Franchise Strategy Development

The importance of Starting your franchise right cannot be overstated. Starting a franchise system is a collaborative, symbiotic process. Business owners, Franchise consultants and legal counsel each possess special knowledge, unique skills and expertise. Nothing is more rewarding than seeing a franchise system blossom from seed to when it becomes a scalable and rapidly growing brand. When insufficient importance is placed on this strategy development phase, franchisors may miss out on understanding their true costs of franchising, the value of their IP, the resources required to scale up, and the importance of developing multiple revenue streams. When agreements are made, franchisors typically need to wait till the first term of the franchise expires or invest heavily to unwind these already signed agreements.

The A360 Franchise development strategy ensures that the entire IP value stream of the Business to be franchised is assessed and analysed. The A360 Franchise development strategy focuses on identifying exploitable IP to Ownership of IP. Protecting and Exploitation of IP. Based on the various revenue streams, a scalable franchise financial model is developed from the Single unit franchisee to the Area or Master franchisee and the franchisor perspective. The important aspects of IP protection are also discussed, and strategies for maximising the IP of the brand are developed.

Upon in-depth analysis, a local, regional, or international franchise strategy is developed. Where a local franchise system is developed, the focus is on systematic, efficient, and scalable growth. Additionally, the strategy development will ensure that franchisors can offer their franchisees a clear Franchise Concept presentation, the important Franchise Agreement Highlights (also known as Commercial Documents), and the accompanying Franchise Letters of Intent.

When a franchisor is engaging a franchisee from a different market, it is essential to scale the growth one level up to cover the specifics of the territory in question. At this stage, the Franchise engagement Go to Market strategy would involve a combination of the franchisors’ foundational single market strategy and the target market’s local macroeconomic conditions, as well as the brand positioning of competing brands in the same market. In addition, in-market research is always recommended when entering new markets so that the franchisor is better placed to assist the Area of Master franchisee in setting up the franchise, thereby maximising both the franchisor and franchisee’s potential for success.

All the initial work invested in developing a franchise strategy ensures the franchise network is well positioned to scale. Once we have developed this franchise growth blueprint, the next step is to provide all the necessary franchise recruitment documents created and documented. The records required at this stage are the Franchise Concept presentation, The franchise Terms, the franchise agreement highlights, and the Letter of intent to help both parties seal the franchise deal. The specific terms for each Franchise agreement highlight may vary from market to market, but by and large, the words are built based on the same sound franchise strategy foundation.

Before drafting the franchise agreement, the Franchise Agreement Highlights and Letter of Intent are the most critical documentation needed to help get the franchise negotiations closer to the agreement signing.

One important note is that the franchise strategy may change from time to time to suit the external conditions of the market, their performance, and the franchisee’s performance.

It is also important to know that the Franchise development strategy is the first step toward developing a strong and sustainable franchise system. A franchise strategy, once developed, cannot be treated as a static product designed to remain the same over time. Like every business model, the franchisor needs to review and make plans to grow the franchise business, improve franchise operations and resources, refresh its franchise support systems, and update the franchisee engagement program to ensure the continuous evolution of the franchise system.

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