When considering how to Franchise Your Business, building a solid and realistic business plan is one of the first stages in developing a successful franchise organization. A Franchise Business Plan should consist of the following key elements:
1. Franchise Industry Research
Prior to starting to Franchise Your Business - Franchise Industry Research should cover all of the potential competitors for the new franchise system and a complete overview of how the proposed franchise model stacks up against the competition.
2. Franchise Territory Analysis
The franchise territory structure is critical to the success of a new franchise model. Territories need to be the right size and allow for a franchisee to grow their own business while not giving away unmet consumer demand.
3. Franchise Buyer Profile
When starting to franchise your business, knowing who the buyer is for your franchise model is critical. What skill set they should have, experience, capital and personality traits will have an enormous impact on the success of the franchise organization.
4. Franchise Fee Analysis
In order to successfully franchise your business, the financial and business structure for your franchise system should be completely understood and in place.
5. Franchise Training and Support Regime
Successful franchise systems have fantastic training and franchise support for the new franchise owners that join your organization. When beginning to franchise your business, it is essential that the first franchise owners are extremely successful.
6. Franchisor and Franchisee Cash Flow Analysis
The franchise model needs to make sense for both you as the franchisor and for the investor as the franchisee. Appropriate cash flow models and Pro-Formas should be put together that allow you to identify whether and how to franchise your business.
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