Franchise developments are something to consider if your business is a success, and you’d like to branch out to other regions.
In South Africa, the opportunities that franchising affords for brand expansion are vast. For example, 43% of all retail trade in the USA is conducted via franchise outlets, as compared with only 9% of of the retail trade in South Africa. There is much room for the growth of franchising in this country.
In the challenging economy of South Africa, where employment opportunities are severely limited, a well-structured and closely-monitored franchising concept offers individuals with little or no business acumen the infrastructure, guidance and goodwill necessary for sustainable business success. Successful small local franchises rapidly metamorphose into national and international chains. International expansion opportunities and the concomitant generation of foreign earnings are realistically achievable. Franchise developments are an important step in developing the economy.
Examine current operational procedures and marketing techniques in order to evaluate them in terms of their franchising feasibility. These procedures include a full review of financial controls, operating statements, marketing strategies and profit levels. Place special emphasis on the exclusive characteristics of a particular business and conduct research into the franchising potential of its specific operation.
Recommend procedural changes that will improve the franchising prospects of the business. Your Marketing Department may suggest improvements in order to strengthen the corporate image. Other key areas are to be evaluated and appropriate recommendations made based upon those observations.
In order to create an efficient and effective franchising programme, advise on the decision-making regarding various areas including training, supervision, financial controls, and the purchase of equipment, merchandise, and supplies to franchisees. Criteria of these decisions include efficiency and profitability, prevailing standards in the franchise industry and the interpretation of various laws.
Determine the services that should be offered to franchisees and the optimum level of franchise fees and royalties after evaluating both franchise management costs and current market conditions. Evaluate the franchise budgeting market, based upon the recommended expansion rate.
The franchise agreement must be tailored to give the franchisor the maximum protection for the business concept and to ensure the uniformity of operation so vital to a successful franchise programme. It must define in full the services to be provided to the franchisee and identify precisely their obligations. It must be comprehensive and cover numerous areas including the territory to be granted to the franchisee, trademarks and their uses, training and assistance, advertising and the use and adherence to the operating manual. A franchise agreement must be a precise legal document.
As the first step in the development of your marketing programme, construct a franchisee profile in order to identify the type of person by net worth, professional background, vocational interest and geographic location. This profile will guide you in every phase of your marketing and sales programme.
A marketing plan with proposals for the most effective method of reaching your franchise prospects, including a breakdown of the costs for the campaign, will then be determined. Advise on the form of advertisements required to implement the plan and oversee their production and placement. All advertising material must be adapted in accordance with the marketing material and must be approved by the professional advertising bodies prior to publication.
Use leads generated by the the marketing plan, conduct preliminary interviews, evaluate the franchisee prospects, and make recommendations before receiving the applicants at your office.
Contact us for assistance with your franchise developments.
