If you’re an investor, and you’re willing to invest in a business you can find:
- A good business opportunity and start your business from scratch
- Or, get a franchise “the right or license granted by a company (franchisor)”
There’re (mainly) 3-types of the franchise:
- Business format: The most popular form of franchising. The franchisor licenses the brand to a franchisee for use with a predetermined way of conducting business.
- Product: The franchisor grants the franchisee permission to sell/distribute a product using their logo, trademark and trade name.
- Manufacturing: The franchisor permits the franchisee the right to manufacture their products, and sell them using their trademark and name.
Franchise manual preparation - for the franchisor
When you have a franchise, you’ll need to have a franchise manual that the franchisee will fill to acquire your franchise.
A franchise manual preparation includes:
- The document that systemizes the business based on the studies to find out the required data
- Branding and the marketing material
- Determine the basics of the business (operations – marketing activities that will be needed – ..etc.)
- The financial model that explains the business
- Required presentations
All these documents will help you, as a franchisor, to discipline and control the business and add value to the franchise.
filling franchise manual - for franchisee
When you need to acquire a franchise from a specific company, in addition to the interview, there’re many processes required from the company/franchisor to make sure that you have the required knowledge to operate. So, you start to prepare a franchise manual or a franchise operations manual.
The franchise operations manual will contain the basic knowledge that shows how the brand will succeed and how the franchisees will operate the business. The more details the franchise manual contains will prove the knowledge of the franchisees.
The franchise manual contains every detail about the business operating, starting with the history and goals, to go through the financial.
Let’s have a look of the main sections in a franchise manual:
This section will include the goals of the business (short-term and long-term), mission, vision, and how the franchisees will plan to succeed.
This section will explain all the details of the store including:
- SWOT analysis of the location
- Product mix of the location
- How the traffic is generated to the store
- Store Capex (capital expenditure)
- Area of the store
- And so on
Many franchises require a financial franchise model that explains the financial details of the business.
There’re 2 ways for the financial franchise:
- The franchisor needs a full financial model that describes all the financial details, check the financial model.
- The franchisor give the franchisee a financial model with the brand and ask the franchisee to complete it based on the franchisee’s market.
The financial franchise includes all the details about financials, like:
- Expected expenses “in details”
- Expected revenues
- Annual and monthly rent
- Expenses and revenues projection
As consultants, we can help you to update or create a full financial franchise.
Why SME Consulting?
We in SME Consulting have experience in preparing the franchise operations manual with its all parts. As consultants, we’ll get to the heart of what the business is all about and how you can operate the brand and success. Also, we’ll help you to predict the expenses and the revenues “based on the franchisors’’ guidelines or with solid market research”.
If you want to know more details, Contact us NOW.