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.