FOREIGN FRANCHISES WHAT TO LOOK FOR AND HOW TO CHOOSE?
About Chainformation Specializes in helping Franchisors to better manage their conceptual assets and securing top level day-to-day operational support to franchisees. Develops and offers a web based Concept Know-How Portal specially designed for franchises. Offer consulting services for management support, concept documentation and system development. Founded in 2000. Based in Malmo, Sweden. Currently supporting 40 Franchised concepts, with approx 4000 units in 30 countries. Owners and Management team with hands-on experience from Franchise operations and retailing.
There are numerous important topics to consider when choosing a Franchise. Most are relevant regardless of branch, business, product or service concept, national or foreign. Some general examples: What products or services would you enjoy selling - What are you passionate about? –It may not be your concept, but you are going to live it. Therefore, make sure you choose a franchise that gets your enthusiasm pumping. To be successful you have to be passionate about it. (Hopefully the Franchisor is..) A single unit license or a Master/Development license? –As a Master you will act both as a Frachisor AND a Franchisee in your market. A Master usually has to undertake a development plan and other major responsibilities. Investment levels and financial issues –Get it right, get professional help Contractual/Legal issues –Get it right, get professional help Franchisor/Concept stability and history –You don’t want to be a guinea pig – validate a track record. Growth and market potential (development plan from Franchisor) –You don’t want to be the only franchisee after a year! References to existing Franchisees – visit if you can. Training and operational support –Probably one of the most important issues for the long term success and sustainability of your investment in a Franchise.
According to the ethical code of European Franchise Federation (EFF), a franchise concept is to be founded on know-how that is secret, substantial and identified. This requires effective distribution, updating and follow-up of the business concept know-how which is to be transferred from Franchisor to Franchisees. The role of the franchisor is to transfer latest know-how and to implement this as a continuous development of the business concept. Business today is dynamic and rapidly changing, therefore business support must be positioned to aid you as a Franchisee accordingly. Regardless of products or services offered. FRANCHISING IS ALL ABOUT KNOW-HOW
No.1 That’s actually what you are paying for when buying a Franchise. - The Franchisor has a proven business concept, meaning they already made the big and expensive mistakes so you don’t have to. - Get access to knowledge on what NOT to do. You as a Franchisee are their primary customer. - They sell, you buy. The commodity is Support and Knowledge. - Treating you as any important customer is a matter of course. - The customer walking in YOUR door is their secondary customer. They make promises you are expected to fulfill - The Franchisor is the Brand owner. - Through marketing promises are made to the customer, an image is built. - You are expected to fulfill that promise and the image – make sure you get the back-up. WHY IS THE FRANCHISORS SUPPORT CONCEPT IMPORTANT?
Does the Franchisor have the recourses to support you? Do they have the right people for training and support. - Are they experienced in training and teaching. - Do they have these people within a geographically acceptable distance. - In what areas of the business will they support you. In depth or shallow Do they offer Best Practice and Mentoring? - Learning from the best within the organization - Do they promote or prevent internal cross communication and collaboration between franchisees? The Franchisors Toolbox - Clever IT solutions paired with human interaction generates reliable, fast and cost efficient support. - Internet is the way to give access to self serve support for routine questions 24/7. - Channels for internal communication and forums can bridge geographical distance. - Support systems for Customer Relations, Reporting, Checklists, Marketing, local Web site etc. WHAT TO LOOK FOR IN A GOOD SUPPORT CONCEPT?
The Handbook or Operations Manual - Printed Manuals are NOT a part of a dynamic support concept. - It should be an integrated part of daily business, supporting individual job functions and weaved together with ongoing marketing and commercial activities. - It should be updated to reflect the business, competition and industry changes, if needed on a daily basis. - It should help you and your employees to syncronize your operations and standards with the entire chain. WHAT TO LOOK FOR IN A GOOD SUPPORT CONCEPT?
- "Everything I need is in one place. I can find what I need when I need it without having to wait on an email reply, walk around looking for someone, or call headquarter for support. Plus, after working through difficult situations, I can post my lessons learned on the site so my colleagues can learn from my experiences," says one store owner. Basically, this just makes my job easier and gives me more time to focus on serving my customers.” / Unnamed Franchisee in Danish concept ”PitStop” A FRANCHISEE SAYS: