How to open a franchise business: pros and cons, step by step instructions. What you need to open a franchise business - step by step instructions What kind of business can be opened by franchise

Franchising is considered one of the most successful forms of entrepreneurship, in which commercial activity is based on the acquisition of rights to use trademark and completed business plan.

What does it take to open a franchise?

Opening a franchise requires some funding. To start your own business, you need to have start-up capital covering the current costs of concluding an agreement and making priority contributions. possible with the help own funds, state subsidies or a bank loan.

Interesting fact: many banks are willing to help entrepreneurs open a franchise business and allocate the necessary cash. Lending to franchise systems has the lowest degree of risk and is more secure than other loans to small businesses.

To open a franchise business, first of all, you will need to choose the legal form of the enterprise and register with the Federal Tax Service.

The next step is to make a one-time lump-sum payment. This amount covers the cost of using the trademark or brand for a predetermined period.

The lump-sum fee consists of the current costs that the franchisor's side will incur when granting and registering a franchise for the second side.

Price lump sum payment will depend on:

• the degree of support and the concept of the franchise system;
• fame and popularity of the brand;
• conducting marketing research and developing an existing business strategy;
• lease and arrangement of premises.

Additionally, the signed agreement will specify the amount and terms of regular periodic payment for the use of intellectual property. These payments have the designation "royalty" and can be paid according to two conceptual schemes:

• as a percentage of gross profit;
• as a fixed amount.

How much does it cost to open a franchise

The cost of acquiring such a project will directly depend on the popularity of the brand and its position in the market. Of the entire list of what can be opened under a franchise, establishments are considered the most popular and profitable. fast food and fashion chains.

The amount of the lump-sum fee for medium-sized franchises starts from 150,000 rubles. For comparison, Adidas franchise costs $20,000, while the popular coffee chain StarBucks costs $150,000. Each franchisor sets its own financial target, based on the franchisee's possible profit and the economic effect for the brand owner.

Is it worth opening a franchise?

Franchising as a form commercial activities, is the most cost-effective and effective way running a small business. Both parties to the contract receive profitable terms for your development. The franchisor, as the owner of his own brand, acquires the opportunity to open new sales markets and attract new customers to his products.

The franchisee, meanwhile, receives at its disposal a ready-made operating scheme for starting a business, as well as active support from the franchisor and assistance in resolving strategically important issues.

To avoid mistakes when opening a franchise, we recommend watching the following video:

The franchise business is becoming more and more relevant, and for good reason. It is noteworthy that this option is chosen by both beginners and experienced entrepreneurs, and this is logical. The first do not want to bother with the development advertising materials, organizational and documentary details, and the latter, in turn, have already "stuffed bumps" in their previous activities and are well aware that it is better to invest your money in a proven business scheme that has been successfully working for many years in a row.

There are a lot of offers on the franchise market today, and at the moment there are several hundred of them in Russia. It is only important to study very carefully what interests you the most, since there are also little-known and sometimes simply absurd ones.

Moreover, we are talking about Moscow, where there is a lot of competition and, perhaps, branches under a certain brand have already been opened. However, sometimes franchisors allow this type of business, because it is beneficial for them to expand it.

How to choose the right franchise for Moscow?

Ideally, if you are already familiar with a particular type of business and are well aware of all its pros and cons. If practical experience no, you need to study the maximum information about the franchisor. For example, to begin with, visit the office (shop) of the company under the guise of a client, to see how it all looks in reality. You may be able to communicate with franchisees who already work under this brand. Read reviews about the franchise, find out how many branches are open under it. As a rule, under the name of developed and successful companies dozens or even hundreds of franchisees work, because profitable business stable and worked out to the smallest detail.

In the end, think about what exactly you like, and in the most free form. Do you like coffee or sweets? Then you will be able to open a cafe or coffee shop with great success and pleasure. Do you like to draw or are you interested? Today, there are more than enough franchises in these niches.

In the case of Moscow, it is generally very easy to choose a franchise, because there are both elite areas with wealthy residents and peripheral places where budget goods and services will be in better demand among the local population.

In fact, any type of business can be franchised, and this is often one of the goals of any experienced entrepreneur. Expanding your business while getting a good percentage and greater recognition is the best result for many businessmen.

Money to start a business in Moscow

Naturally, the choice is also influenced by the size of the budget that the entrepreneur has. It’s good if there are several million rubles in reserve and it’s not scary to lose them, but what about those who do not have decent start-up capital? Fortunately, there are several options for starting a business in Moscow today. In particular, you can attract money from outside, for example, in the form of a subsidy or grant for business development. Credit can also be called additional opportunity, but here it is worthwhile to approach the issue very competently, because in this case the entrepreneur risks not only to burn out, but also to remain with large debts. In Moscow today there are various business incubators and centers to help start-up entrepreneurs. Of course, there are also a lot of private investors in the Russian capital, who may be interested in a particular direction. It all depends on the profitability of the business and how the entrepreneur will present it to a potential investor.

Advantages of a franchise business in Moscow

Moscow is exactly the city where people look at the brand more often than at the price. It is quite natural that there are already fans of a particular brand (company) here, so it is very easy to find a target audience for a franchise business here. Surely in some particular area there are people who are forced to travel to the other end of the city in order to taste their favorite specialty dish or, for example, buy clothes from their favorite brand. Naturally, they will be very happy if a company store or a favorite coffee shop opens in their area. Moscow is known to be very big city, so here you don’t always want to stand in traffic jams or take the subway to the right place.

Buying a franchise, the entrepreneur joins in trading network or becomes a representative of the company that provides him with full consulting, marketing and legal support. Equipment is provided, and sometimes assistance is provided in the selection of premises and staff.

By opening a franchise business, a person joins a business that successfully brings profit not only to the franchisor, but also to the partners of the company. Invaluable advice on general issues can be given here, and, if possible, you can exchange experience with other franchisees. It's definitely better than getting into an unfamiliar kind of business without any support.

When working on a franchise, an entrepreneur does not need to come up with a business idea, because everything has already been worked out and tested in practice more than once. There is a clear business strategy and it is enough just to invest start-up capital. Today there are many franchises that are great for entrepreneurs with no experience in business and personnel management.

A proven way of business development is an opportunity to save on marketing research, market analysis and study of brand popularity. If the niche is in demand, then the profitability of the business will be obvious. Some franchisors provide truthful data on expected income and payback periods. They have no reason to deceive their franchisees, because any owner big company interested in the development of his brand.

It is noteworthy that the representatives of the franchisor can draw up an individual business plan for a particular branch - this will clearly determine all costs. In addition, a design project can be developed outlet and the whole scheme of cooperation in the case of a franchise is usually signed in detail. This will reduce many of the risks that can be quite significant in any kind of business.

Do not forget about the advantages of franchising in the sense that the franchisor is a reliable guarantor when obtaining a loan or subsidy, because any investor or lender understands that a well-known brand is the key to stable and high income. Sometimes franchisors can officially confirm the fact of cooperation, and this is a good help in obtaining investments.

Cons of a franchise business in Moscow

Sadly, franchising has its downsides as well. Moreover, if you do not know them, then you can easily “burn out” at the earliest stages of work.

Probably the most significant disadvantage of any franchise is that the future of the business directly depends on the franchisor. That is, if the owner of the parent company decides to stop its activities, then the entire network will automatically be closed, regardless of the number and profitability of branches. To protect yourself from this moment, you should carefully study the terms of franchises. In particular, some agreements explicitly state the terms for using the franchise and talk about compensation for damage in the event that the company's activities are terminated.

Do not forget about such moments as royalties and advertising fees - they are somewhat similar to loan obligations, especially since they must be fulfilled constantly and throughout the entire period of cooperation. Often, these payments are a fixed amount that is paid regardless of profits, so paying royalties is not always easy. However, there are also franchises that do not imply any deductions - when buying a business, a one-time and fixed amount is paid.

The downside can also be called a strong dependence on the franchise owner. Obviously, there may be tight control on the part of the franchisor and the entrepreneur can sometimes feel like a hired employee. On the one hand, this can positively affect profits, but at the same time, the franchisee will be forced to work within narrow limits, constantly reporting to the head office and unconditionally following corporate rules. In addition, dependence here also implies that the prosperity of the franchisee's business directly depends on the demand for the brand. Therefore, if they start to appear negative feedback or news about the parent company, then the shadow will fall on all its branches, and this, again, is fraught with the loss of customers. Again, if we are talking about Moscow, then control can be stronger, and attention - more. It is natural that all business processes here go much faster than in small towns.

The total investment when starting a franchise business is often more than when starting from scratch. When buying a franchise, you will have to pay an initial fee, buy goods and various marketing materials. When starting a business on your own, these costs may not be required, and in general you can save a lot, because in this case you have complete freedom of choice.

What is important to remember when opening a franchise business in Moscow?

Based on the foregoing, we can make a fair conclusion that it is better to choose a franchise business that better meets the individual criteria of an entrepreneur. As we said at the very beginning, today in Russia, however, as well as in Moscow, hundreds of franchises are successfully operating, so it is difficult to give recommendations on which one is better to choose. You should build on, at a minimum, the financial possibilities and conditions offered by the franchisor. It is necessary to carefully study all the nuances of such cooperation, and only then it will be possible to say that this partnership will be more likely to be successful.

Both experienced entrepreneurs and newcomers choose between opening a franchise store and own business plan. The main advantages and disadvantages are considered on the example of 3 most popular retail franchisors in Russia: Pyaterochka, Perekrestok and METRO Fasol.

How to open a franchise store

Basic terms and concepts that you need to know in order to open a franchise store.

Before choosing a partner, you need to evaluate the strength. The franchisor will require the fulfillment of a number of conditions enshrined in the contract. Failure to do so will result in sanctions.

Experienced entrepreneurs choose according to the marketing package, get acquainted with the conditions, and make a purchase decision only after carefully reading the cooperation documents. You can ask a lawyer for help.

Franchise VS self-discovery

By opening a franchise store, a businessman saves time and effort, but not money. He gets a run-in business model. This is convenient for those who are not launching the first project, and, for example, in order not to depend on one direction, they choose another, little known one.

The lump sum pays for the time that the entrepreneur would have spent identifying the nuances. However, experienced businessmen do not perceive requirements and rigid frameworks well.

Franchises protect inexperienced entrepreneurs from mistakes and teach the basics of managing companies. The mentor guides and supports the junior partner, not allowing them to make big mistakes. At the same time, the business is constrained by the ideas and intentions of the franchise owner.

For those who are tired of hired work and the dictates of the authorities, an independent discovery is suitable. In this case, the entrepreneur is the creator. Creates its own unique business mechanism. Saves 30% capital and spends 1.5 times more time.

Rice. 2. Sample layout in the store "Krasny Pischevik"

Advantages and disadvantages

Advantages:

1. The franchise buyer receives guaranteed assistance from his franchisee. Consultations are valuable because the franchiser is constantly calibrating the terms of his product and business format. Learn from your own and partner's mistakes. Implements changes. Leads a novice entrepreneur to the first result.
2. No need to come up with new ideas and development strategies. You only need basic knowledge in the area chosen by the franchisee.
3. Before opening a franchise store, there is already an idea of ​​the popularity of the product, the promotion of the brand. Niche testing and loss of test resources are unnecessary. Reducing marketing costs.
4. There are cases of obtaining a loan to finance the start-up capital of a junior partner. The collateral for such loans is the property of the senior partner and a surety. Otherwise, it is impossible to get money from the bank for a startup.
5. The franchisee receives a detailed business plan. Calculated profitability and initial costs. Understand the payback period and return on investment.
6. Large franchises limit the number of partners per locality. This partially removes dependence on competitors.
7. Advertising support. The founder of the franchise, at his own expense, conducts advertising campaigns and brand promotion. This gives recognition to the network of its stores in every city.
8. Ready bases suppliers, goods, contractors.

Disadvantages that lead to failure or force a novice businessman to refuse to buy a franchise:

1. The dependence of the business on the founder of the franchise. The development strategy remains in the hands of the brand owner.
2. Initial requirements for opening a franchise store. Renovation of the premises in the chosen style, uniforms of sellers, amount of initial investment.
3. Dependence on the state of affairs of the entire network in the market. The actions of other partners or the franchise owner may affect the chain's reputation. Poor quality service or products will scare consumers away from the brand.
4. The price includes the profitability for the franchise seller. Costs for advertising, personnel, communications, etc. increase the price. A business in which a business is a commodity also has profitability and margins. In other words, a similar project will cost 25-30% less if you enter the market on your own.
5. Periodic royalty payments. They reduce profitability for the store owner.
6. The contract establishes the rights and obligations of the parties. In case of deviation from the agreement, the parties bear additional costs and fines.

Opening stages. Step by step plan.

Overview of three retail franchises

Reference. Reverse franchising - view entrepreneurial activity, in which the one who bought the franchise receives periodic payments. The buyer is an investor. The franchise seller opens a subsidiary at the expense of the buyer.

Outcome. The advantage of opening a franchise store is Information support. A novice businessman follows a well-trodden path, and a senior partner, interested in his development and profit, tries in every possible way to protect the “junior” from problems and dangers.

Large franchisors provide round-the-clock support, hold gatherings and conferences, introduce innovations, share document templates and best practices in business processes.

Franchising differs from other ways of doing business in that 90 out of 100 franchised businesses not only live for more than one year, but also operate at a profit. For comparison, only 15 out of 100 innovation-related startups make it to the end of their first year of existence. Although 7 of them go on to make crazy profits, there is an 85% chance of going bust. To open a franchise business means to act reliably - the enterprise will bring not fantastic, but good profit, and guarantee financial stability.

Where to look for franchise offers

In what area to open a business

One of the trends in the franchising market in recent years is an increase in offers Russian companies.
Cafe and restaurant franchises, especially fast food businesses, remain the most popular options.
The second place is occupied by franchises of goods and services for children. The number of offers in the category of sports, beauty and health increased by a third.
Verified option - open medical laboratory where you can quickly get tested.
Slightly less attention to options in the field retail food and household goods.

It's important to know! Lost positions for Last year apparel, footwear and jewelry franchises - business growth in these segments declined by 45%.

Evaluation of supply and demand in the selected niche

Before you open a business, it is important to decide where your business will operate. Big city or small? Assess the purchasing power of the population - if people earn little, they will not be able to afford an expensive boutique or an elite restaurant. Determine the size target audience. If the number of potential customers is less than 2% of the number of people living near the enterprise, the profitability of the business is at risk.

It is a risky venture to open a business in a small town that requires highly qualified specialists. As a rule, they quickly leave for megacities. In a small town, you need to carefully monitor your reputation, because information spreads quickly.

Public service business ideas

On the other hand, Big city- this is expensive rent, high salaries, fierce competition, including for promising premises, and additional advertising costs. Without huge investments, it is impossible to obtain exclusive rights and defeat competitors here.

Which business is better to open in a small town:

• economy class hairdresser;
• sushi shop;
• children's development center;
• casual clothing store.

How much does it cost to open a franchise business: financial assessment

The amount of initial investment is the cost of rent, design project, renovation of premises, purchase of equipment and / or products, staff training, marketing. When buying a franchise, these costs will be halved. The franchising program, as a rule, includes: a design project of the premises, employee training, a brand book with layouts of promotional materials, and much more. For this support, the future partner must pay a lump-sum fee - a one-time payment for the right to work on a franchise. It is up to 10% of the cost of starting a business. There are programs without a lump-sum fee, when the initial payment, as a rule, is included in the mandatory purchase of a minimum lot of goods or equipment.

Franchising also includes the operational support of the partner by the owner of the program - the cost of brand advertising, research, regular consultations, evaluation of the effectiveness of the enterprise. For support, the franchisee pays royalties - a payment every month in the form of a certain amount or a percentage of turnover / profit. As with the lump sum, royalties can be in the form of monthly product purchases or advertising fees.

• inexpensive sweet fast food (waffles), takeaway coffee shop;
• legal consultation;
• advertising services;
• business to business, such as certification services;
• tourist agency;
• sale of plastic cards.

Analysis of proposals and negotiations

Important! If there is no franchise offer on the official website of the company, it does not exist. The company develops the network independently.

Franchises to Avoid:

1. fakes. Fraudsters copy elements of a well-known brand and make a similar offer. A naive entrepreneur enters into a deal to open a franchise business. Not only does fake have nothing to do with famous brand, its real owner can sue the franchisee.
   Examples of such franchises: ZaraZara, Eurosvyaz, etc.
2. One-day. An offer, very tempting on paper, is created for one purpose - to sell it and disappear into the distance. In order not to fall for the trick, look at the date of creation of the franchisor company and the start date of the franchise sale. If the company and trademark were registered almost yesterday, refuse.
3. Not ready-made franchises . This is an offer from a young company that honestly conducts business, but it does not yet have experience, proven business processes and normal support. The company may close itself soon, and with it the franchise program.

Important advice! Don't use a business plan for a franchisee that was written by a brand owner.

In the United States, by the way, it is forbidden by law to guarantee a specific income to a franchise partner.
It is useful for the future franchisee to research the market and make calculations. Often the task of the franchising division in a company is to sell more offers, and profitability figures may turn out to be overly optimistic. Do not take the promises of the franchisor on faith - check the information.

What kind of business from scratch can be opened in the village?

A future partner should communicate not only with company employees, but with other franchisees. It will not be superfluous to come to the place and see how the enterprise functions. Feedback from franchisees - current and former - will help you make the right decision. If the owner hides the contacts and location of his franchisees, it is a bad idea to open an affiliate business with him.

Signing an agreement with the owner of the brand

When an entrepreneur is ready to buy a franchise and open a business, the parties enter into an agreement. In the legislation of the Russian Federation there is no agreement on franchising, cooperation should be regulated by a commercial concession agreement. According to statistics, only a fifth of all franchisors offer partners such an agreement. However, if you are given a supply agreement to sign or information services- this is a reason to doubt whether the relationship of the parties is franchising.

On the basis of a commercial concession agreement (CC), the franchisor transfers intellectual property (brand, trademark, technology) to the partner under certain conditions without worrying about its safety. The QC agreement, in turn, secures the right of the franchisee to benefit from cooperation, while the supply agreement does not guarantee the privileges of using the brand.

The future partner needs to check the registration of the franchisor's trademark with Rospatent. The document specifies the rights and obligations of the parties, the terms of payment. A deferred payment may be granted for the payment of the lump-sum contribution. Look at the duration of the contract. For example, Subway enters into a QC contract for 20 years. But most owners prefer a period of 3 years. That is, by the time the franchisee begins to receive the greatest profit, the agreement will come to an end.

“- Do you have scripts, regulations or instructions for future franchisees? “Young man, understand, it doesn’t matter!

The main thing is the idea and its sale, and everything else is tinsel. I need plowmen! People who will buy and figure everything out themselves.”

This is exactly the kind of dialogue I recently had with an entrepreneur who needed to create a franchise.

And these are no exceptions, many do not understand that this is a more complex process, and you need to approach it systematically for the successful existence of your future network.

The entire dialogue described above ended with the words in my direction: “Ugh. I thought you were a professional."

And fortunately, yes, I am a professional. And I understand that packaging a franchise is not just about taking the business idea that you have and trying to “infect” it as much as possible. more people for their own money, and then watch whether it goes or not.

And subsequently listen to constant complaints from them that “There are no clients” or “Why did I buy a franchise from you, return the money!”.

No, packing a franchise means collecting everything you need from your business for an effective and profitable sale, while not forgetting that all this is needed not only for show, but also for successful work future franchisees.

Therefore, get ready for the fact that collecting and packaging your business is a long and complicated process that you need to prepare for in advance.

After all, it contains a large number of activities, ranging from the development of the concept of a franchise to the creation contextual advertising to attract buyers.

VERY FAR

The founder of our agency, Nikita Zhestkov, always says during consultations that in order to grow a business in competitive environment You need to initially focus on 2 things.

But their entrepreneurs basically ignore: studying (defining) and.

And in fact, this is very important, although in theory everyone already knows this. But in 99% of cases they ignore it, chasing chips. After all, it's boring, not necessary, and a million more reasons.

Believe it or not, there is also a boring theory in the franchise package, which I will start the article with. After reading and understanding which you will understand how to ideally pack a franchise.

I will give you everything only the most important, we will leave the tinsel for other blogs. So we start.

Combat readiness!

Ask yourself the question right now: “Why should people buy your future franchise?”. The answer to this question is a boring theory.

There are only 4 global reasons on the basis of which people decide to buy a franchise:

1. Famous brand. Every normal owner understands that if he opens a McDonalds franchise, he will definitely pay for it in the near future, because customers will always come to this brand.

   There are such companies in every field, and the conditions for their acquisition are the most aggressive and strict, but this does not prevent them from being successfully sold.

2. Unique product. Sometimes it's easier to buy or join a ready-made solution (such as creating a turnkey franchise) than to develop it yourself.

   For example, the well-known 2Gis directory is a franchise that people buy because it will take years and millions of dollars to develop such a project. By the way, the franchise of this brand starts from 300 thousand dollars.

3. Well-established business model. A clear input amount, exact payback periods and run-in results in more than one city - all this also affects the decision to purchase.

   That is, when buying such a franchise, people want to be sure that they will not burn out, because everything works without failures, like a Kalashnikov assault rifle.

4. Franchise cost. By default, people want to invest less and earn more.

   That's why minimum amount entry matters, but this does not mean that if the franchise is expensive, then no one will buy it. It's just that the lower the cost, the wider the market and the easier it is to sell the idea.

You already have a logical question: “Why do I need to know these reasons?”. The fact is that if you have a question about packaging and selling a franchise, then you first need to understand at what stage your business is.

And what can you offer future franchisees. And as a result, find your forte and reinforce it.

Checking prof. suitability

To make it easier for you to determine how ready your business is for franchise packaging.

Here is a list of short, but very, very important questions, after answering which everything will fall into place, and there will be no unnecessary expectations about the success of the idea (as a rule, all owners fly in dreams that everyone needs their franchise):

1. Is your company famous?
2. Is your brand/trademark registered?
3. Do you have a unique product?
4. Do you have all the calculations for investments and expenses in a positive and negative scenario?
5. Do you have a proven business model with sustainable profits?
6. Do you have success stories in other cities?
7. Do you have a working customer acquisition system?
8. Do you have all the documentation for working with personnel?

These are just 8 questions, they do not reveal many details (which we will talk about next).

But on the other hand, it is already clearly visible that it is not enough just to make and set it up for it.

You will have to go quite a long way to the landing, although even in our case, the site is only the beginning of the end.

WE ARE ALREADY MORE THAN 29,000 people.
TURN ON

A 1000 MILE WAY

Let's say you are ready, or rather, your business works like clockwork and brings a stable profit. And it can successfully do it in other cities and countries.

And the brand is already known outside your region. Well, that's great! It remains only to pack it beautifully and sell it.

If you think globally, then there are 5 steps in packaging and selling a franchise.

Each item consists of many small actions, but in more detail I will analyze the first 3, however, I will focus on the two that are lagging behind.

Since if you plan to sell not one or two franchises, but at least several dozen, then you will have to constantly refine and improve the packaging of your franchise (and, as a result, raise the price for it).

Finished material. We have prepared a document for you complete list actions for packing franchises --->

To fully understand it, you definitely need to read the entire article below. So let's go.

Step 1. Preparation

Packing a business into a franchise means fully prescribing all business processes and systematizing your business.

Therefore, if your business is in complete chaos and everything rests only on you, then I dare to disappoint.

The future franchisee will not be able to act like this, because he does not have your experience and ingenuity, he just buys all this in packaged form.

1.1. Conduct an audit

Any planning does not begin with setting, but with determining what is now.

Therefore, you need to conduct a detailed audit of your business before starting, which will allow you to understand what position it is in now and what needs to be done. To do this, you can go through a series of questions from our article.

You will most likely skip this step if you are packing the business yourself, but any decent franchise packaging agency will definitely start with this.

That is, it will not only ask what you have from the documents, but will also try to get out of you everything that is needed for potential franchisees, and you simply did not think about it.

1.2. Prepare Documentation

Agreement between you and the franchisee. This is a very important and crucial moment, so you will 100% need to consult a lawyer who understands franchising issues, because there are a lot of subtleties that can then get in your throat.

For example, you can first patent your trademark and sell a franchise after that (and this is a year of waiting), or make an agreement with a future franchisee in the form of a transfer of know-how and sell it tomorrow.

Accounting documentation. Namely 2 financial plans. Why 2? The first one will be for future franchisees and will show how your (their future) business is financially profitable.

And in what terms the investments will pay off (it is this document that franchisees are asked to look at first of all, and professional accountant and figures from your real business).

The second one is financial plan your future franchise. It is in it that you must calculate how much you will sell the franchise for, what royalties and lump-sum contributions you will have.

Important. Majority successful franchises make money on royalties, not lump-sum contributions.

Just in case, a lump-sum fee is a payment from a franchisee to a franchisor for acquiring a franchise. Royalties are monthly payments that the franchisee pays for using the franchise (% of turnover or a fixed amount).

1.3. Prepare the standards

Decorations. If you have form style, then it must be issued not only in, but also in (guidance for using corporate identity).

Also, don't forget that if you have a logo that you use, then you need to register it too. And actually it is very important.

For example, one of our clients decided to pack a franchise and went to register a logo, but he was refused, because his worst competitor registered his logo a year ago, but already on himself.

I will keep silent about their disassembly, but the fact that because of this he lost a lot of time and most of his fame (he started selling franchises with a new logo) is very important.

Works. You must have regulations job descriptions, work standards, systems for hiring and adapting new employees.

And it should not be in your head, but on paper. And if it also includes video instructions, then that's even better.

For some, this may seem like tinsel, but if you want to be like Ikea (a huge brand), then do it like Ikea. And they have the same documentation at the opening of each new store - 12 large trucks (no jokes).

1.4. Prepare the system

Traffic. This will include not only and. The methods may be different.

From posting your franchise on various specialized sites like Beboss.ru, to creating a Youtube channel that talks about your business.

Laughter laughter, but we have a client who has already sold more than 30 franchises, using the Youtube channel as the main way to attract customers.

Sales department. The site and traffic create leads (applications), and then your employees must process them and turn them into real buyers.

And plant a person with the words “I gave you a fishing rod and the sea. And you sell” will not work. You need to do for them, write and acquaint them with all the above developments.

Step 4. Optimization

If you're spending more on acquiring one client than you're earning from the franchise, then something is wrong.

That's exactly what McDonalds was all about, until founder Ray Kroc met a financial advisor who took it upon himself to optimize the approach.

You can find all these details in the film “The Founder”, where the path of creating this franchise is described in some detail and authentically.

In tracking how much money you spend on attraction and how much you earn, you will be helped by:, and.

Of course, these tools must be used in ordinary business, but when starting a franchise, they are simply mandatory, since the cost of attracting a client is much higher, which means that the cost of a mistake is also high.

The optimization process is not just long, it is eternal. This is preceded by hundreds of reasons: the market is changing, new competitors are entering, advertising channels are becoming obsolete, the area is becoming less popular (or vice versa), and so on.

Therefore, when starting to create a franchise, you must be aware that you are starting a new business.

Step 5Scaling

Did you sell your first franchise? My congratulations! You paid back the money to create it. The next sale will pay off the money spent on its advertising.

And as franchises grow, you will need not only your own sales force, but also a training center.

And even a dedicated marketer who will constantly refine and improve marketing materials and engage in attracting customers to sell the franchise.

For example, our client maintains more than 30 franchises with a staff of 5 people. It consists of a marketer, HR, programmer, 2 curators.

And that's not counting outsourcing specialists and sales managers. Of course, these positions may be completely different for you, but a separate office will definitely come in handy for them.

In the ideal picture of the world, this is when all processes will go only from your head office.

Thus, although you will increase responsibility for the result of each franchisee, but in this way you will regulate everything that everyone does, and globally everything will look like a single organism, and not like that, who is in the woods, who is for firewood.

BRIEFLY ABOUT THE MAIN

One of our clients, before contacting us, acted rather unusually, namely, in order to figure out what a real franchise is, he bought it from a very famous company in the field of bakery at home.

So he decided to see what documentation they would give him, how they would help with marketing and at the same time open a second unpretentious business.

What he saw amazed him. Rather, I was struck by the complete absence of everything.

All that was given to him were recipes, contacts of suppliers and a minimum amount of equipment.

As a result, he somehow sold this business at a loss, but he came to us with the words: “I don’t want to sell such a franchise, make me a good one.”

It is these words that reflect the general opinion that 60-70% of franchises sold are garbage. And there is.

Therefore, if you do not want to sell garbage, but want to make a good packaging for your franchise, then stock up on patience and money.

According to statistics, the first franchise sold just pays for the cost of packaging it, but one is only the beginning of the journey.