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Post on 22-Feb-2020
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Franchising
Franchisees Wanted
Magical Matching Machine
Franchising Can be your
Key to Small Business
Success !!!!
What is Franchising ??
OR
A form of business organization in which a company (franchised business)
which already has a successful product or service (the franchisor)
enters into a continuing contractual relationship (franchise agreement)
with other businesses (franchisees)
operating under the franchisor's trade name (license)
and usually with the franchisor's guidance (training)
in exchange for a fee. (royalty)
Examples: Subway, McDonalds, 7-Eleven
Franchising is the practice of using another company’s successful business model to
your own benefit
Distribution Method
Uniform Rules, Government Regulated
Over 3000 Franchises in 80 Industry Groups
New Franchisee every 8 minutes
Benefits of Franchising
1. Franchising will help you to own your own business without requiring your time and effort to create, research and test a new business idea
2. Becoming a franchisee will allow you to reduce your risk as a new business owner.
3. Expect lower costs as a franchisee due to group buying power.
4. Franchisees have the power of national brand recognition.
5. Business ownership is a way to take back control of your life.
6. What are your wealth creation goals?
Franchising Can be your Key to Small Business Success
Why is franchising popular?
Easy to set up
Best practices immediately – no learning curve
Relatively low set-up costs
Brand recognition – multiple locations
Purchasing power
Consumer confidence - no surprises
Manager is the owner – own boss
Combined marketing, branding, etc.
Increased profit = lower than royalties
Ongoing support & training
95% of all franchises are still in business after 5 years
Economic Impact of Franchises Businesses
The direct impact of franchise businesses (What occurs in franchise businesses)
• 767,483 operating franchised businesses
• 9,797,117 jobs
• $229.1 Billion in Payroll
• $624.6 Billion Economic Output
• The total impact of franchise businesses (What occurs because of franchise businesses)
• 18,121,595 jobs
• $506.6 Billion in payroll
• $1.53 Trillion total economic output
Why franchise?
People prefer franchised businesses
Most cost effective growth model
Accelerated growth potential
Supplements your existing distribution system
Process increases your current systems, controls and management.
Protect your business model
Pre-empt competition
People pay you to expand your business!
Why franchise?
Businesses for which franchising work best have one or several of the following characteristics:
A good track record of profitability
Faster start
Less Risk
Relatively inexpensive to operate
Purchasing power
Name recognition
Business support
Easily duplicated
Detailed systems, processes and procedures
Relatively easy to operate
The Benefits of Buying a Franchise
Franchising process
Franchise feasibility and viability study
Develop the concept, business and franchise model
Enable the franchisor
Prepare and finalise documentation
Develop manuals (Usually consist of 3 sections) Recruitment & Selection of the prospective franchisee,
Pre-opening manual,
Daily operations manual (15 sections)
Launch the franchise network
Manage recruitment process
What can Franchisors do for you?
Save you time & cost of developing the administration – allowing you to focus on your business
Franchise coaching
Evaluate your franchise system
Franchise feasibility and viability study
Develop the concept, business and franchise model
Enable the franchisor
Draft legal documentation
Franchise Association
Develop processes and manuals
Manage recruitment process
Chair franchise forum meetings
Annual franchise system review
On-going support
Give you the benefit of previous experience
What are the experience benefits?
Corporate identity and brand development
Training models and implementation
Websites and Intranet
Franchisee financing
IT solutions
Increasing sales – techniques
Alternative business solutions – problem solving
Ongoing involvement
What Makes a Franchise Successful?
• There are many reasons as to why you might want to franchise your business. But before you consider franchising your business, you should know precisely what makes a franchise successful. Through years of hands-on experience, I have identified an eight-part criterion that most often makes a franchise successful:
1. Business Management
2. Market Viability
3. Profit Forecasting
4. Investment Marketability
5. Strategy Development
6. Budget Analysis
7. Capital Resources
8. Business Structure
Can I Qualify for a Franchise? prospects you need to be a franchisee!
• Capital
• Personality
• Skills
• Experience
Who is Esquires Coffee Houses • Started in Canada 1993
• The first Esquires coffeehouse opened in the suburb of Sunshine Hills, a residential district of the city of Vancouver, Canada, in 1993.Further branches were opened across Canada, before the company went international on a franchise basis.
• Sold the franchise in the UK and Ireland 1999
• In 2002, brothers Stuart and Lewis Deeks established the Esquires brand in Australasia through a master franchise agreement with the Canadian parent. Under the name Franchise Development Ltd, they grew the business to become the leading branded chain in New Zealand by store numbers.
• In 2011 the Deeks sold the Australia and New Zealand franchise rights to Retail Food Group while retaining the rights to the Middle East, China and a number of other jurisdictions.
• In 2013 the Deeks merged their business into NZX-listed Cooks Global Foods. In April 2013, Cooks acquired the intellectual property and master franchising rights to Esquires Coffee Houses worldwide - excluding New Zealand and Australia. The company also owns wholesale businesses in related industries.
• Today there are more than 40 Esquires stores in Australia and New Zealand operated by Retail Food Group including two drive-thru outlets.
• In April 2014 Cooks Global Foods acquired the Esquires Canadian intellectual property rights, the original Esquires franchisor founded in 1993.
Esquires Today 134 outlets (2002 - 2014)
• New Zealand 45 outlets
• Australia 5 outlets
• Fiji 3 outlets
• China 25 outlets (12 in the pipeline)
• United Arab Emirates – Dubai 4 outlets
• Bahrain 4 outlets
• Kuwait 6 outlets
• Saudi Arabia 10 outlets
• UK 25 outlets – 8 in the pipeline
• Ireland 7 outlets and 3 in the pipeline
New Markets
• Cyprus
• Indonesia
• Mongolia
• Malaysia
• Singapore
• Bangladesh
• Turkey
Why is Esquires franchising popular?
Easy to set up
Best practices immediately – no learning curve
Relatively low set-up costs
Brand recognition – multiple locations
Purchasing power
Consumer confidence - no surprises
Manager is the owner – own boss
Combined marketing, branding, etc.
Increased profit
Ongoing support & training
95% of all franchises are still in business after 5 years
What esquires can provide you with (benefits) ?
Corporate identity and brand development
Training models and implementation
Websites and Intranet
IT solutions
Increasing sales – techniques
Alternative business solutions – problem solving
Ongoing involvement
Marketing support
Product development
This ongoing
development of the
brand image will
continue into
Canada, England,
Ireland and shortly...
the USA
Accompanying this,
technological advances
will allow for a refined
presentation of either new
or revised cafe design
Making the design process... A more accurate representation
More quickly accomplished
A superior board room presentation
A greater understanding of the
working cafe via a 3D concept
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