legal Requirements

    It must be Satisfied, such requirements usually rest on legal
    opinion versed in franchising law. Typical factors covered
    in the legal agreement include:

    Business structure
    License, contracts, and permits
    Types and anticipated cost of insurance
    Disclosure documents (uniform franchise offering circular
    UFOC)
    The franchising agreement itself
    Conditions integral to the franchisor-franchisee
    relationship
    Possible termination
    Appendix

    It is an important visual aid containing illustrations,
    diagrams, analysis, and exhibits referenced throughout the
    franchise feasibility study. An expanded appendix would
    include the complete training manual, operations manual,
    advertising and promotion packages, sales manual, site and
    store layouts, franchisee recruitment presentations, charts,
    graphs, diagrams, layouts, and other materials which may
    enhance the franchise activities.

    The Franchise Pert Chart

    It presents a visual sequence illustrating each development
    step and function to be completed before a franchisor
    should open a franchised business. A complete franchise
    PERT chart would include the following phases:

    PHASE1 RESEARCH AND ANALYSIS
    PHASE2 ORGANIZATIONAL DEVELOPMENT
    (EXTERNAL AND INTERNAL)
    PHASE3 MARKETING TO FRANCHISEES
    PHASE4 FRANCHISEES SELECTION
    PHASE5 SITE (BUILDING) AND TRAINING
    PHASE6 START-UP AND FEEDBACK

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