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Typical Franchise Package

The franchise package is the sum total of the intellectual property and practical assistance the franchisor provides to franchisees. It can be categorised as follows:

Access to the franchisor’s intellectual property

This includes the right to use the network’s brand, logo and corporate image as well as access to operational know-how. The latter is usually documented in the network’s operations and procedures manual.

Assistance during the pre-opening phase

Depending on the nature of the business, the franchisor is expected to assist franchisees in the following ways:

  • Drafting of a business plan and help with obtaining finance.
  • Site selection advice and assistance with lease negotiations.
  • Specifications for the fitting-out of the unit.
  • Access to preferential sources of supply.
  • Initial training of the franchisee, plus possibly key staff, in all facets of operating the business successfully.
  • Advice regarding the composition and quantity of initial trading stock.
  • Help with the recruitment and training of staff.
  • Supply of a comprehensive system for the administration and control of the business, plus training in its use.

Extensive ongoing operational support

  • Access to a troubleshooting hotline.
  • Regular visits by competent franchisor personnel.
  • Access to local, regional and national meetings arranged by the franchisor and designed to drive the business forward.
  • Access to group purchasing schemes.
  • Spin-off from network-wide marketing drives and support with local marketing initiatives.
  • Market research and product development.
  • Development and testing of new products, systems and equipment.
  • Assistance with staff recruitment, motivation and control.
  • Guidance in terms of statutory obligations.

Franchisee motivation and control

  • Assistance with goal setting and periodic updating of the business plan.
  • Regular review of business performance, linked to confidential feedback on deviations from group norms – advice regarding possible improvements.
  • Periodic auditing of franchisee’s operation.
  • One-on-one counselling sessions.
  • Motivational meetings.
  • Franchisee awards.
  • Lifestyle enhancement issues.