Why use the services of a Franchise Consultant?
Posted 09/03/2017 : By: Debbie Dennis
In every area of life, we need to make decisions on whether to ‘do it ourselves’ or ‘hire a professional’.
Service the car - probably not, paint a wall - maybe, draw up your will – not if you want to avoid problems for your family.
And so, it is with developing your franchise offering – to avoid costly problems with your franchisees you need to address every aspect of the offer, the support programme, and the legal agreement to make sure that you have an answer to every eventuality that may occur.
Whilst there is no government intervention or legal framework specifically for franchising you still must be aware of your obligations under English Law, and the Laws of Misrepresentation, which can, if ignored, ruin your business and your dreams overnight. The British Franchise Association has a Code of Ethics, which if followed will protect you and your franchisees.
So – what are the steps you need take to protect yourself, your business, and ultimately your franchisees.
First, you need to decide what your franchise will look like, and what you will give to your
franchisees that they cannot readily get for themselves. Is this an owner operator franchise, where the franchisee does the job, or a management franchise where the franchisee has employees doing the job? How big is the territory and how long is the agreement?
You need to devise a franchise package which will include a licence to operate under your business name, training, launch marketing and all the assets that the franchisee needs to start their business. The sum of money you charge for the franchise must reflect value for the franchisee and must give him a reason for not setting up the business on their own.
Secondly, you need to decide how you will support your franchisees, the contents of the on-going support package, and what fee you will charge for this.
And thirdly, you need to devise a prospectus and recruitment plan, training programmes, and marketing plans.
The work done is then the basis for your legal agreement, which your consultant will help your lawyer to write.
A bfa (British Franchise Association) Affiliated Franchise Consultant will have gone through this process dozens of times, and knows exactly how to develop your franchise quickly, efficiently, and most importantly safely.
Working to the bfa Code will give peace of mind not only to you but to your potential franchisee, which is vital when recruiting.
Paint your own walls, there is little risk, but don’t risk your business and livelihood by trying to short circuit your franchise offering – it will only end in tears.
By Ashtons Franchise Consultant Richard Langrick