The success of a franchise project largely depends on the conditions that define it.
Poor design of the franchise project will lead to numerous problems during expansion, and likely bring about failure.
It is wise to have the guidance of a franchise consulting firm in order to achieve the optimum design of a franchise and its document base (contracts, operation manuals, etc.) as the foundations of successful and sustainable expansion over time. This is the system through which many companies begin their growth, but with few who manage to maintain their networks in the midrange and long term on their own.
Thus, mistakes made during these initial stages will give rise to future problems that will endanger the growth and consolidation of the franchise network. The experience of a professional franchise consultant can prevent such problems.
The franchise consultancy provides knowledge and experience
The franchise consulting firm provides extensive knowledge and experience through which the future franchisor becomes better equipped to best select the defining options of the franchise from the numerous possibilities presented. As a result, the consultants will examine and confirm that the business can indeed be franchised, while also establishing the conditions and parameters thereof.
Before developing expansion based on selective criteria, a solid, successful franchise calls for a series of conditions from the establishment, covering the different aspects of the franchise. These conditions need to be determined be a franchise consulting professional.
In this regard, on an economic level, the project must be well balanced for the franchisor and franchisee to obtain profitability that is in line with their endeavor.
The legal and relational aspects between the franchise head office and the franchised units must be well defined within the project, specifying, amongst other aspects, how the training, supervision, and support of the franchisees is to be executed.
With regard to structural conditions, the franchise consultancy must define the necessary structure at the beginning of the expansion and the time period for it to grow coherently and harmoniously with the franchise network.
In short, the mission of a franchise consultancy is an important one:
To facilitate the development of the franchise project in the most favorable conditions to guarantee its future viability.