Franchisor Best Practices
Franchisor Best Practices
These practices have been identified as "best practices" for which franchisors should strive.
These include:
A Franchise Selection Process:
1 Pre-sale steps taken to match a qualified candidate to the system to ensure that the needs and expectations of both parties are met.
2 Franchisees are adequately informed to ensure that their financial expectations are consistent with the experience they are likely to have.
3 The franchisor strongly encourages the franchisee to get independent legal and accounting advice and provides a reasonable time period during the sales process for all parties to review the offering.
B Disclosure Policy:
1 Franchisees receive a disclosure document.
2 The disclosure document is updated immediately upon any material change.
C Franchise Information Package:
1 Sufficient documented material is provided to every franchisee prospect upon which an informed decision can be made.
2 Extensive assistance is provided for selection of site, lease negotiation and financing.
D Initial and Ongoing Training:
1 Franchisees receive the benefit of a comprehensive training program.
2 Franchisees receive comprehensive and up to date operating manuals that prepare them for all aspects of the business including day-to-day operations, marketing, business development and administration.
3 Franchisees receiving ongoing training to keep them current on industry trends and to better enhance their skills and competitiveness in the marketplace.
4 Franchisees receive the benefit of ongoing support.
5 Franchisees receive the benefit of assistance with “A Grand Opening”.
6 Franchisees receive the benefit of assistance immediately following start-up.
7 Franchisees receive the benefit of refresher courses.
E Field Support/Network Communication:
1 Franchisor provides effective measures to preserve the integrity of the system.
2 Franchisor provides mechanisms for franchisee input and resolution of concerns.
3 Franchisor provides effective store inspections and evaluations.
4 Franchisor provides creation and analysis of budgets and cash flow projections.
5 Franchisor provides system-wide communications.
6 Franchisor provides comprehensive programs for launching new products.
7 Franchisor receives franchisee input into programs and concept development, which can include participation in duly selected franchise advisory councils, special committees and associations.
8 Franchisor has developed and utilizes specific procedures in order to provide administrative, financial and planning support prior to store opening.
9 The franchisor meets the franchisee’s expectations by providing reasonable, attainable financial disclosure based on actual performance of the existing locations, providing disclosure of a realistic forecast for reaching financial break-even.
F Marketing:
1 Franchisor creates and provides marketing strategies and materials that are effective in all geographical regions to assist the Franchisee in achieving profitability and increasing market share. Franchisees must have input along with full disclosure of the use of advertising funds.
G Problem Solving:
1 Franchisor pinpoints trouble through early detection systems.
2 Franchisor provides special assistance for under-performing locations or those franchisees experiencing a personal crisis.
3 Franchisor deals with disagreements between franchisor and franchisee on a good faith basis.
4 Franchisor deals with the disability or death of a franchisee on a compassionate basis.
5 Franchisor provides assistance with financing and renegotiation of loans.
6 Franchisor provides assistance in the renegotiation of leases.
H Concept viability, which may include research and development, innovation, competitive analysis and strategic growth:
1 Franchisor takes innovative steps on an ongoing basis to keep the system concept viable including research and development, technical and marketing improvements, competitive analysis and well-defined growth strategies.
2 Franchisor conducts through market research, analysis in order to determine the viability of each franchised location.
I Corporate Culture:
1 Franchisor puts special emphasis into cultivating and maintaining a “corporate culture” that embodies a spirit of integrity, support, compassion and fair dealing towards their Franchisees.
J Reward and Recognition Programs:
1 Franchisees are recognized and rewarded for outstanding achievements in categories that include sales achievements, quality of operations, and others, on a periodical and ongoing basis.
Franchisor Best Practices - To learn more about this author, visit Peter Macrae Dillon's Website.
Like this article? Share it with your friends
FRANCHISOR BEST PRACTICES
These practices have been identified as "best practices" for which franchisors should strive.
These include:
A Franchise Selection Process:
1 Pre-sale steps taken to match a qualified candidate to the system to ensure that the needs and expectations of both parties are met.
2 Franchisees are adequately informed to ensure that their financial expectations are consistent with the experience they are likely to have.
3 The franchisor strongly encourages the franchisee to get independent legal and accounting advice and provides a reasonable time period during the sales process for all parties to review the offering.
B Disclosure Policy:
1 Franchisees receive a disclosure document.
2 The disclosure document is updated immediately upon any material change.
C Franchise Information Package:
1 Sufficient documented material is provided to every franchisee prospect upon which an informed decision can be made.
2 Extensive assistance is provided for selection of site, lease negotiation and financing.
D Initial and Ongoing Training:
1 Franchisees receive the benefit of a comprehensive training program.
2 Franchisees receive comprehensive and up to date operating manuals that prepare them for all aspects of the business including day-to-day operations, marketing, business development and administration.
3 Franchisees receiving ongoing training to keep them current on industry trends and to better enhance their skills and competitiveness in the marketplace.
4 Franchisees receive the benefit of ongoing support.
5 Franchisees receive the benefit of assistance with “A Grand Opening”.
6 Franchisees receive the benefit of assistance immediately following start-up.
7 Franchisees receive the benefit of refresher courses.
E Field Support/Network Communication:
1 Franchisor provides effective measures to preserve the integrity of the system.
2 Franchisor provides mechanisms for franchisee input and resolution of concerns.
3 Franchisor provides effective store inspections and evaluations.
4 Franchisor provides creation and analysis of budgets and cash flow projections.
5 Franchisor provides system-wide communications.
6 Franchisor provides comprehensive programs for launching new products.
7 Franchisor receives franchisee input into programs and concept development, which can include participation in duly selected franchise advisory councils, special committees and associations.
8 Franchisor has developed and utilizes specific procedures in order to provide administrative, financial and planning support prior to store opening.
9 The franchisor meets the franchisee’s expectations by providing reasonable, attainable financial disclosure based on actual performance of the existing locations, providing disclosure of a realistic forecast for reaching financial break-even.
F Marketing:
1 Franchisor creates and provides marketing strategies and materials that are effective in all geographical regions to assist the Franchisee in achieving profitability and increasing market share. Franchisees must have input along with full disclosure of the use of advertising funds.
G Problem Solving:
1 Franchisor pinpoints trouble through early detection systems.
2 Franchisor provides special assistance for under-performing locations or those franchisees experiencing a personal crisis.
3 Franchisor deals with disagreements between franchisor and franchisee on a good faith basis.
4 Franchisor deals with the disability or death of a franchisee on a compassionate basis.
5 Franchisor provides assistance with financing and renegotiation of loans.
6 Franchisor provides assistance in the renegotiation of leases.
H Concept viability, which may include research and development, innovation, competitive analysis and strategic growth:
1 Franchisor takes innovative steps on an ongoing basis to keep the system concept viable including research and development, technical and marketing improvements, competitive analysis and well-defined growth strategies.
2 Franchisor conducts through market research, analysis in order to determine the viability of each franchised location.
I Corporate Culture:
1 Franchisor puts special emphasis into cultivating and maintaining a “corporate culture” that embodies a spirit of integrity, support, compassion and fair dealing towards their Franchisees.
J Reward and Recognition Programs:
1 Franchisees are recognized and rewarded for outstanding achievements in categories that include sales achievements, quality of operations, and others, on a periodical and ongoing basis.
Franchisor Best Practices - To learn more about this author, visit Peter Macrae Dillon's Website.
Like this article? Share it with your friends
| |||
 |
No article feedback found. | ||
|
Leave Your Feedback | ||
|
|||
 Qualities to Look for in a Franchisor
| |||
| The franchisor is the person who helps you to succeed as a franchisee. So, look for leadership qualities, experience and integrity while searching for a franchisor. |
|||
|
The Ten Golden Rules
| |||
| Advice for Buying a Franchise |
|||
|
Evaluate Complaints Against Franchisors Before Signing The Agreement
| |||
| While starting a franchise business, checking out the legal history of the franchisor is a must. Take the help of your franchise attorney to look into any sort of litigation, bankruptcy and out-of-court settlement t... |
|||
|
Franchisee checklist - assessing the franchisor
| |||
| How does a would-be franchisee assess which franchisor to go with? |
|||
|
Before you Buy: How to Interview Franchisees to Get the Real Scoop
| |||
| The most honest and forthcoming franchisor can’t tell you what it’s like to be a franchisee. So, you should take the time to call existing franchisees and get some candid answers to your questions. Be careful that y... |
|||
| |||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
 Peter Macrae Dillon (Visit Peter's Website) Peter Macrae Dillon is one of North America’s leading and most-respected franchise attorneys. He is licensed to practice law in Ontario and New York. He specializes in advising start-up franchisors in the conversion and early stages of franchising. His group represents mature Canadian and American franchise systems operating in Canada, the United States, and internationally. Email Peter at pe ter.dillon@siskinds.com or visit his website at: www.franchisel aw.ca peter macrae dillon franchise franchisor lawyer attorney Toronto Ontario Canada www.franchisel aw.ca
|  |
 |
|
|
 |
|
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 | ||
 |
||
 |
||
 |
||
|
| ||
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 |
 Online Marketing Course Quick Start Guide Article Marketing EQ Coaching Report Start-Up Capital Estimate |
|
 | ||
 |
Top 50 Niche Blogs 2009
Top 50 Niche Blogs 2009 | |
 |
Top 50 Marketing Blogs
Top Marketing Blogs of 2009 | |
| ||
 |
|
|
|
|
||||||||||||||||||
 |
|
|
||||||||||||
