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You need to prepare a business plan for franchising. The development plan will look at issues such as the structure of the franchise, profile of the ideal franchisee, how to decide on the territories that will be allocated to franchisees, the impact on your staffing resources and your proposed franchisee support system.
How will the franchise opportunity work? What is your role and what should the franchisee be responsible for? Asking these questions will help you to establish the operating guidelines for your franchise.
Following this you can start looking at the kind of Franchise Package you will give to a franchisee.
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Just what is it that your franchise will offer them? Remember to ask yourself whether you would buy into the opportunity!
A full financial analysis will be needed, to allow you to put together financial projections for both your own business and that of the franchisee. These should look at how sales build up over time, profit margins, cost profiles and the management service fees you might charge a franchisee. You should also look at the cash flow of the business and consider the effect of “what if’s”.
If it all adds up then you need to establish an Action Plan to implement the franchise opportunity.
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