Here is a quick rundown of franchisor FAQs, to guide your decision to assess if franchising is right for your brand.
How much time will I have to invest in developing the franchise?
Initially through the assessment phase, there's a bit of paperwork, but we can work with your staff, or investors, to review scalability. Approximately five hours incrementally of your personal time to go through questions. Once a Discovery Day is set up, it would be advised that you are available to meet with qualified candidates in person.
What are the costs associated with developing a franchise?
The cost of our franchise program varies, typically falling within the range of 55K to 100K. Notably, a minimum of 15K from your program investment will be specifically allocated towards initiating the first stage of franchise marketing. To provide you with precise details tailored to your needs, we will prepare a comprehensive proposal outlining the specific costs involved.
What do I get for my franchise program investment?
You will have receive:
An attractive web portal containing:
Prepared legal documents for each province in Canada
A franchisee investment chart for due diligence
Franchise Operations Manual in module form for easy download
Franchise Development Manual in module form for easy download
Test modules with grading capabilities
Training on how to maintain the portal - like adding franchisee's own sign up etc.
A detailed ideal franchisee profile
Marketing collateral for re-use in .pdf and .png form
Comprehensive marketing plan with the latest trend forecasts
A branded and vibrant franchise landing page to capture leads and data analysis that includes detailed steps of the franchisee process
ERP software plan that combines EFT, SaaS, inventory, accounting for franchisees
A detailed expansion plan with essential location amenities based on customer profiles
What are the out of pocket costs pertaining to a franchise start-up?
Yearly web platform, domain and email
Trademark costs
Franchise company incorporation with some funds in new franchise bank account
Renting an event space with refreshments for a Discovery Day (optional)
On-going marketing costs
Monthly software subscriptions and hardware upgrades, if needed
What are the on-going responsibilities for a Franchisor?
It really depends on how hands-on you want to be and how many locations you would like to open. You can hire out for these processes. There's on-going franchise support, location scouting and lease negotiation, product innovation, franchisee meetings, organizing yearly events.
Should I own the lease for franchisees, or should they have their own lease?
There are good reasons to own lease spaces, you have much more control over your expansion and brand when your company is able to buy back franchises. It depends on your comfort level of risk/reward. Franchisors are also usually able to negotiate better lease terms for franchisees that will benefit the franchise overall.
How much money can I make being a Franchisor?
There are many sales verticals for franchisors:
Franchise fee
Royalties
Admin fees
Combined marketing initiatives
Buy backs
Reduction in product costs
Reduction in corporate lease costs and build outs
Exit strategy
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