Proven Format Franchising
Following on from my previous article about what kind of business makes a successful franchise, we can now look at components of a franchise and its format.
Image and System
The clearly defined image and system are what we call the interllectual property. This includes the trade name, the method of operation and the way in which the various elements of the business come together to make up the franchise formula. None of the elements of the package need to be individually secret. What matters is the way that the franchisors ha combined them to create a successful franchise system.
Naturally, the trade mark or name has to be owned by the franchisor as he is licensing others to use it, but don’t worry if your name is not yet well known. That will not stop franchisees from joining you. After all, even McDonald’s and Marks & Spencer started with only a single outlet.
All the elements of the package from design and layout of the premises, through marketing campaigns, to accounting and administration will be detailed in the franchise manual, and it is the system in the manual that the franchisee agrees to operate.
Proven Format
Pilot operations prove that the concept works and it is the evidence of their success that will convince your first franchisees that they should choose your franchise. Even if you have run company-owned branches for years, you must be aware that things will change when you franchise and you must be prepared to run pilot units at arm’s length.
This is just as important if you currently have company-owned outlets which you are planning to convert to franchises and even if the franchisee is going to be the existing branch manager. Something different will happen when it becomes a franchise, so it is wise to find out what that is before you take the plunge.
Pilot units should, of course, mirror the proposed franchised outlet as far as possible in terms of size, location, catchment area, population profile, staffing and so on. It is no use doing brilliant business from a site in London’s Leicester Square and then expecting a franchisee to be equally successful in the high street in Leicester. Ideally, you should pilot the concept in two or three places for at least one complete trading cycle.
Pilot operations help to prove that what you thought on paper will work in practice. If it doesn not, then you still have the chance to adapt it before offering it to franchisees. Pilot units also give you the opportunity to write the manual from practical experience rather than theory.
Tags: brian duckett, franchise, franchise a business, franchise pilot, franchisee, proven system
