Franchise Opportunities (HK)
Franchising Checklist
Franchisor
2. Does your concept really have staying power? To endure as a business and be replicable by franchisees, your concept needs to have qualities that mean it can survive the long haul.
3. Does your concept stand out? Your product must have a genuine competitive edge in a crowded marketplace. The uniqueness of the concept itself is improtant, plus the whole marketing package, such as name, brand and image. Your distinctiveness should also carry over to the methods of operation and organisation.
4. Can it be cloned and successfully operated by others? It is absolutely essential for franchising that your system and business methods can be replicated. Any new ideas or changes to your system must also be replicable, and the innovations must blend in with the existing business systems and methods.
5. Can it make a profit both for you and your franchisees? To succeed, a franchise must generate sufficient returns to franchisees to enable them to pay themselves for their labours, achieve a reasonable return on their capital, including the capacity to repay any loans and pay the franchisor for continuing services. It must generate sufficient returns to you, the franchisor, to enable you to pay yourself for your labours, fund ongoing services to franchisees, and eventually generate a reasonable level of profitability.
6. Do you have enough capital to get the franchise going? Remember that available capital will have to cover:
7. Do you know where to look for expert advice? Lawyers and accountants experienced in franchising, franchising consultants and existing franchisors can all be important sources of information for you when you're considering franchising.
8. Are you good at choosing and coaching a team? Many of the franchisees you select may have no previous experience in running a business, let alone a business of the type involved in the franchise. It is essential that you have the ability to choose the right people and ensure they are properly trained.
9. Have you run a pilot of your concept? Running a successful pilot program - risking your own money and resources - is essential to attracting others to your concept. Without market testing, you have nothing to sell but an idea. Your pilot operation also enables you to establish and fine tune your systems and methods, gather further business and market information you need, and develop your operations manual.
10. Have you developed a detailed operations manual? Your operations manual contains the detailed written explanation of your business system and the way in which it is to be operated. It is used as a textbook when training franchisees and a reference work for franchisees when they are running their own unit.
This checklist is not exhaustive, but if you score a positive response for each question, you are heading in the right direction to decide whether franchising is the right business format for you.
JULY/AUGUST 2003 Franchising
Franchising Checklist
1. Are you willing to accept the responsibility?
Franchising involves taking responsibility for other people's money, efforts, aspirations and careers, as well as your own.
2. Does your concept really have staying power? To endure as a business and be replicable by franchisees, your concept needs to have qualities that mean it can survive the long haul.
3. Does your concept stand out? Your product must have a genuine competitive edge in a crowded marketplace. The uniqueness of the concept itself is improtant, plus the whole marketing package, such as name, brand and image. Your distinctiveness should also carry over to the methods of operation and organisation.
4. Can it be cloned and successfully operated by others? It is absolutely essential for franchising that your system and business methods can be replicated. Any new ideas or changes to your system must also be replicable, and the innovations must blend in with the existing business systems and methods.
5. Can it make a profit both for you and your franchisees? To succeed, a franchise must generate sufficient returns to franchisees to enable them to pay themselves for their labours, achieve a reasonable return on their capital, including the capacity to repay any loans and pay the franchisor for continuing services. It must generate sufficient returns to you, the franchisor, to enable you to pay yourself for your labours, fund ongoing services to franchisees, and eventually generate a reasonable level of profitability.
6. Do you have enough capital to get the franchise going? Remember that available capital will have to cover:
- marketing and advertising your franchise concept to prospective franchisees
- development of systems and training
- development of an operations manual
- capital investment in machinery and infrastructure if needed
- the normal costs involved in setting up any business including registration of a business name, administrative costs and employment of support staff
7. Do you know where to look for expert advice? Lawyers and accountants experienced in franchising, franchising consultants and existing franchisors can all be important sources of information for you when you're considering franchising.
8. Are you good at choosing and coaching a team? Many of the franchisees you select may have no previous experience in running a business, let alone a business of the type involved in the franchise. It is essential that you have the ability to choose the right people and ensure they are properly trained.
9. Have you run a pilot of your concept? Running a successful pilot program - risking your own money and resources - is essential to attracting others to your concept. Without market testing, you have nothing to sell but an idea. Your pilot operation also enables you to establish and fine tune your systems and methods, gather further business and market information you need, and develop your operations manual.
10. Have you developed a detailed operations manual? Your operations manual contains the detailed written explanation of your business system and the way in which it is to be operated. It is used as a textbook when training franchisees and a reference work for franchisees when they are running their own unit.
This checklist is not exhaustive, but if you score a positive response for each question, you are heading in the right direction to decide whether franchising is the right business format for you.
JULY/AUGUST 2003 Franchising
更 多 特 許 經 營 資 訊 - More information about Franchising |
