100 Step Franchise Acquisition Program

100 Step Franchise Acquisition Program

Please be aware that the functions below are complex and will require the professional help of third parties. It is not advisable to go through the entire program on your own. It is going to be an extremely lonely experience.

Basics for Business:

1. Make sure that you have an understanding and experience of management functions
2. Identify your personal mission, vision and objectives
3. Identify your short and long-term strategies
4. Establish your personal and business values
5. Know your abilities and limitations

Homework:

6. Study this action plan
7. Read as much as you can on franchising
8. Make sure that you have the required funds to launch and operate the business
9. Identify members of your Franchise Advisory Council "Family members, Friends, Company Executives and/or Third Party Professionals"
10. Discuss your plans with your Franchise Advisory Council
11. Outline your company organizational structure for the new business
12. Develop your business profile including overview of your existing and future business structure, strengths and target location (seek the help of FranExcel™)

Selection:

13. Decide on the type of franchise concept such as a new concept brand early in its international expansion, a well established brand in a mature market, a franchisor that is capable of expansion and displacing existing competition, a franchisor that fulfills your criteria for initial investment
14. Hire the services of (FranExcel™) of franchise search and find program
15. Evaluate all the franchise opportunities in offer
16. Identify the franchise business category(s) of interest to you
17. Study the franchise proposal and any other material such as presentations, printed literature and franchisor website
18. Read franchisor news letter, credentials book and achievement book
19. Evaluate other franchisee satisfaction on their relationship with the franchisor - dispatch questionnaire to other franchisees
20. Collect and analyze results
21. Initiate Credit Check on the franchisor
22. Pay a visit o the franchisor HQ, company owned stores - develop your itinerary and meeting agenda
23. Study the franchisor organizational chart
24. Identify the elements of the franchisor support including training, marketing, launch support, information technology, chain supply, transfer of systems, designs, layouts, software and others
25. Draw an estimate of the cost of the above support elements and decide if the franchise fee as established by the franchisor is appropriate.
26. Identify the franchisor on-going support elements including on-going training, research & development, periodical meetings, periodical visits, mystery shopper program and motivational programs
27. Draw an estimate of the above support elements and add you profit margin and decide if the royalty fees are fair and justified
28. Check if there are any other fees or levies which can be added to the set of franchise fees
29. Verify if the franchisor has proprietary/ branded line of products and study the cost of each product and outline your pricing structure
30. Verify if you are going to source such products directly from the franchisor or through other suppliers
31. Develop the franchised unit "three – year" profit & loss statement.
32. Develop you own profit & loss statement as the franchisee/master franchisee
33. Develop your financials analysis into a business plan – seek the help of "FranExcel™"

Legal:

34. Study the local laws in relation to operating the business?
35. Identify the franchise owner company which will operate the business
36. Determine company HQ location
37. Activate company registration and finalize all legal procedures, CR, Municipality and others
38. Study the franchise contract
39. Study appendixes to the agreement such as product list, supply agreement, Intellectual Property Rights guide and standard rent agreement
40. Identify your obligations as the franchisee including unit opening plans
41. Study elements of Intellectual Property Rights
42. Investigate the registration of Intellectual Property Rights in your market
43. Study any other agreements such as employee contract, letter of intent, memorandum of understanding, non disclosure document and uniformed franchise offering circular
44. Hire the services of an experienced franchise lawyer to review the legal agreement and provide his professional comments
45. Raise Legal & commercial comments on the Agreement & Commence
46. Negotiating clauses of the agreement and reach mutual understanding
47. When required signs "letter of intent," which includes a non-refundable deposit, confidentiality – usually a process undertaken by most of franchisor companies to release confidential information
48. Sign the franchise agreement

Training & Transfer of Systems:

49. Study the operating manual contents
50. Read carefully all policies s& procedures with relation to the business
51. Study elements of the franchise concept corporate image and identify elements of strength
52. Study site/unit/store/location décor packages, ask for sample charts for all material used in the fitting out the location
53. Research the market for suppliers of such material
54. Study corporate identity manual
55. Read carefully parts that relate to opening & closing procedures, recruitment procedures, corporate identity, accounting system, point of sale, pricing structures, ordering procedures, receiving procedures, storing procedures, product display, sales & cash system, customer service, cleanliness, maintenance, security, the environment,  time management, financial dexterity and reporting system
56. Study unit organizational chart and recruitment procedures
57. Study site selection criteria and unit development progress plan
58. Study Furniture, Fixture & Equipment list & specification
59. Research the market for suppliers of Furniture, Fixture & Equipment
60. Study franchisor branded product supply & logistical system, suppliers’ list
61. Research the market for products agreed to be purchased from your local suppliers

Marketing:

62. Customize your store launch program
63. Customize your local store marketing plan
64. Customize your annual national/regional/international marketing plan
65. Customize your franchise marketing plan
66. Customize your advertising tools

Your Franchised Unit

67. Agree with the franchisor on mechanics and procedures of training, site selection, marketing, fitting, until "day no 1" of operation
68. Develop your franchised unit Business Plan
69. Develop cash flow forecast
70. Secure required capital according to your cash flow forecast
71.  Search for locations and complete site evaluation form for the proposed site
72. Consult with "FranExcel™" for a comprehensive site criteria
73. Obtain the Engineer/Contractor's approval for the location
74. "If necessary" obtain landlord approval to make modification to the location
75. Negotiate the rent agreement with the landlord
76. Obtain the necessary licenses for the location
77. Obtain written approval for the location from the franchisor
78. Sign the lease agreement with the landlord
79. Obtain the equipment criteria and specifications, obtain the approved supplier list for equipment
80. Order equipment, furniture, fixtures and fittings
81. Customize site plans, architectural designs, internal and external decorations and building material specification
82. Set a deadline for construction completion and getting the site development plan approved
83. Sign the agreement with the contractor specifying penalties floors, walls, and ceiling, marble, glass, and wood work, electrical wiring and connections, ventilation and air-conditioning, insulation and utilities work, phone lines, telephone lines, Point of Sale connections, computer system connection, lighting and sound system, fire extinguishers, security system,
84. Review manning plan in the store and criteria for selection & recruitment and review job allocation and working hours and shifts
85. Commence recruitment process including screening and interviewing,
86. Proceed to selection and appointing - consider the governmental requirement for staff recruitment
87. Identify the training needs for all staff in location, start the in classroom and on the job training
88. Order staff uniform and name tags
89. Order printed literature and stationary
90. Make sure that all utilities are functioning in a satisfactory manner, all the internal decorations are up, equipment have been tested, all of the necessary certificates and approvals have been received
91. Release petty cash for miscellaneous expenses
92. Customize accounting system with your accountant
93. Plan your new chart of accounting & profit centers
94. Customize accounting & cash handling formats
95. Customize communication & control systems
96. Obtain Insurance policies on assets and equipment, product inventory, main safe box and the cash registers
97. Identify opening day and seek franchisor's launch support
98. Execute store launch program
99. Launch the business
100. Commence monitoring & evaluation process

If you have encountered any difficulty in understanding or completing any of the step above, please call FranExcel™ on 009714 367 8290 or e-mail us at md@franexcel.com