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Top 10 Tips FOR BUDDING FRANCHISORS 1 It's all in the Brand Your brand is key to your success as a franchisor. It is what attracts potential franchisees to your business. Your brand must be defined, consistent and adequately protected. TOP TIP - Get an audit of your brand portfolio and register trade marks. 2 Cut Once - Measure 10 times Not all business models are suitable for franchising. Specialist franchise consultants can advise you on whether your business is franchiseable. But even if it is you should have a test run to flag any areas that may need more work. The lessons learnt in doing this will be valuable for the future growth of your franchise operation. TOP TIP - Set up a pilot franchise operation and run it for at least 6 months. 3 Make sure you look the part Your franchise pack is key to demonstrate your credibility as a new franchisor. It should contain your recruitment materials, your franchise contract, your franchise operations manual and any other contractual documentation. TOP TIP - Get a Bfa affiliated lawyer to advise you on the contents of your franchise contract and operations manual. 4 Get in with the right crowd The key to successful franchising is attracting the right franchisees to your business. Membership of the British Franchise Association helps to associate your business with good franchising practice, a vital factor for the new franchisor. TOP TIP - Join trade groups like the British Franchise Association to demonstrate your status as a reputable franchisor. 5 Do not promise what you cannot deliver It is key that your recruitment and marketing literature accurately reflect the franchise deal that you offer. Discrepancies will not only ruin your reputation in the franchise marketplace but also place you in hot water with advertising standards authorities and liable to hefty fines. TOP TIP - Get a fixed price review of your recruitment and marketing materials by specialist lawyers. 6 Make your contract your bodyguard Franchising is a great way to achieve rapid growth but it is not a way to completely ringfence your risk exposure. There are a number of ways that regulatory bodies can come to you for things done (or not done) by your franchisees. TOP TIP - Ensure your franchise contracts contain ways for you to be compensated if you are penalised for franchisee wrongdoings. 7 Act early if a franchisee becomes insolvent Contact administrators etc and let them know of your claim. Otherwise you risk losing supplies made. TOP TIP - Implement systems that monitor the financial wellbeing of your franchise network and alert you at danger points. 8 Keeping your business, your business is important. You need to be able to rely on what you put into your contracts to protect against competition and poaching. TOP TIP - Get advice before enforcing any covenants or terminating franchise contracts. 9 Plan for Expansion If expansion overseas is part of your plan you should build this in from the outset. For instance consider whether your brands work in the countries where you would like to expand. TOP TIP - Franchising models vary in different countries. Get specialist advice on international expansion. 10 Plan for Exit What is your endgame? If you know it you need to structure your franchise network accordingly. Whether you intend to buyback or sell on. Top Tip - Consider where the value is in your business and how to realise that on exit. Get specialist advice from Bfa affiliated lawyers and consultants on ways to achieve what you want. If you have any queries on the above please contact: Fiona Boswell 0845 070 3812 firstname.lastname@example.org Philippa Dempster 0845 274 6901 email@example.com Whilst every effort has been made to ensure the accuracy of this information, it does not provide complete coverage of the subjects referred to, and it is not a substitute for professional legal advice and should not be relied upon as such.
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