Introduction

Building your franchise network on a solid foundation is so important for the benefit of everyone involved. All new franchisors set out to succeed, but sadly not all do. There are three equally important pillars to achieving the success we plan for:

1.     A robust recruitment process

2.     A comprehensive induction training programme

3.     A thorough launch and initial support programme.

And those 3 pillars are supported by two key documents namely, the franchise agreement and the operating manual.

Your Key Documents

Operating a robust recruitment process means having a very clear profile of the franchisee you are looking for, such as personality, qualifications, adequate funds to invest, etc. But not compromising too much, especially at the start of your recruitment drive.

The induction training programme must be comprehensive to ensure the franchisee has absorbed the knowledge and know-how that is needed to operate the franchise and monitor its performance. The induction will also explain the day-to-day responsibilities and obligations the franchisor and franchisee have to each other and the wider franchise network.

Franchise Launch 

To get off to a good start, any new business needs a well-planned and executed launch. The franchisor usually promotes the brand to generate awareness in the territory and the franchisee promotes and delivers the product or service to generate repeat business and recommendations. Monitoring the business’s key performance indicators each month will show how effective the training and launch have been, during say the first three months, and will then help to plan the next 3 to 6 months of development activity to achieve the sales and profit targets for both parties.

Franchise Agreement

A franchise agreement that has been prepared by a lawyer with franchising expertise and preferably affiliated with the BFA (British Franchise Association) is very important. Once signed the franchise agreement should not resurface until renewal is necessary. The franchise operating manual is the other document that is important and must be updated regularly to comply with best practices and any changes to laws or regulations. The franchise agreement will set out the responsibilities and obligations of the parties and the operations manual will explain how the franchisee should implement those obligations and responsibilities.