Your goal is to ensure that your franchise system has the ability to consistently and sustainably replicate your brand standards from location to location.
Developing a Franchise System
Franchisors need to examine the cost benefit relationship of requiring frequent franchisee remittances vs. working capital benefits.
Field staff perform multiple functions in a franchise system; not only monitoring franchisee compliance, but also contributing to system growth far beyond completing a site visit checklist.
Michael Seid, founder and Managing Director of MSA Worldwide, the leading strategic and tactical advisory company in franchising, has been re-elected to the International Franchise Association’s Board of Directors as the Chief Concept Officer of Social Franchisors CFW Clinics (CFW)...
Regardless of the cause, the loss of any single franchisee-owned location should be viewed with concern by the franchisor, and should be analyzed to discover the reason and prevent future failures.
The criteria used in determining franchisability should be appropriate for your industry and business, and will generally fall into these interrelated and interdependent major buckets.
The franchise system you ultimately develop, and the franchisor/franchisee relationships you establish, are all shaped by the determinations your make in your strategic plan.
In Part Three of the Threshold Analysis, we’ll cover the different classes of franchisees and how to determine which class or classes you should be focusing on as you conduct your analysis.
Too often in our practice at MSA Worldwide, clients will present to us a set of facts that their lawyers have determined is a license, but in reality is a franchise.
Here in Part Four, we’ll cover the support system and fees to consider for your franchise system during the Threshold Analysis.
This in-depth article addresses one of the most difficult business and relationship issues for franchisors to manage - the transfer of a franchised location between franchisees.
How to analyze your ability to expand your franchise system in the threshold analysis, including market development strategy and comparing indirect and direct methods of franchise marketing.
Just like any other fee imposed in a franchise agreement, advertising and marketing fees must be structured in a way that balances the franchise system’s need for the funds with the franchisee’s practical bottom line return on investment.
Understanding unit failure is a chance to improve your franchise system, and it’s important for franchisors to understand why each location failed.
The government’s guidance will continue to change as circumstances on the ground change; many franchise systems are once again fully open for business, while others remain susceptible to evolving restrictions due to Covid-19.