Developing the network expansion plan for your franchise
by
Norton Rose
Site selection criteria will need to be developed to ensure that the correct locations are chosen. Similarly, franchisee selection criteria will need to be developed, and strategies devised to secure, vet, train and induct franchisees. Franchising Code of Conduct compliance processes will need to be put in place, with the inherent delays associated with cooling off, disclosure and legal advice built into the timeframes.
From a financial perspective, planning needs to consider resourcing issues. Often franchisors will need to invest in staff and assets in advance of the appointment of franchisees. Overly optimistic expectations of franchise network roll out, or expansion on too many fronts simultaneously, can add unnecessary costs. The expansion plan should include conservative estimates of timeframes applicable to each element of the roll out, noting priority territories, desired locations and the resources that will be required to implement each aspect of the plan.
The more attention given to these issues in the planning phase, the better prepared a franchisor will be for the challenges of implementation.
See the running and franchise and buying a franchise pages for additional information.
This article was created by Deacons and appears courtesy of Austrade . 10.07.2007
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