Frantastic Franchise Consultancy
Developing Your Franchise Offering
In this article, we will discuss how to assess whether your business is inclined to franchise. We will see the tactic that folks should consider when thinking and forming a franchise structure for our clients. Market Selection Outline Franchising, for the most part, is a significant mass-driven business. Too often a franchisor’s terrestrial expansion is dogged by factors other than organizing and instead is significantly driven by where the possible franchisee’s calls derive. If you are employed with a franchise broker, often they will present you with prospects outside of your terrestrial target — and often those should be neglected if you can’t support franchisees in those markets. An unscheduled growth strategy can have damaging outcomes, as the cost of supporting franchisees and the capacity to impose brand standards become progressively difficult for brand-new franchisors as the distance between franchised sites and your headquarters rises. Markets directed for expansion should principally focus on boosting the franchisee’s and franchisor’s bottom line. The factors you ought to consider in instituting your geographic growth tactic include:
www.frantastic.in
Contact: +91 99090 45439
1
Frantastic Franchise Consultancy
• Markets in which you have formed brand and notion recognition • Critical mass needs • Supply chain competencies • Field support abilities including labor cost, staff accessibility, and time needed to provide the essential support services • Recognized competition • Accessible and affordable real estate • Relationship by-laws • Affordable franchise sales promoting • Obtainable strategic multi-unit franchisees • Language obligations, etc. Critical mass empowers the franchise system to accomplish market dominance over other chains & regional independents, augments financial feasibility for the franchisees in the market, it allows you to grow a sustainable revenue stream obligatory to provide franchisees with the essential brand support. An indirect advantage you will have from planned enlargement is your ability to determine better real-estate broker relations and attract better sites under more advantageous terms as the brand becomes tougher in the aimed markets. It is usually far superior for an emerging franchisor to expand robust regional brand presence than to have sites scattered over a large terrestrial area that may be tricky to support. Site Choice and Expansion How to make sure a more balanced franchise system? The essential thing is the performance of your franchisees and their selection of the appropriate real estate for your business. Real estate accessibility is always a challenge; the goal is to find out a support program that offers your franchisees with the info required to recognize your real estate requirements and build their
www.frantastic.in
Contact: +91 99090 45439
2
Frantastic Franchise Consultancy
sites with your support. To develop your approach for location selection and construction, you should emphasis on: • Exploring markets to ascertain areas of superior real estate accessibility; • Aim For the development of suitable markets; • Compliantly reviewing your site needs to expand the number of sites available to the franchisees; • Emphasis on recruiting the appropriate franchisees needed to develop and accomplish your localized site development tactic; • Establishing relations with real estate broker networks and joining real estate deal shows and meetings, involving those held by the regional real estate unions; • Establishing relations with companies that may be in complexity and possibly have real estate that meets your advancement requirements; • Offering your franchisees, early in the association, with training on-site selection. This training will have chief payback, as it will empower your franchisees to emphasis their efforts on looking for the precise sites, will give them a process to do so efficiently, and will also reinforce your franchise association as it will provide them with an initial benefit of being your franchisee; • Fostering your franchise prospects to commence looking for locations, and reviewing those locations with them during Discovery Day or preceding to signing the franchise arrangement; • Using digital photography, location review packages, and other techniques to speed up the process of assessing the real estate that franchisees recognize; • Establishing your site choice, approval and expansion strategy; and • Define provincial grants, if any, to expedite critical mass-market coverage needed to support your system’s obligations and competencies. Determining Site Criteria
www.frantastic.in
Contact: +91 99090 45439
3
Frantastic Franchise Consultancy
There are no stock definitions of a big site because every single business’s criteria are distinct. If your system’s clients will be coming to your place of business, then visibility and comfort of accessibility should be important on your mind. Though, if you are in a service business that belongs to a consumer’s home or a spot of business, then highways, a location to park your vehicles, and warehouse space might be most important. You need to contemplate what your site will do for you. You also will need to ascertain how many sites your franchisees can afford. Following are some of the essentials, but there are other criteria you ought to contemplate: • People density: How many folks or businesses are in your trading zone? Are they the appropriate background, family size, age and family income for your sort of business? Some demographic suppliers can offer you with specified reports telling you who lives and works around any proposed site. • Traffic generators: It is always advantageous if you’re anticipating customers to come to your site, that other businesses help you draw clients. Traffic generators such as malls, office centers, schools or hospitals might bring you the correct traffic. Anchors like grocery stores and drug stores might bring about the localized traffic your franchisees will be count on. If your business is a women’s hair salon and your center has numerous women’s clothing stores — that might be an ideal situation. But if your next-door neighbor is a furniture store or auto repair service — both sites that people visit not often — they lack the compatibility you necessitate. • Traffic count and availability: How much traffic? Both by car and on foot, do your sites require? Merely measuring traffic counts isn’t adequate, if the speed of the traffic or the availability makes it challenging for customers to get to your site. Similarly, if foot traffic is excessive during the day, but your business requires evening customers, then gauging noontime foot traffic isn’t going to value you. You need to ascertain not only that traffic occurs, but also that it is available and available when you need it. • Competition: Several businesses — like swift service restaurants — often do well in areas in which other rapid service restaurants are formed. Though, if you are a dry cleaner and there is a dry cleaner on every single corner, saturation by determined retailers maybe your collapse. • Security: The security of your customers and staff is crucial. Understand how well the center is run and what sort of folks currently shop in that center. • Employees: Are there enough numbers of competent people in the zone to work in the location? If the pool of prospective employees is constrained, your compensate scales may go through the roof. If you require entry-level, least wage employees and every kid in the neighborhood is driving some posh cars, it may be challenging to find enough regional staff to support the site.
www.frantastic.in
Contact: +91 99090 45439
4
Frantastic Franchise Consultancy
• Visibility, zoning, and signage: Having plainly defined criteria is crucial. If you are a destination type notion, it is important to make some that customers will have simple and persistent site visibility. These are just some of the location criteria you will need to determine. Finding a suitable site in some communities can be difficult merely because many of the great locations have already been taken and there is intense competition for those that are accessible. But, you can restrict your risk of franchisees choosing poor sites by recognizing what types of sites work for your franchise and making sure that the sites carefully were chosen to meet your requirements.
Conclusion At Frantastic, we help our client in making the business journey more exciting by providing numerous franchising opportunities across sectors and industries to make it first time right for the business passionate people. We assist our clients to make it right in the franchising universe. We are the one-stop solution for the franchise driven people who desire to build a career in franchising.
www.frantastic.in
Contact: +91 99090 45439
5