A Master Franchisee can also be known as a sub franchisor or Master franchisor. Whichever term you choose to adopt, be consistent with the usage in your organisation to avoid confusion.

Master Franchising allows people or corporations to purchase the rights to sub-franchise within a certain territory. This allows the Master franchisee the opportunity to grow a viable business in a fairly short timeframe.

 The Master franchisee should enter into this role with both sales and management experience, since he or she will not only operate a unit, but will also be responsible for the smooth operation of several other locations as well. Additionally, a Master franchisee holds the responsibility of obtaining and educating other franchisees. He or she needs to be available for continuous support for the other franchisees.

Here’s how it works: Continue reading →

“Has anyone ever seen a franchisor that has sold franchises without an open, operating, and successful company owned location?”

This was a question posed on Linked in by Kelcey Lehrich a US franchising consultant.

This question turned into a discussion that was contributed to by many players in the franchising industry.

In essence, there were two camps. The one camp that maintained that it is not necessary to operate a business prior to franchising and who stated:

“Franchising is its own industry. A Franchisor can achieve the same results with a franchisee who purchases the first franchise and uses it as a “showcase” facility. Out of the 76 industries that franchisors are presently franchising more and more are NOT opening company operations. Most franchisors that do have company operations will sell them after starting to franchise.”

 The reply to this was;       Continue reading →

Franchising Fears

So you’ve undertaken a franchise feasibility study, and franchising seems to be a workable option.

The franchising consultant has helped you assess the viability of franchising and the numbers and you’ve ticked the boxes;

•  The business has long term viability
•  There is sufficient profit within the business to create a Win-Win   situation for Franchisor and Franchisee alike.
•  The business has been tested and has been running efficiently and profitablity
•  The system can be taught and replicated
•  All the numbers stack up ensuring long term profitability for the franchisee
•  All intellectual property matters have been acknowledged and are in hand.

So now, there’s a decision to be made. To franchise or not to franchise?

It is common for prospective Franchisors to get cold feet at this stage……and that’s good!

Franchising should never be undertaken lightly.

No responsible franchising professional should ever persuade a business to franchise.

Franchising should be a decision based on………        Continue reading →

Ever heard a complaint about being charged too little for a product or service?

No it doesn’t happen often does it?

But it occurred to me whilst flicking through the pages of a business magazine that some Franchisors do appear to be charging too little.

I came across a Franchise organisation with around 50 franchises and “many in the pipeline” so the reader was led to believe.

The ongoing monthly fees were minimal and there was no marketing fee.

So I began to wonder……… Continue reading →

Franchisors must remember that the franchise operations manual forms part of the franchise agreement.

The operations manual is therefore a vital business document that needs to be accurate and consistently updated.

The Operations Manual should be a Franchisor’s best friend.

A breach of the operations manual constitutes a breach of the franchise agreement.

Tips for a great Operations manual   Continue reading →

“The Ostrich method” does not work well in business generally and particularly in franchising.

Burying your head in the sand and hoping your problems will go away will NOT WORK.

Being in denial of re-occurring issues in your franchise will only lead to a massive blow out of the issue …whatever it may be.

Remember, that since March 2008 when the new disclosure changes occurred, you must disclose

ALL YOUR FRANCHISEES’ CONTACT DETAILS – Past and present.

There’s no picking the best of the bunch to act as advocates to franchise prospects as has happened in the past.

Typical “Ostrich triggers” for  Franchisors are ; Continue reading →

Have you ever considered franchising your business? Not every business is suitable for franchising and not every business owner is the right person to be a Franchisor.

Creating a system requires both an investment of finance and time and external professional direction. No business should proceed down the franchising path without a full analysis and awareness of their business.

Some Pre-Franchising FAQ’s

 Q. Can I put together my own franchising system? Continue reading →

The Australian National Mediator Approval Standards defines mediation as ;

“A process in which the participants, with the support of a mediator, identify issues, develop options, consider alternatives and make decisions about future actions and outcomes. The mediator acts as a third party to support participants to reach their own decision.”

Mediation is used successfully with relationship issues, workplace relations between employees, B to B disputes and certainly in franchise disputes. Continue reading →

Are you enticing new Franchisees?

…..and if so are you breaching The Franchising Code of conduct?

“Want to go to Hawaii?” the headlines shout.

Is this an advert for a travel company or an airline?

No, this advert appears in the Business and Franchise Opportunities in a newspaper column. The “carrot” is, if you buy this franchise for $ 200K, you will also get a “free holiday.”

This type of advertising for new franchisees is disturbing and hopefully not the beginning of a new trend. Continue reading →

Some Franchisors can find formulating KPIs to be a confronting exercise but the benefits to both Franchisor and franchisee from having measurable performance targets should not be underestimated.

Establishing KPI’s in your franchise often means going back to basics, and exploring the fundamentals of your franchise.

Are your franchisees achieving what they want from their business? or are they complaining that they can’t make any money?

Is your system flawed? and if it is are you brave enough to firstly acknowledge that there is an inherent problem and THEN seek professional advice to restructure?

Continue reading →