If you are looking for a formula to grow your business, one of the most interesting is that of franchise, which is used for various reasons. As they tell us from Le Morne Brabant Abogados, the most important is that it is a model of global business success, which allows us to retain the best candidates / managers with a formula in which they become owners.
In the franchise system, we can concentrate all our efforts to continue developing the brand and add value from the central services by not having to manage the day-to-day business units.
However, before starting it, you have to prepare well and ask yourself if you are ready to do it. According to the law firm, Le Morne Brabant, these would be the steps to take.
The feasibility plan
The first stop is the project feasibility plan. At this point, the owner must present his business plan to his future franchisees. The most relevant thing within this concept is that it is a proven and successful business, since what we are going to convey is the know how. However, this entire business plan must be well reflected both contractually and in the form of budgets, sales objectives, profitability, etc., bearing in mind that an important part of the achievement of these objectives will depend on the franchisee.
To do this, you must study with the legal and financial team to help you franchise all these concepts and ensure the viability of the business to the associates.
Structure and ‘Bible’
You have a way of doing things that has worked, that’s why you want it export and profit from it. This should be made clear in the franchise manuals, which are something like the ‘bible of the business’, which is known as the know how and that you must collect the following points:
- Operational manuals by positions (Provision of services-sale of product)
- Corporate image
- Provider guide
- Human Resources Manual and functions
- Contracts and labor policy manual
All this collected in detail under a didactic approach, that is attractive and that, of course, offers all the legal guarantees, according to the lawyers of Le Morne. Your business is thus collected in these documents, which are transferred to the franchisee by virtue of the franchise agreement, with the obligation to return them at the end of the contract.
The moment of truth: the contract
It is at this point where it becomes essential a specialized legal team in creating this model. This legal agreement consists of the assignment of the exploitation of the “duplicate business” and must contain the following aspects:
- Input fee and royalties
- Naming use
- Determination and exclusivity of suppliers
- Advertising regulations
- Exclusivity zone
- Terms of renewal and resolution
- Limitations on the transfer of the franchise
- Commercial assistance
The corporate image, a vital element
Respecting and reproducing the brand image in future franchised businesses will be vital for the public dissemination of the brand, its recognition and acceptance. It is intrinsic advertising that represents the values of your product. Hence, the contract must express the need for them to be respected. We speak from the colors of the signature, the style of the typography of the web and the contents of social networks, among others.
Inevitable, necessary and productive. This includes software of a different nature, be it organizational, accounting, data management or even e-commerce. It should be included in the operating manuals and franchise contracts.
Viability plan, operating models and franchise contracts are, therefore, the great pillars to successfully replicate your business and see your concept grow. It is not an exact model. Each type of organization will have its peculiarities and will have to be adapted to the franchise model. But, always, after the necessary study. Forecasting, as in all businesses, is essential. So is the support of experts, both in legal, organizational and economic matters.