International Franchise Business Plan

International Franchise Business Plan

As your one point contact, we also help you with all possible documentation. The importance of a business plan is not country specific. Wherever you decide to do business you will need a strong foundation in the form of this plan. This is the master plan on which the phased expansion of the brand is based. It involves all the necessary requisites for the brand to go global. Hence, the conduct of business depends on the foreign demographic and prepared accordingly. As it begins with resource planning, covers structuring the master franchise correctly, defining the roles and responsibilities of the incoming franchises and ends with the measurement of compliances. While there is elaborate work that goes into each of these areas, we would like to elaborate a few of them for your better understanding.

Therefore, while structuring a Master Franchise for the global market these points are covered:

  • Franchise Structure: Country Master Vs Sub-franchise vs. Area Rep
  • The number of units to be opened and territory size should correspond.
  • Require that chosen franchisee open showcase and training unit(s) before selling franchises.
  • To ensure, pre-empt competition short term and long term goals, development schedules are set.
  • The initial term should coincide with or extend just beyond the development schedule.
  • Allow franchisees that complete development schedule on time to renew for one or more additional terms, but retain the right to require the establishment of additional franchises during any renewal term as a condition of renewal
  • Also if the area Rep fails to comply or renew, the franchisor may take over the area or appoint a new rep to manage the area.

 

Duties of a franchisee include (Not Limited to):

  • Contributing to Franchisor’s Franchise lead generation activities, such as advertising on the Web and national publications, preparing videos, and printing brochures, generating additional franchise sales leads,
  • Qualifying these leads,
  • Following up with qualified leads until ready to sign,
  • Filling in blanks in documents for franchisor and franchisees to sign after the appropriate cooling-off periods,
  • Training new franchisees at the showcase unit,
  • Assisting new franchisees with the opening of new units,
  • Periodically visiting with franchisees in an area,
  • Coordinating marketing, testing, and an introduction of new products within an area,
  • Conducting refresher training,
  • Training new managers for franchisees when necessary,
  • Reporting to franchisor on franchisee compliance and recommending termination, if appropriate, etc.

 

While duties of the franchisor include:

  • Coordinating internet and multi-territory marketing for franchise sales leads,
  • Providing lead generation and sales tools,
  • Turning over “local” leads to franchisees,
  • Training in franchise marketing and sales,
  • Training the franchisee in training, assisting, and supervising franchisees,
  • Coordinating system-wide product marketing measures,
  • New developments should be introduced to the market.
  • This should provide area rep
  • Also conducting annual franchise meets, etc.
  • This should include the right of first refusal and transfer provisions
  • This should include the default provisions.
  • It should include the choice of law and venue provisions
  • Therefore, it should include the confidential and non-compete provisions

Hence it is imperative that the franchisor understands the challenges in working in a global scenario and does the required homework before stepping out to ensure that the business is scaled up aptly and takes in the right master franchises.