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What's a franchise system?
A Franchise is based on a proven business formula. A franchise system documents the way your business does business.… the formula, in other words. Accordingly, franchising can lower the risk associated with operating a small business. Franchising systems offer the franchisee an opportunity to be self-employed - to be on his/her own, but not alone …. a franchisee is “ in business for yourself, but not by yourself.”
Franchising systems generally include a proven business model, an established brand or product, and support from the franchisor through existing infrastructure and marketing schemes. The Franchise system should document the way to the development and implementation of cost effective franchise lead generation for new and existing franchisees. It's also how the franchise itself will run and incorporate marketing, supply, training, support, software and customer service across the franchise.
The Franchising System should include the entire conception of the business, and how to commence a new franchise:
• Detailed training
• Cost control: Pilot operations and buying powers will have eliminated unnecessary expenses of Franchisee so they need less capital while setting up their business independently.
• Site Selection methodology: The Franchisors help the Franchisee to identify suitable trading locations or operating territories.
• business concept itself from marketing strategy and plan, systems and formats, quality control and ongoing assistance, guidance and supervision.
• Where appropriate to the business, they should cover product preparation, (for example coffee barista training in a coffee shop) merchandising, rostering & hiring, marketing, fundraising, wholesaling, equipment care and maintenance.
Our Do it yourself Operations Manual template is the basis of many franchising systems and we have the consultants to help you build your system from the template. The template should focus your mind onto the areas you need to work on so that your business is the shape it needs to be in to be replicated successfully. We save you money because we don’t re-invent the wheel - we tell you what we need to know up front and you don’t have to pay us a fortune for working out what you already know. If there are areas on which we need to work, you pay only for those areas.
The system is how things are done in a systematic way. If you don’t have systems, you need to establish them. (Believe me, I’ve had shop assistants jam their fingers in the till because they haven’t been shown how to use one).
The manual is how the system is described in written form to a franchisee. Click here for our article on manuals.
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