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CREATE A FRANCHISE

ADVANTAGES

Franchising opens up enormous opportunities for companies and offers many advantages, including:

  • Network development speed – thanks to franchisees, it is possible to expand your network faster, overtaking competitors. The speed depends on the franchisor’s ability to attract new franchisees, train them, and support them.
  • International expansion – this becomes significantly easier and faster, as well as involving much less risk, because franchisees usually have good knowledge and contacts in the specific market.
  • Brand recognition and value actually grow with the opening of new units. The more locations, the greater the brand recognition and brand value.
  • Financial capital mostly comes from the franchisee, so the franchisor has lower investment costs for setting up each franchise unit.
  • Return on investment (ROI) – with lower investment, the return on investment (ROI) is higher.
  • Stable income stream – With a stable income stream, you can plan your cash flow for marketing, product/service development (R&D), etc.
  • Motivated management – the franchisee usually manages the franchise unit themselves and is responsible for its operational efficiency. The franchisee treats the franchise unit as their own property, which promotes higher sales and profit margins.
  • More efficient organizational structure – the organization can develop successfully without a large number of employees. Typically, managing a franchise network requires fewer employees than managing a company’s own network of structural units.
  • Long-term relationships – you can invest more confidently in training the franchisee and their team, as the likelihood of the franchisee leaving the franchise network is relatively low, given the long-term franchise agreement signed between the two parties.
  • Reduced involvement in day-to-day operations – the franchisor primarily manages relations with franchisees, while franchisees manage day-to-day operations.
  • Better purchasing conditions – collective purchasing results in better purchasing conditions from suppliers.
  • Franchise unit performance indicators are usually better than those of the company’s structural units, as the franchisee is motivated to achieve the best performance indicators for the franchise unit.
  • Lower risk – with lower investment, the risk is lower. Franchisees are responsible for staffing, renting premises, etc.
  • Quality control – franchisees usually maintain their units in better shape than salaried employees. Quality is a very important factor for franchisees.
  • Advertising – At the request of the franchisor, franchisees will contribute to a common advertising fund, which will be used to advertise the brand and promote the sale of products/services.

BEFORE CREATING A FRANCHISE

Do a little homework:

  • Collect information
    • Internet
    • Franchise seminars/webinars
    • Franchise books
    • Franchise exhibitions
    • and/or sign up for a free consultation
  • Assess your business’s readiness for franchising
    • Complete the Franchise Test
    • Discuss the results of the franchise test with a franchise expert
    • Agree on the next steps with a franchise expert

FRANCHISE CREATION STAGES

  1. FRANCHISE STRATEGY STAGE
    • Development of Franchise Financial Models
    • Development of Franchise Calculator
    • Development of Franchise Strategy Plan
  2. LEGAL STAGES OF FRANCHISE DEVELOPMENT
    • Franchise Intellectual Property Protection
    • Trademark Registration
    • Franchise Agreement Development
  3. FRANCHISE OPERATIONAL STAGE
    • Franchise Manual Development
    • Digital Checklists System Implementation
  4. FRANCHISE MARKETING STAGE
    • Development of franchise presentations
    • Development of franchise websites/landing pages
    • Development of franchise marketing plans
  5. FRANCHISE DESIGN STAGE
    • Brand Book Development
    • Space Design Book Development
  6. FRANCHISE SALES STAGE
    • Launch of franchise advertising campaigns (Facebook Ads, Instagram Ads, Google Ads)
    • Implementation of CRM system
    • Development of franchise questionnaire

How to apply for franchise development?

To receive a detailed franchise development offer (with terms and prices), please contact us by calling +371 29 176 156 or writing to info@franchising.lv