A to Z Franchise Expansion Models

Description

What will we do for you?

If you are interested in developing a best practice model then read on. If you want to take short-cuts and risk your business and settle for second-best,  then we may not be the right advisers for you.

 Diagnostic- What is going on!

• Pre-franchise evaluation. This is where we sit down with you over a coffee and nut out some basics. We know you think franchising is right for your business, but let’s test that anyway. It’s worth the effort, we want to get this right the first time remember!
• Franchise education. We don’t pretend to know your business as well as you do, but we know  franchising inside and out, we know the researched secrets on how to grow a low-cost national footprint. Allow us to whet your appetite.
• Growth objectives. So, you want to grow your business Australia-wide, maybe even in targeted foreign markets. This type of ambition is not for the faint-hearted. We want to hear more about you and the way you think about business, risk and life in general.
• Site visits. There’s nothing like experiencing the real thing… when, where and how business is done.  We want to learn everything about your business so we can best advise you.
• Process audit. Growing a network of like businesses with the least amount of capital is all about process. You know that already and you’ve invested heavily to get your business where it is today, and processes have progressively evolved to support your growth. Now we need to test whether you have what it takes to grow even bigger.
• IP assets audit. Did you know that 85% of the value of your business will be generated from growing intellectual property assets… yep, things like patents, trademarks, manuals, database, and processes? If you want to create serious value and generate real wealth, we need to understand your intellectual property assets.
• Gap analysis. We don’t expect you to have every process and have created every intellectual property asset to grow this business… no one really does. So, let’s see where the gaps are so that we can start planning towards a solution.
• R&D Tax incentive. Our government is offering tax and cash incentive to encourage innovation, but they don’t make it easy to qualify. It’s worth a look as it can mean a cash refund of up to 43.50% of every dollar you spend on eligible core and supporting activity.

Strategic- What needs to be done!

• Design growth model. Time to roll-up our sleeves, crank up the engine and create a growth model that you are unlikely to get anywhere else. Why do we say that? Well, our research tells us so and we have the track record to prove it.
• Franchisee financial modelling. The problem with many existing franchise models is that they are outdated and unprofitable for franchisees. The economics of franchising have substantially changed and so must the models… common practice is no longer best practice.
• Franchisor financial modelling. Franchisor, franchisee, suppliers, staff and customers must win for the business to sustain a healthy growth. Relax, we have researched this in the last seven years, and we have the answer.
• Value sharing calibration. This is where we shine. We have developed the world’s only sustainable growth model… the EQ-TVM-6 that fully shares and calibrates value between franchisor and franchisee to ensure the success of the system over time. Our value sharing approach eliminates the problems experienced by so many emerging and mature franchise systems.
• Geo-demographic analysis. Once upon a time cash was king, nowadays it’s data. With rich data and intelligent statistical modelling, we can substantially improve our planning and segment our market with more precision. This ultimately means a superior shot at enduring success.
• Site selection modelling. So, you know who your customers are, where they live and the type of products that they like. Now, all we need to do is find the best site for them to access your services. Our sophisticated site selection models can do this with great precision.

Tactical- How it will be done!

• Operational structure. This is where we get the engine room ready and ensure that we have the capacity to support a growing network. From corporate image to technology to alliances, it is critical that we nail them all.
• Relational structure. Okay, this is where a number of systems fail. Relationship models are not easy to design and implement, however there are some fundamental rules to observe to ensure your system is primed to communicate, acculturate, cooperate, and mediate and not dictate.
• Financial structure. Keeping a tight control on the profitability and cash-flow of franchisor and franchisee is paramount. Apart from assisting in managing respective obligations under the franchise agreement, it makes good business sense to be organised so that regular and timely financial information can be produced.
• Legal structure. Franchising is a powerful and popular method of getting scale and increasing distribution. Unfortunately, many operators have taken shortcuts, resulting in failures and litigation, thereby gaining the attention of regulators. If you are serious in being around for a long time, you may have to invest more, take a little bit longer to roll-out and implement good governance.
• Retro franchising. Converting existing branches in franchises is tricky. There are a number of relational, operational, financial and legal hurdles to overcome. Getting the conversion strategy right will underpin the success of attracting franchisees in new sites.
• Franchise offering. The key to early and seamless franchisee engagement is to make it easy for them to  evaluate the franchise offer and get into business. To do this, every effort must be made to provide them with practical business tools.
• Franchisee induction. There is much to learn and do to get it right. An informative induction program about the business, franchising and the law empowers franchisees to be their best and benefit from the system.
• Testing & Prototyping. Getting it right the first time is not easy but essential. Careful planning, design and testing ensure that you give the business the best chance of succeeding in its new form.
• Controlled rollout. The world has changed and with it so has customer engagement. As we rollout, we need to create buzz and showcase the brand and its value proposition. Offline and online campaigns are essential strategies to grow responsibly and profitably.
• Supervising & Monitoring. Franchisees join a franchise system to access business support. They want to own their own business but not be on their own. Franchisors have a responsibility to implement information systems that gather real-time data for analysis and business improvement.
• Process recalibration. No system perfect. To succeed in franchising requires a commitment to continuous improvement in process, systems and service delivery. Frequent and systematic stress testing of the mechanics of doing business as franchisor and franchisee is imperative for a healthy enterprise.
• National rollout. Getting ready for a national footprint requires careful planning and resources. There are many options that must be forensically evaluated and getting it not one of them.