by Eric Parker and Sasha-Lee de Bod

As the leading franchise consultancy in South Africa, we are able to hold your hand throughout your journey to franchising your business. Here is how we can assist you:

Is Franchising the Right Path to Take for your Business?

How we can assist you: Franchising Plus assists you to undertake a feasibility assessment to make sure franchising is the right option for you and your business. 
Our approach to this assessment is to gather, review and assess the pertinent information regarding your businesses to understand whether the critical success factors are met to determine the feasibility of franchising the business. 
If we decide to proceed, we will show you what funds you will need to make your business “Franchise Ready”. We will work with you to ensure your current business model  is in optimal condition for further expansion through an owner operator mechanism. You only have a clean piece of paper once and don’t want to multiply mistakes.

If Franchising is the Right Path to Take

How we can assist you: Franchising Plus will assist in planning a controlled growth strategy and business expansion plan with an owner operator business mechanism.

Big is not always beautiful! We would rather have 10 successful, happy franchisees than 20 unsuccessful, unhappy franchisees. We will want you to uphold this.

We will work closely with you to formulate the ideal growth and expansion strategy that includes but is not limited to the following:

  • Guidance with the finalisation of your business model and/or franchise concept
  • Identifying the ideal owner operator mechanism
  • Determining the value proposition
  • Determining the ideal fee structures
  • Identifying potential gaps, needs and requirements not only for your business model but to ensure franchise readiness
  • Proposing the next areas for expansion
  • Formulating a financial model for your business and for potential franchisees to determine the return on investment and viability of the plan for all parties involved

Franchising the Right Way

How we can assist you: We assist you in creating a win: win solution. Franchising Plus believes in and strives towards ethical and fair franchise practices and we will instil all these practices throughout our sessions with you and your team.
  • Be honest and transparent in all your dealings with your franchisees.
  • Franchising is all about a relationship built on honesty and trust.
  • Don’t be greedy.
  • Franchising is successful when the scale is in balance.
  • Don’t accept rebates, confidential discounts or kick-backs unless you are prepared to declare them and share them with your franchisees.
  • Make your suppliers your allies. Your suppliers play an especially important role in the franchise role out.

Protecting Your Brand

How we can assist you: We can assist you to compile on online Operations and Procedures Manual and review your current trademark application and/or registration status with the aim to ensure that your brand is sufficiently covered in all the relevant trademark categories

Protect your brand at all costs! You licence/give a franchisee the rights to use your brand and intellectual property and you must ensure that they uphold all your standards detailed in the “Operations and Procedures Manual”.

Franchisee Selection and Recruitment

The franchisee selection and recruitment process is one of the most important factors in developing a sustainable franchise network. 

Once your franchise has gone through the stages of development you would then need to successfully find and recruit franchisees.  This includes advertising for franchisees on a targeted platform and once they show interest to effectively implement a recruitment process and/or strategy.

How we can assist you: Franchising Plus a website called  www.whichfranchise.co.za  that not only educates potential franchisees prior to enquiring and investing in a franchise but offers franchisors a portal to advertise their franchise opportunity.

Once you receive enquiries and interest in your franchise there will always be the distinct line between who fits the profile of an ideal franchisee for your business model. We can’t stress enough the importance of franchisee selection. This is a long-term relationship, and we compare it to selecting a husband or wife. Make sure the franchisee fits into your company outline and culture.

How we can assist you: We have tools to assist you in the selection and interview process, which includes a recruitment process with supporting documents and communication templates, credit checks, psychometric tests including the E-test .

Your Role to your Franchisees

How we can assist you: We provide benchmarking tools and extensive training for franchisees and franchisors.  We can mentor and guide you on how to manage and support franchisees effectively to ensure that all operations are successful, and that the franchisor-franchisee relationship is nurtured and grown accordingly.

Consider and Implement the Following:

  • Support your franchisees. Franchisees rely on your support, experience and know-how.
  • You will become a mentor to your franchisees. Act as a mentor, not a policeman to your franchisees. The days of the policeman approach are over.
  • Use benchmarking as a tool to keep your franchisees maximising their profits. The franchisor has access to all the franchisee’s financials, so benchmarking becomes an ideal franchisee management tool.
  • Have clear and regular two-way communication because your franchisees deal directly with the customers.
  • Unprofitable franchisees are unhappy franchisees. Period! Assigning The Right People To The Right Positions Within Your Franchise
  • Franchisees require ongoing training:. Implement a training method/approach called: ‘QUEST which stands for quality, evaluation and in-store Training.
  • Practise the carrot and stick approach. Praise your performing franchisees but  assist non-performing franchisees. Remember everyone loves recognition and praise.

Marketing

The importance of marketing! Fortunately, according to the Consumer Protection Act, all  the marketing funds received from franchisees are allocated to marketing and must be spent on marketing and nothing else. This enables the franchisor to develop a powerful brand.

How we can assist you: We are able to assist you to develop a meaningful communications strategy to guide and control the marketing. We will be able to inform you on the Consumer Protection Act requirements regarding the funds and how they should be utilised and administrated

Training

Franchisors need to develop a training programme to ensure that franchisees are equipped to run the business successfully. Initial training inducts franchisees into the business and trains them on how to operate the business according to the franchisor’s guidelines.  Training should also include basic business skills and financial management

Franchisees require continuous and ongoing training to ensure that standards are maintained, and the franchisees are familiar with the latest operational procedures and processes available. It is important to ensure all staff conform to the Operations and Procedures Manual and are motivated. We can’t stress the importance of an ongoing professional trainer.

How we can assist you: We can assist you compile a training manual as well as a training division that is well experienced in the training at both franchisors and franchisee levels. We also have highly skilled trainers to train you and your franchisees. 

Compliant Franchise Documentation and Legal Agreements 

Like any other business agreement, ‘awarding’ a franchise means signing a contract to legally underwrite the rights and obligations of both franchisee and franchisor. This contract in the franchising world is called a Franchise Agreement

A disclosure document is a comprehensive, transparent and reliable information document that allows the potential franchisee to make an informed decision about the franchise opportunity

How we can assist you: We work with experts in the industry to assist you with developing franchise agreements and trademark registration. We can assist you in compiling a detailed brief for the franchise attorney pertaining to the particulars of your business situation and ideal franchise model.  We also assist in compiling a franchise disclosure document (A legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process) that is compliant to the Consumer Protection Act and the Franchise Association of South Africa’s guidelines.

Crisis Management

Prepare for rainy days – Covid has taught us to have a ‘disaster fund’ available to be used in exceedingly difficult times. Be decisive, act swiftly. A big advantage is that this is not corporate, and the franchisor can make immediate decisions for the benefit of the brand and the company.

How we can assist you: In our experience as franchise consultants, we have learnt many lessons from the SMME and franchise industry across various sectors that can assist you to not only grow your business but to assist you in difficult and unpredicted scenarios imposed on your business.

Already an Established Franchisor?

The overall success of the franchise system is conditional to the contribution and efforts of both the franchisor and franchisee. Established franchisors with a network of franchisees need to continuously measure franchisee satisfaction

How we can assist you: We can assist franchisors to customise each franchisee focus group/workshop and satisfaction survey to meet the needs of the franchisor to determine the current franchisee relationship climate within the network.  

Franchisees have their ears to the ground and are very connected with customers and in their areas.  It is very important for a franchisee to know that they are being listened to by their franchisor  and their questions and concerns are being heard.  Franchisors need to welcome input and suggestions from franchisees as the franchisees will see this as a willingness to listen and to support them.  Franchisees are only human and may relate and confide more in their peers (franchisees) with certain aspects of the franchise.  Therefore, it is important to have a franchisee council where the franchisees nominate a representative that will have the responsibility to communicate with the franchisor

How we can assist you: We can assist you with developing and implementing a franchisee support or representative council governed by strict bylaws to indicate the scope and functions.  We can assist with the franchisee nominations and facilitating of the first council to ensure that the ultimate goals are achieved.

Are you a SMME in Need of Mentorship?

How we can assist you: We help our clients to achieve success through hands-on support and skills transfer. We believe in the ability of entrepreneurship and franchising to achieve true economic empowerment through small business creation.

Start Your Journey

We would welcome the opportunity to discuss your ‘Franchise Journey’ with you.

Read more on: How to select a franchise consultancy