the transfer of intellectual property rights (ipr ) including but not limited to trademarks and...
TRANSCRIPT
What is Franchising?
The transfer of Intellectual Property Rights (IPR ) including but not limited to
Trademarks and
Technical know-how
Provides added value to the business operation between two parties
Franchisee and
Franchisor
As market entry barriers break down globally …
Love Marks
(Brand)+ Technical
Know-how
+ Economies of Scale
=
The Future in Franchising
A proven business modelOver 15,000 franchises world
wideOver 80% of the retail offer in
Major malls are Franchised (GCC) Over 75% of Hotels (Worldwide)
are franchise operations
GLOBAL OVERVIEW
What Type ofBusiness Sectors?
Health and Beauty Leisure and Travel Motoring Logistics Real Estate Food and Beverage Home Improvements TV and Media
services Management
Services Fashion and
Lifestyle …and more
F R A N C H I S O ROPERATIONAL BENEFITS TO THE FRANCHISOR
FINANCIAL BENEFITS TO THE FRANCHISOR
Expand without the risk of high capital expenditure and debt accrual
Capital injections from franchise fees
Cash flow benefits from management service fees–MSF
Less risk of Management Fraud
Lower Human Resource liabilities
Marketing PowerBrand managers achieve 'first-in-mind' levels of recognition = more bang for the buck in MARCOMS activity
Market ShareExtended geographical penetration = customers accessibility = brand loyalty
Group Purchasing Strength Increased volumes + centralized buying = competitive pricing structures
Fast, Effective, Geographical Expansion
Use of the local expertise = better results in a shorter time-frame
Rationalized Central Management
Operating and managing = less demands on core organisation infrastructure
F R A N C H I S E E SFINANCIAL BENEFITS TO FRANCHISEES
OPERATIONAL BENEFITS TO FRANCHISEES Lower development
costs Reduced capital
expenditure Quicker ‘payback’
period Centralised
development costs Power purchasing Improved NP
A tried and tested business formula
A brand identity A shortened
learning curve Education and
know–how Network support
Critical Assets - What to look for?
Business management reputation Financial feasibility Differentiation Transfer of know-how Flexibility Market trends and conditions Proven business system Capital resource Competent and experienced
executive team
The Franchise Development Programme
Develop a “System of Critical Assets” required to support and sustain a successful franchise
The “Critical Assets System” covers over 150 aspects of your business
The result will be a fully-pledged franchise operating system
Extracting the DNA• The mission, vision and the
core values • The business system
definition• The intellectual property
protections• The critical financial
characteristics and financial models
• The market opportunities and constraints
• The franchisor investments andreturns
• The creative business solutions forsustainable success
Announcing to and Securing the Right Franchisees• The franchise marketing
plan • The screening and selection
criteria • The franchise information
memorandum (FIM)• The franchise agreement
(legal contract) • The local business plan • The site search and
selection process• The design and installation
schedule• The local business launch
campaign model
Putting the Theory into Working Practice • The policies and
procedures• The operating manuals• The pre-launch training
requirements• On-going training and
motivation techniques• The franchise
administration system • Business development,
feedback, audits, troubleshooting
DeliverablesDedicated Franchise Mentors – an extension of your team providing : • Specialist support • The business plan • The marketing
tools and strategies
• The legal framework
• The operating manuals
• The management control system