Franchise System Development
Franchising is the replication of an already successful brand’s trademark, know-how & processes in exchange for a fee. As a method of growth, it can be applied to almost any sector whether it is food & beverage, education or services.
A franchise system that is based on a win-win strategy for both franchisor and franchisee can greatly accelerate a brand’s growth and footprint in a relatively short period of time.
Sustainable franchises invest time and resources in developing the franchise system. This starts from the foundation of franchise strategy, intellectual property exploitation, franchise valuation, documentation of operations, franchise disclosure documents, franchise agreements and franchise marketing.
At Astreem, our experienced consultants are trained to work with our franchisors to extract value from the intellectual property that exists within their businesses and transform that value into sustainable revenue channels over the long term.
Franchise Valuation Strategy Development
A well-grounded franchise system serves as the cornerstone of all future growth and must reflect your organisation’s goals and objectives while presenting relevant strategies and revenue streams. Issues such as brand positioning, customer engagement, supply chain, resource allocation, risk analysis, adaptability and timely growth need to be considered at this foundational stage of strategy development. How your franchise strategy addresses these considerations will directly affect the business’ potential for growth through franchising.
Franchise financials that reflect the franchise system’s potential profitability both for the franchisor and franchisee should be well evaluated before embarking on the franchisee recruitment process. Understanding what the IP developed and protected within your business is important as it determines the overall value of your business’ potential. It is important to understand how that reflects in your financial projections and what is an equitable franchise fee that would work for both franchisor and franchisee
Part of the franchisee recruitment process is to know what and how much information should be shared with potential franchisees before they make a commitment. A well-designed franchise offering and other associated presentation materials are critical in the brand and investment opportunity introduction stage to not only protect the franchisor’s interests but also to assist the franchisor in securing a successful franchise signing.
These refer to the franchise terms associated with the franchise. The franchise fees, franchise term, royalties, investment quantum and store fees are usually listed on this sheet and then further elaborated in a document that precedes the actual franchise agreement, known as the Franchise Agreement Highlights (FAH).
Standard Operation Manuals
The Operation Manuals are the backbone of the operational success of a franchise. By effectively documenting all processes and workflows and by covering topics such as management and operational aspects of the business, the manuals will minimise deviation from the standard operating process that makes the business successful. Often the Standard Operations Protocols (SOPs) include both Outlet Operations documentation and Franchise Management operations.
On top of having well-documented processes, franchisors may also wish to invest time and resources into developing specific training to ensure that some critical functions such as customer engagement, replicability of teaching methodologies and execution of specific protocol are executed consistently across business units. Often a training program will include training presentations, Train the Trainer guides, Learner’s Guides, teaching materials and evaluations.
A license is a legal contract authorizing one business to use the confidential business practices of another business. Under a licensing model, a company sells licenses to other (typically smaller) companies to use intellectual property (IP), brand, design or business programs. These licenses are usually non-exclusive, which means they can be sold to multiple competing companies serving the same market. In this arrangement, the licensing company may exercise control over how its IP is used but does not control the business operations of the licensee. Licensing is a vehicle for companies who wish to enter the market quickly, exploit other sectors and markets.
Our licensing program will provide licensors with a growth strategy and process for transferring and protecting the company’s technical know-how.
Our Licensing Services include:
- Commercial terms & policies
- License fee pricing
- License-related manuals
The Intellectual Property (IP) that resides within your company or organization is the cornerstone of the ultimate value in your business. This includes your brand mark, know-how, technical knowledge about products and production and business processes.
A good starting point is for companies to embark on an initial audit of their IP processes and systems through SCOPE IP– a program that offers:
This is a diagnostic tool licensed from the Intellectual Property Office of Singapore and is designed to provide a health check on a company’s intellectual property management.
Our Legal Services also include:
- Searching, clearance (including risk management and regulatory compliance), protection, management and maintenance of IP rights including trademarks, service marks, patents and designs
- Protection of copyright
- Advising on commercial aspects of Franchise Agreements and associated legal documents
One of the key success factors for franchising is understanding the financial position of the company. To effectively manage the business and franchise network, real-time data, and financial advisory is a necessity.
However, due to the high costs of engaging highly experienced professionals who are in tune with the high compliance standards of Singapore, the accessibility to the fundamental financial management needs to become prohibitive.
By optimising operational process and deploying document automation technology, business owners now have the ability to consistently deliver accounting service at a greater speed but at a fraction of the costs.
Our Financial Management Services include:
- Payroll Management Services
- Taxation Consultation
Scaling Proven Social Impact Solutions
Having grown countless SMEs in South East Asia through franchising, Astreem is now seeking to champion Social Enterprises in our region. We seek to work with enterprises with promising social impact solutions that can be scaled through Social Franchising – we seek ideas that have positive impact on real community social needs. Using our expertise in franchise acceleration, we partner with social enterprises to achieve the change they dream of.
More and more individuals are standing up to make a positive impact in our society. One small voice can become a roar when many come together. At Astreem, we believe that franchising can become a vehicle that social enterprises can use to create exponential social impact through a network of like-minded franchisees. Using franchise as a platform can bring the exponential impact that these social organisations aspire to achieve and gather greater scale and momentum to achieve significant transformational change.
Business Process Management
The key to building a sustainable franchise is to be able to leverage technology to manage the business process more efficiently and monitor the performance of the franchise network whilst using the data gleaned to establish benchmarks. Astreem Business Process consultants have perfected the art of wrapping technology around your business.
Our consultants will:
- Analyse your business processes, identify key drivers and leverage automated management systems to gear your business for growth using our proprietary framework.
- Recommend the best way to connect your people, process and technology to manage and grow your business
- Allow you to manage your business processes using automated management systems as your fiercest competitors would in the most cost-effective and time-efficient way.