How Much will it Cost ?
The franchise development costs vary from business to business, depending on industry, size of business, readiness for franchising, target markets and other factors.
We’re essentially specialised consultant-advisors, but we can also provide hands-on support if necessary. We can ‘advise’ and we can ‘do’ – whatever you need until you are self-sufficient. In certain cases we’re also prepared to consider investing our time and expertise in exchange for a stake-holding in your franchisor company, but that’s some way down the line at this point.
As consultants we charge for our time on a conventional day-rate basis. This would be based on a consultancy proposal prepared before we start work which would set out an agreed program of work, objectives and outcomes, time frames and costs.
In order to limit your financial exposure and give logical review points to a franchise project, we would carry out our work in stages. The fine detail of each stage cannot be established until we have discussed this in more detail at an initial meeting and obtained a full brief.
Companies should consider the following costs:
Initial franchise planning, development and viability testing
Market research, franchise feasibility study, strategic business planning, intelectual property protection, franchise marketing plan, franchisee recruitment system, etc.
Franchise package development
The package provides franchisees with all the systems, procedures and other support needed to operate successfully: comprehensive operations manuals, franchise legal documentation, franchisee training programs, marketing and sales tools, etc.
The franchisor recruits a small number of franchisees to test the assumptions made in the planning and development stage regarding franchise territory criteria, initial training and support programs, sales and marketing techniques, etc. Franchisor monitors franchisees’ performance against their business plan. The costs include: production of brochures, advertising, franchise exhibitions, time spent on selection interviews, discovery days and business trips, testing systems and procedures, franchisee support.
There are certain risks involved at each stage of franchising, therefore, developing a successful franchise requires careful planning, continuous monitoring and advice from professionals.