Franchising Strategies: The Entrepreneur’s Guide to Success

Description

A comprehensive and accessible companion to a proven business model, this book shows how to franchise an existing business, supported by case studies, data, and research reports on the franchise industry. For small to medium sized businesses, franchising can lead to successful and profitable growth, and plays an important role within the US economy. Utilizing a proprietary dataset with the most up-to-date statistics regarding a range of franchising trends, this analytical guide is based on management research frameworks that will lead to better understanding of a range of franchising strategies. Issues covered include: The franchising business model, including its history, economic impact, and regulations Critical factors that significantly influence franchising success, enabling a comprehensive feasibility analysis of franchising potential or existing business ideas Implementation components of franchising strategies, such as different franchise structures, regional development plans, and future trends With its clear focus and practical orientation, this book will be a valuable resource for entrepreneurs, as well as undergraduate and postgraduate students, interested in acquiring the knowledge, skills, and abilities to succeed in franchising. Cover Endorsements Half Title Title Page Copyright Page Dedication Contents Acknowledgments Chapter 1: Introduction to Franchising Definition of Franchising Major Theoretical Frameworks History of Franchising Franchising Regulations and Associations International Franchising Franchising Business Models Impact of Franchising in the United States Advantages and Disadvantages of Franchising for Franchisors Advantages and Disadvantages of Franchising for Franchisees Franchise Industry Statistics Automotive Commercial and Residential Services Quick-Service Restaurants Full-Service Restaurants Retail Food Lodging Real Estate Retail Products and Services Business Services Personal Services Summary Notes Chapter 2: Fundamentals of Franchising The Components of the Franchise Business Model Franchise Intellectual Property The Franchise Trade/Service The Franchise Operating System Franchise Training The Franchise Operations Manual Franchise Marketing Franchise Development Franchiser Support Vendor Purchasing Programs Competitive Intelligence The Franchise Territory Franchise Site Selection The Initial Franchise Fee and Continuing Payments Franchise Term Summary Notes Chapter 3: The Relevancy of Emerging Franchise Performance Emerging Franchise Performance and Category Differences Emerging Franchise Performance Data The Top Five Franchises in Five Franchise Categories Emerging Franchises System Growth Amount of Franchise Investment Summary Notes Chapter 4: Evaluating the Franchise Venture The Evaluation Process and Its Importance Initial Thought Experiment Confirming Company Objectives Five Key Aspects of the Evaluation Process Internal Feasibility Analysis - Resource Availability Financial Capital Management/Employee Competence Internal Feasibility Analysis - Franchisability of the Core Company Attributes External Feasibility Analysis - Industry Practices and Trends Franchisee Profitability, Cash Flow, and Return on Investment Final Check Summary Notes Chapter 5: Preparing for New Franchise Launch Securing Trademarks and Website Domain Names Incorporating the Franchise Corporation Choosing between Two Franchise Development Models Understanding Essential Franchise Documents The Franchise Operations Manual Sample Operations Manual Table of Contents The Franchise Disclosure Document Item 5: Franchising Model Item 5: Initial Franchise Fee Item 6: Royalties and Other Fees Item 7: Estimated Initial Investment Item 9: Franchisee's Obligations Item 11: Franchiser Obligations Item 12: Territory Item 19: Financial Performance Representation The Franchise Agreement The Franchise Business Plan Considering Franchise Advisors The Franchise Attorney The Franchise Consultant Summary Notes Chapter 6: Developing Franchisor Organizational Capabilities Three Examples of Franchisor Organizational Structure Top Management Team Chief Executive Officer Chief Financial Officer Vice President Franchise Development Franchise Coordinator Director of Franchise Operations Franchisor Outsourced Services Marketing Agency IT Support Independent Accounting Firm Summary Notes Chapter 7: Franchise System Development Target Franchise Territories Create the Franchisee Profile Recruiting Franchise Candidates Franchise Marketing Materials The Franchise Website Franchise Brokers Franchise Advertising Portals The Internet Franchise Trade Shows Print Advertising Processing and Qualifying Franchisee Leads The Franchise Application Qualifying the Franchise Candidate Engaging with the Franchise Candidate The Franchise Discovery Day Finalizing the Franchise Transaction International Franchising Summary Notes Chapter 8: Franchisor Support and Services The Importance of Franchisor Support Pre-opening Assistance Site Selection Assistance Franchisee Training Operational Services The Franchise Opening Franchise Marketing Implementing Marketing Programs Franchisee Advertising Funding Franchisor Pricing: Mandated versus Suggested Retail Prices Franchisor National Account Programs Government Contracts Franchisor Operations Support Franchise Site Visit The Franchisor Field Representative Key Performance Indicators Summary Notes Chapter 9: Franchise Relationship Management The Phases of a Franchisee Conflict Management between Franchisees and Franchisors The Source of Franchisee Franchisor Conflicts Tools for Managing Conflict in the Franchise Relationship Effective Franchise Communication Measuring Franchisee Performance Measure Franchisee Satisfaction Levels Additional FRM Tools Franchisee Owners Associations and Franchise Advisory Councils Avoiding and Managing Franchise Litigation Preventing Disputes from Escalating into Franchise Litigation Alternative Dispute Resolution Arbitration Mediation The Franchise Mediation Program Summary Notes Chapter 10: Franchise Trends The Franchise Rule The Great Recession The Role of Technology in Franchise System Development and Operations Franchise Development and Technology Franchise Operations and Technology Franchisee Performance Evaluation and Support in the Future The Future Role of PE in Franchising The Pandemic of 2020-2021 Summary Notes Index