Franchise Is It For Me - An i360 whitepaper

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A whitepaper to help and guide new investors to check their profile before looking at franchising

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Franchise Is It For Me - An i360 whitepaper

  1. 1. Franchising is a great business model, but it's not necessarily right for everyone. These questions will help you think about some of the challenges surrounding being a franchisee.<br />ATC Support Team<br />franchiseenquiry@i360training.in, <br />bpsupport@i360training.in<br />9311069401/419/9310962319<br />
  2. 2. Questions ?<br />Can you take direction from others? This can be difficult for some entrepreneurs.<br />Are you willing to learn (and relearn) how to run a business?<br />Do you work well with a team?<br />Can you be both the leader of your own business and a fellow colleague of the brand as a whole?<br />Are you aware that you most likely cannot change the franchise according to your own market once you sign the franchise agreement? If you think you would have difficulty dealing with a contract that will control most aspects of your business -- down to the color of the restroom tiles -- you may consider opening up your own small business rather than purchasing a franchise.<br />Answers<br />Y/N<br />Y/N<br />Y/N<br />Y/N<br />Y/N<br />
  3. 3. Questions ?<br />Are you willing to work with the advertising, marketing, and promotional material supplied to you by the franchisor - even if you think you could come up with something better?<br />Do you have the personal drive to start up and run a business? Even at 70 hours per week?<br />Can you procure the necessary capital resources to support yourself and your family through the ups and downs of starting a new business?<br />Are you comfortable both hiring and firing people?<br />Are you prepared to accept required monthly financial reporting to the franchisor?<br />Answers<br />Y/N<br />Y/N<br />Y/N<br />Y/N<br />Y/N<br />
  4. 4. Questions ?<br />Have you discussed the sacrifices that would be required of you with your family?<br />Is your family in agreement with your decision to start a franchise?<br />Are you comfortable with the loss of company benefits such as health care, retirement, vacation or sick leave?<br />Are you in good health?<br />Do you ready to accept responsibility for your financial success?<br />Y/N<br />Y/N<br />Y/N<br />Y/N<br />Y/N<br />
  5. 5. Planning to take a franchise ?<br />
  6. 6. Owning a franchise business means <br />The right to use a company name <br />and <br />sell the company's products<br />Franchisor is<br />Someone who sets the standards and makes marketing, advertising and internal decisions<br />
  7. 7. Advantage of taking franchise<br />Your business is based on a proven idea. You can check how successful other franchises are before committing yourself.<br />You can use a recognized brand name and trade marks. You benefit from any advertising or promotion by the owner of the franchise - the "franchisor".<br />The franchisor gives you support - usually including training, help setting up the business, a manual telling you how to run the business and ongoing advice.<br />You usually have exclusive/shared rights in your territory. The franchisor won't exceed the sell to more than 2-4 franchise defined for your region ny other franchises in the same region, though there will be competition from other businesses.<br />Financing the business may be easier. <br />Risk is reduced and is shared by the franchisor.<br />
  8. 8. Assess yourself<br />You must be prepared to sell. A franchise gives you a business blueprint - but it won't give you customers.<br />You'll need to work hard, probably for long hours. Do you have the necessary stamina?<br />Running your own business can be stressful. Think how you react to pressure.<br />You may be starting up in business because you want to be your own boss. If so, would you be happy with the restrictions imposed by a franchise arrangement?<br />On the other hand, you may want to limit your risk. You might be more comfortable with a franchise than starting a new business from scratch.<br />
  9. 9. how to select and buy a franchise<br />Dos<br />Assess yourself to see what kind of franchise, if any, will suit you.<br />Find out what franchises are available.<br />Assess franchise opportunities carefully, ask questions and talk to other franchisees.<br />Investigate the financial prospects for the business.<br />If you'll need to raise bank finance, ask your bank if it will consider a loan for the type of franchise you're considering.<br />Do your own market research into customers and competitors in your area.<br />Draw up a business plan.<br />Check the franchise agreement and get professional advice.<br />Don’ts<br />Take up the first opportunity before investigating alternatives.<br />Allow yourself to be hurried into making a decision.<br />Commit yourself before you're completely satisfied.<br />Assume a business will work in your area just because it works elsewhere.<br />Rely on the forecasts provided by the company selling you the franchise.<br />Sign any agreement without legal advice.<br />
  10. 10. Top mistakes done by Franchise after taking it<br />Business Ownership title Issue<br />No spend in local area marketing<br />Leaving setup to be run by Centre teams<br />No Staff, owner runs everywhere<br />Trainers/Staff not retained<br />Waits for franchisor to work on ground<br />Fights with franchisor for XYZ, ABC, issues etc…<br />Operational costs not accounted for while buying franchise<br /><ul><li> Business ownership disputes
  11. 11. Leads to low accountability
  12. 12. Teams leave
  13. 13. Center operations in Chaos
  14. 14. Visibility of centre is not there & doesn’t improves them by
  15. 15. Working on the ground
  16. 16. Alliances with Students, Institutes
  17. 17. Planning to student acquisition marketing programs
  18. 18. Centre management outsourced
  19. 19. Business Partner is busy
  20. 20. in some other business
  21. 21. Serving personal goals/Family issues
  22. 22. Out of station for few months
  23. 23. Contesting elections
  24. 24. Staff related issues
  25. 25. Very strict/insulting//abusive with Staff
  26. 26. Pays low salary/Un-hygienic work environment</li></li></ul><li>Franchise tips summary<br />"Don't assume a franchise is an easy, risk-free option <br />You'll be running your own business with all the responsibility and hard work that running a business entails.“<br />Following franchisor guidelines can make you successful<br />Follow startup, operational, academic procedures<br />Staff recruitment & training guidelines<br /> Local area marketing is a role of franchise<br />Working hard on ground <br />Alliances as key to success<br />

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