To complete a registration application with Franchise regulators you will be required to provide a significant amount of information about the proposed business. You are likely to be asked for a complete business plan, perhaps audited financial statements, a detailed operating manual for franchisees, and accounts of the management team’s profile and business experience.
One consolation though. is that you ought to have all this information at your fingertips in any event, to have built your own business case, and probably to show your bank, lenders, funders or investors.
Define your model very carefully. The decisions you make now will be difficult to change once you have set your model up and have franchisees in negotiation with you, or on board.
Decide the terms of your franchise agreement, this will define your business and its profitability for a long time to come, so think carefully and do some modelling of the various royalties and fees, bearing in mind you will want to lock franchises into a ten year contract or longer. Look carefully at competitive franchisors, not just in your own sector, and put yourself in the position of potential franchisees, who will have to take the fee package into account when making their own decisions.
Consider the following;-
The structure and level of your franchise fee and royalty rate, management fees, marketing fees.
The territory, or size of territory you will award each franchisee? Continue reading The Franchise Model – Business Information And Plan