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FREQUENTLY ASKED QUESTIONS
“Franchise Questions Answered”
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Frequently asked questions
The primary responsibility of a franchise business consultant is to direct, consult, facilitating in franchise development, support brands throughout the process of developing your company into a franchise system, facilitate the in the sales of your first franchise or to consult, strategies and upgrade your existing franchise growth strategy in order to sell even more locations, we provide the services you need at every level.
How we add value
The question now is, what exactly is a franchise consultant, and why exactly do you require one? It’s not complicated: An expert in the franchising sector who possesses the connections and resources necessary to assist you in expanding your franchise system is known as a franchise consultant. A franchise consultant is much the same as any other business consultant, with the exception that they have unmatched knowledge in franchising. Because of their extensive knowledge of franchising, the franchise consultants at Franchise Guardian® will be an invaluable asset to the development of your franchise system, the expansion of your company, marketing strategies and much more.
Thinking about franchising?
It is time to think about franchising if you now run a successful independent business and are attempting to decide how to maximize your growth and take the next step in your business’s evolution.
We place the same level of significance on the accomplishment of your franchise ventures as you do. Because of this, we make it a point to do a franchise feasibility study in order to assist you in determining whether or not your company is suitable for franchising. Because we don’t want you to waste your time or money on our services if franchise expansion isn’t going to work for your company or the franchisees, we do comprehensive feasibility studies first. This is to ensure that the there is a proportionate benefit for both the franchisor and franchisee, that the probability of success is higher than failure. Franchise Guardian feasibility practices averts disastrous and consequential outcomes that we would all rather avoid.
Once Feasibility is achieved, our franchise advisors will then guide you through the remainder of the franchising procedure step by step. An experienced franchise consultant will walk you through each step of the process, from generating sales leads to establishing your infrastructure, branding, marketing, plugging you into franchise Guardian software , drafting the franchise disclosure agreement and setting you and your team on a trajectory for success in the franchise sector.
This is a loaded question, but we will answer it in short. With that you must ask yourself and our experts these questions;
Do I have a distinct and recognizable brand?
There is much more to launching a successful franchise than having a strong business idea. It’s about having a brand, vision, narrative, and unique selling proposition that will set you apart from the competition – one that will translate effectively across a variety of geographical regions and can be articulated easily to both prospective franchisees and customers. You are not in the business of selling business not just products or services.
Does my company generate a profit?
It goes without saying that no one will want to invest in a franchise opportunity that cannot generate profits. Some would-be franchisors may be tempted to regard franchising as a method to pump funds into a cash-strapped company, but nothing could be farther from the truth – franchising is an expensive business! Some experts recommend that a firm should have been consistently profitable for three years before contemplating franchising; however, this may not always be necessary or practicable if the brand is a unique and niche one seeking to franchise before others get on board! However, the same condition still applies: the business must be profitable and capable of expansion.
Is my product or service credible, attractive, and widely appealing?
Anyone considering to invest in a franchise will have a long-term perspective. The product or service must withstand the test of time and be amenable to growth and expansion in the face of future market shifts. No novelty acts will be considered! And it’s crucial that the service isn’t just a local success; the business must have appeal in other geographic areas as well.
My company name/logo is eligible for trademark protection?
Any brand seeking to expand through franchising must have a business name and/or logo that is capable of obtaining and maintaining trademark protection. This includes domain names and, more and more significantly, social media tags.
Can my business be replicated easily?
A business must be teachable in order to be franchiseable. If the success of the core business depends solely on its location or the personality of its leader, it is quite difficult to be certain that others will be able to repeat its success. The perfect franchise is built on a task that can be easily taught to others, such as preparing coffee or hamburgers, managing cleaning operations, or providing delivery services.
Do I have the funds (and time) to invest in a franchise?
The franchising of a firm is a financially and time-intensive endeavor. A would-be franchisor must do the math and ensure that they have sufficient capital to hire the necessary experts to get the business franchise-ready (attorneys, franchise consultants, accountants, branding experts, etc.), as well as sufficient working capital to support the business during the difficult period preceding the first few franchise sales. In addition, franchising requires the entrepreneur to get everything related to the management of the firm out of his or her head and into paper so that the franchisee operations manual, policies, and procedures may be created. This is an extremely time-consuming undertaking that the franchisor-to-be generally attempts to do while being extensively involved in the day-to-day operations of the firm.
Exists more value I can provide to my franchisees?
Any emerging franchisor should ask themselves, “Why would a franchisee join my firm instead of starting their own?” It is crucial to thoroughly consider your target franchisee and the factors that would entice them to invest in your company. What will distinguish your brand and franchise package in the marketplace?
Have you established the time and systems necessary to support a team of franchisees?
Insufficient comprehension of the level of support and help that new franchisees would require is a common error made by emerging franchisees who fail to see beyond the actual introduction of the franchise package. Happy and prosperous franchisees are a franchise brand’s most valuable asset, therefore it’s crucial to consider what your support and operational systems will be as the business grows, as well as ensuring that the necessary funding is in place.
Have you investigated alternative expansion models?
For some types of businesses, franchising is the most practical means of growing to several locations. However, other options should not be overlooked, such as hiring personnel, launching a second operation, or leasing another vehicle.
Have you developed the proper mentality to become a franchisor?
Last, but arguably THE most critical question of all, is the following. A business may be franchise-ready in all other ways, but becoming a franchisor is a significant undertaking that is not for everyone. You must be mentally prepared to encourage others to join what is basically your business “baby” – for me, this was the most difficult stage – and to let your franchisees to assume charge of their own enterprises (within the confines of the franchise agreement of course). You must be resilient and able to handle adversity, willing to provide a great deal of hand-holding – particularly in the early stages – and able to motivate your franchisees’ staff. Franchise success frequently hinges on the mindset and personality of the franchisor at the helm of the brand – franchisees want leadership, justice, and honesty from franchisors, therefore it’s crucial to take a long, hard look in the mirror before embarking on the franchising ride!
If any of these questions have you wondering if you can do it, reach out to our team, we will present more questions, raise more concerns and work through them with you during our feasibility process. If we need to add more appeal, we will, if we need to talk marketing and internal practice to prepare for launch, we will, that is the value in dealing with experts in franchising!
Franchising is NOT specific to one industry sector, in fact, almost every sector has a hand in franchising. Whether a service franchise, product or a specific method of doing business, or even a unique technique, it can be franchised. There is NO restrictions on what a franchise model may look like so long as it has the ingredients that make up the special relationship between a franchisor and franchisee.
Simply put, the FTC rule governs the relationship between a franchisor and franchisee. It establishes guidelines that a franchisor must follow when offering a franchise. The primary purpose for the FTC rule is the same as why the Security exchange commission (SEC) governs the stock market. The rule establishes compliance and fair dealings. For more information please visit www.ftc.gov
The broad answer is Many. Depending upon your business concept, there maybe a few revenue streams or dozens. It is not merely you becoming a “Franchisor” that makes your company a success, it relies more on how you structure your franchise. Franchise Guardian® Staff will identify the many possible revenue streams that a Franchise System can provide. We will evaluate every possibility, discuss the pros as well as the possible cons and determine the best course for your brand. The most common added revenue streams are as follows; Monthly royalty fees, Monthly marketing fund fees, Distribution of the concept’s products income, development income and the Franchise Fee.
NO! In fact, you don’t have to have any locations to franchise a concept. This is a systemic misconception. Franchise Guardian® will evaluate your concept for feasibility, offer you the best advice, a sound strategy and work with you to determine the best course of action.
This will largely depend on how aggressive your plans are.. Franchise Guardian® has the framework, the systems and team to launch your brand as a franchise in as little as 45 days. Let our team join your team and make it happen.
This amount can vary significantly. Deciding on which firm you will work with, will determine your initial costs. In most cases, however, shockingly the cost to franchise is usually far less than compared to the initial cost to develop your corporate location. However, it is also important to understand that there are on-going costs, similarly to your currently operating business.
On-going costs include, but are not limited to; Marketing, branding, compliance, support infrastructure, Legal, accounting and consultants. Choosing the right firm, that are lower on the development costs, allow you to allocate more towards the growth of your franchise. Franchise Guardian® provides the lowest development costs in the industry using our smart digital development practices, that significantly reduces initial costs. It is equally wise to hire a firm well versed in all areas of franchising as your legal framework will not provide the growth component needed to be a success.
Be very careful when choosing a firm, it can mean the difference between slow to no growth, or rapid and aggressive growth.
YES!Franchise Guardian offers a steps payment options that allows for monthly payments determined by development time and other valuable considerations! Reach out and learn how you can enroll in the steps payment option to develop your franchise system.
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