how to choose the right franchise primer minute burger pdf · 2019. 1. 21. · have to know how to...

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HOW TO CHOOSEGetting into franchise is very much like getting into a long-term relationship. You have to know how to choose the right partner.

From this guide, learn how to pick a franchise based on the 3 foundational aspects of a good Franchise. Gain insight into some of the most important questions you need to be asking your potential franchise brands, and become more confident as you take the first step in making one of the most important decisions of your life.

THE RIGHT FRANCHISE

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FIRST! HOW READY ARE YOU?

A good franchise will have 3 core elements that are critical for franchisee success: (1) Brand, (2) System, (3) Support.

All 3 combined are a part of a franchisee’s sustainable choice for long-term growth.

BUSINESS OWNERSHIP:GO SOLO OR GET HELP?

When pursuing a business, make sure that you understand what you excel in. Some business owners excel in team management and people leadership. Others excel with operations and profitability. When you understand what you do best, you will also understand what parts of the business you will need others to fill in those gaps.

PLAY TO YOUR STRENGTHS

GET A PARTNERMost business owners have partners who help them with managing the business. The best partnerships are complementary. The best practice is to ensure that the business is covered operationally and financially. That means that, between the partners, the details of the business should be managed well and the business’ working capital should be funded and monitored well. Usually, these responsibilities are split with at least 2 managing partners.

BUILD AN ORGANIZATIONIf a partner is not something that appeals to you, be ready to build a strong organization to support you as a sole proprietor. An organization need not have a lot of high ranking positions like managers and executives. This is especially true for business just starting out. What is important about an organization is that it is sufficiently staffed and sufficiently trained to handle the responsibilities given to them.

If you are franchising, your franchise brand will be able to guide you in building that organization for your multi-store business.




ASSESS YOUR RISK TOLERANCEIf your tolerance for risk is high, an up-and-coming Brand may be acceptable for you. This is almost equivalent to starting up your own business, with some work already laid out for you.

Newer brands will have lower fees and requirements to franchise are often lenient. Newer brands will also have more flexible standards and will leave a lot of room for franchisees to build their own systems in the absence of their own.

Established brands will still involve some measure of risk, but the level of experience of the brand in franchising and the brand’s track record in as a successful franchise will reduce that risk. An established brand will have the advantage of already having good recall and recognition in the market and will have other Franchisees already in the network who have tried and proven the concept. If you have a medium tolerance for risk, an established brand will be more appropriate for you.

WHICH ONE IS FOR YOU:ESTABLISHED OR NEW?

By nature of being a business, even the most established brands in the market will involve risk. The business risk will be based on the amount of investment you will have to put into the business relative to your total earnings and capital, the amount of time you have to put into starting up, and your opportunity cost in choosing one franchise over the other, among other things.

BUSINESS IS A CALCULATED RISK







Before figuring out what franchise to get, understand how ready you are to start a business!CHECKPOINT

1

How much am I willing to invest into this business venture? After I invest in my business, will I still have enough working capital to survive for at least 6 months (to pay for fixed expenses like salary and rent) while I wait for my business to turn a profit?

2

What am I interested in and what am I particularly good at when it comes to owning and running a business? What kind of help will I need to cover the parts I am not very proficient in?

3 Do I want the freedom to create most of my business’ controls and systems, or do I want a plug-and-play system that has figured out most of the rules for running a successful business?

WHICH ONE IS FOR YOU:ESTABLISHED OR NEW?




4 How ready am I to start a business?

0 1 2 3 4 5 6 7 8 9 10

0-6: There is a lot you still need to understand about your appetite for risk and your capacity to start a business

7-8: You’re almost there but likely still on the emotional fence or feel like you need more resources

9-10: You pretty much feel like you are ready to take the plunge! Go for it!




WHAT GOOD FRANCHISES SHOULD HAVE

BRAND

SYSTEMS

SUPPORT

One of the first things you should look for in a good franchise is a recognizable and well-maintained Brand. Good franchise brands will continuously invest in their brand to outlast competition, will be willing to invest to stay relevant to their market, and will be consistent in the communication with customers and franchisees.

A franchise with good systems in place will make it easier for franchisees to understand how the business works and how to grow profitably within the franchise network. For new or established franchises, you should review the Systems they have in place at the store and for their franchisee network.

Good Franchised brands will offer continuous Support for their Franchisees, to help make sure they are able to focus on operations and growing their own store network. This can come in the form of training or additional support services that help improve sales at the store.

HOW TO CHOOSE THE RIGHT FRANCHISE






CONSISTENCY IN COMMUNICATION

WILLINGNESS TO IMPROVE

A well-maintained brand will have clear and consistent communication with both the Franchisees and the customers it serves. When a brand is consistent, that means that it has a clear idea of what it stands for. Well-maintained brands will have focus. Brands that aren’t being cared for will have confusion.

Focus and clear communication can best be seen in the way the brands are able to produce their merchandising and other content, both online and offline.

Even established brands should show the willingness to improve to stay relevant in the market, even if it requires an investment.

You can see constant improvement of the Brand through updates in store look, in the Brand imagery, and even in the new successful products or services they choose to launch.

A GOOD BRANDIS WELL-MAINTAINED







CHECKPOINTAmong the brands that I am considering, which brands have shown consistency in communication and the willingness to stay relevant to the market that it serves?

Among the brands that I am considering, which brands have an active Social Media presence that generates interesting content and high engagement among their online community?

Among the brands that I am considering, which brands have the store design, product and packaging design, and other brand designs that I will be proud to be associated with as a franchisee?


A GOOD BRANDIS WELL-MAINTAINED



3

2

1




AUDITING AND CONTROL

MARKETING

Auditing and control systems, such as internal inventory management and cash management procedures, help the franchisee make sure that the sensitive parts of the business are monitored.

A good franchise will provide the systems for a store to be the efficient. Effective systems can come in the form of standard operating procedures or usable platforms that can automate manual processes. Well-designed Systems make sure that the business can maximize its sales potential.

When a brand has good systems in place, it frees up the Franchisees’ time to dedicate to overseeing the day-to-day operations and to think about the business expansion through more stores or stronger sales-building efforts.

If you are looking to franchise, ask your potential franchise partners about the operational and management systems that they have developed for their franchisees.

A good franchise will have a system for marketing – from merchandising to local area marketing for the Franchisees’ sales-building efforts.

GOOD SYSTEMSLETS FRANCHISEES FOCUS ON WHAT’S IMPORTANT

SYSTEMS

ORDERING AND PROCUREMENTEspecially for a food business, raw material procurement takes up a significant amount of management time to ensure that the business has products to sell. A good franchise will provide Franchisees a simple and convenient way to order inventory from the Franchisor, if they require purchases to come from the Franchisor.







GUIDANCE ON OPERATIONS

RESEARCH AND DEVELOPMENT

PURCHASING

A good franchise dedicates resources and people to ensure that franchisees receive sound business and operations advice from experts of the brand. These experts act as consultants for when the franchisees need to reach profitable revenue or grow through more outlets.

Whether the franchise is into services or food, continuously developing successful new products and successful new concepts are a formidable sales-building support any franchisor can give to their network. Good franchises also consistently invest in market research and share these insights with their franchise network through regular briefings or through implemented projects.

Good franchises are meticulous and contentious about sourcing quality ingredients. This amount of care placed in the procurement of raw materials shows that the brand is concerned about the customers’ experience of the products at the store

GOOD SUPPORTHELPS FRANCHISEES GROW

ONLINE SUPPORTTechnology allows franchises to take advantage of online support to better serve their franchisees. Good franchises who are up-to-date and with a focus on innovation will be quick adopters of the use of technology for support. This allows franchisees to stay connected to the franchisors support system even outside of regular business hours.







What you should be looking for are all 3 of these combined.

A good brand, efficient systems, and constant support are a sign of a sustainable choice for a franchise. A franchisor who understands the needs of the franchisee, and moves to address them, will be easy to create a long-term relationship with.

ASK EXISTING FRANCHISEESGet feedback from the people who know the franchise brand the best. Existing franchisees understand what it takes to remain a part of the network and what kind of knowledge and skills are necessary to become profitable.

As a potential business owner of a franchise brand that will be required to invest capital, time, and effort into building a business, you should be keenly aware of what impact your decisions will have on your long-term sustainability as a business owner and operator. And, yes, you guessed it: the choice of which brand to franchise is one such critical decision you will have to make early in the process.

A horizon of at least 3 years will allow you to project the kind of returns you need to turn an acceptable level of profit for you, to allocate the required resources and time into starting and sustaining your new business, and to plan for growth and expansion within the network.

PLAN FOR THE LONGTERM

FRANCHISOR’S COMMITMENTIf you plan to be in it for the longterm, the franchisor should too! The franchisor’s actions say a lot about their willingness to commit to longterm growth with you. Look for signs of major investment: such as investment in upgrading the brand, capital investment that improves the operations of the network, and other such improvements that are being done for the benefit of the customers and the franchisees.

A GOOD BRANDIS IN IT FOR THE LONG-TERM

BRAND

SYSTEM SUPPORT





A GOOD BRANDIS IN IT FOR THE LONG-TERM

CHECKPOINTAmong the brands that I am considering, which brands have made significant investments in their brand and in their network that tell me they are planning for long-term business?

Among the brands that I am considering, which brands have I been able to speak to Franchisees from? What did they say that they liked very much about the Brand, Support, and System? What did they say they disliked about the Brand, Support, and System? From 0-10, how likely were they to recommend the brand to you for franchising?







OVERVIEW

WHAT BRANDS AM I ACTIVELY CONSIDERING?

MINUTE BURGER1 2 3 4

HOW MUCH WILL I BE REQUIRED TO INVEST?

PHP ____________________

FOR ______ STORES

PHP ____________________

FOR ______ STORES

PHP ____________________

FOR ______ STORES

PHP ____________________

FOR ______ STORES

HOW MUCH DOES IT COST TO OPERATE 1 STORE FOR 1 MONTH?

PHP _________ / MONTH PHP _________ / MONTH PHP _________ / MONTH PHP _________ / MONTH

WHAT IS THE AVERAGE RETURN ON INVESTMENT?

_____ MONTHS _____ MONTHS _____ MONTHS _____ MONTHS

REQUIRED FEES/FUNDS:ROYALTY FEESMARKETING FEES

FRANCHISE FEE PHP _________ / YEAR

PHP _________ / MONTH

PHP _________ / MONTHROYALTY FEESMARKETING FEES


PHP _________ / MONTH



PHP _________ / MONTH



PHP _________ / MONTH

PHP _________ / MONTH

WILL I HAVE ENOUGH WORKING CAPITAL TO LAST AT LEAST 6 MONTHS?

YES

NO

YES

NO

YES

NO

YES

NO

OTHERS OTHERS OTHERS OTHERS

WHAT IS THE RISK LEVEL OF THIS BUSINESS OPPORTUNITY FOR ME?

HIGH MED LOW HIGH MED LOW HIGH MED LOW HIGH MED LOW

WHAT OPTIONS ARE AVAILABLE TO ME?

PRINT ME!




OVERVIEW

MINUTE BURGER1 2 3 4

HOW MANY YEARS OF PROFITABLE EXPERIENCE DOES THIS BRAND HAVE IN FRANCHISING?

LESS THAN 3 YEARS 3-10 YEARS MORE THAN 10

YEARSLESS THAN

3 YEARS 3-10 YEARS MORE THAN 10 YEARS

LESS THAN 3 YEARS 3-10 YEARS MORE THAN 10

YEARSLESS THAN

3 YEARS 3-10 YEARS MORE THAN 10 YEARS

WHAT BRANDS AM I ACTIVELY CONSIDERING?

HOW LIKELY ARE FRANCHISEES WILING TO RECOMMEND THE BRAND TO YOU FOR FRANCHISE?

0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10

HOW STRONG ARE THESE BRANDS?

WHAT DO I LIKE MOST ABOUT THE BRAND’S:

SOCIAL ADVOCACIES

MARKETING & COMMUNICATION

PRODUCTS

MARKET POSITIONING

STORE DESIGN

PRINT ME!




About UsEstablished in 1982 with more than 35 years of experience of brand-building and more than 10 years of franchising experience, Minute Burger is currently the leader in the Buy 1, Take 1 burger category for innovation and franchising.

Minute Burger has since kept innovation as a part of its brand. In 2012, Minute Burger launched an industry-changing new premium product line called the Bigtime Sandwiches that keeps customers coming back.

Through the creative and technical efforts of the marketing and commissary teams, Minute Burger’s annual product launches have positively impacted sales for the total Franchisee network. Franchisees today are more profitable than they have ever been in the history of Minute Burger Franchising, with return on investment estimated to be within 18 to 22 months.

AS A BRAND






Minute Burger’s systems are a product of more than 35 years of food service experience. We are a firm believer in technology and automation, while keeping store overhead low. We have integrated this into every step of the process. Minute Burger has a novel system that allows Franchisees to order stocks the day before for fresh delivery the next day to ensure maximum freshness at the store.

Our system for quality and standards auditing has encouraged our network to comply to our brand’s product and store experience standards, which our loyal customers have come to know and love. Even with these hallmark achievements, Minute Burger’s operations team continues to update the system that benefits both the franchisee and the customers through operational improvements.

AS A SYSTEM



About Us




Minute Burger understands that the success of the franchisees is their success. The brand emphasizes proper support for its franchisees. It has a dedicated group manager who will coach and mentor franchisees as they build a profitable business with the brand. At any time of the day – including after-office hours – franchisees have access to an online support platform that allows them to continue coordination with the franchisor.

Minute Burger’s other support includes: (1) an active R&D and Commissary group that ensures the continuous improvement of its already-impressive product line, as well as support for the procurement and delivery of inventory; and a purchasing team that works hard to source quality and competitively-priced raw materials and products from all over the world.

AS SUPPORT



About Us




A WORD FROM OUR FRANCHISEES

Franchisee since 2008 Luzon

Hindi nakakahinayang mag invest or magdadag ng new stores dahil alam mo na may laban ang products. Overall maganda ang support system at franchise system ng MB. Masasabi ko na ang Minute Burger ang nagpalago at nagpaganda ng buhay ko… maraming pag-unlad sa akin sarili, natuto akong mag negosyo at na convience na magdagdag ng mas maraming stores para mas marami ang kikitaiin mo.

Renan S.

Franchisee since 2010 Mindanao

Franchisee since 2010 Luzon

Minute Burger’s marketing support provides local store marketing opportunities and introduces new products that capture the hearts of our customers. Minute Burger’s guidelines and procedures are easy to follow and they always make sure that the products we order are delivered to us in good condition and quality.

Sarabeth P. Yvette B.


The brand’s social media marketing so far helped in increasing [my stores’] sales, as it provides a platform for us to constantly inform consumers on promotions and new products. The strategy based on developing new products and improving existing products attracts both current and new markets, and these help sales growth and market growth.





READY TO CHOOSE? GIVE US A CALL

(0906) 392 6610 (0998) 862 6749 4 Dama de Noche St. UPS 4, Paranaque City Philippines

METRO MANILA

(082) 244 0191 (0995) 011 8064 (0929) 3137652 Look for Cherry Libungan

MAA, DAVAO CITY

(0905) 913 7795 (0919) 4361016 Look for Melody Garcia

GUIGUINTO, BULACAN

(0905) 9137795 (0919) 4361016 Look for Melody Garcia

URDANETA, PANGASINAN

(032) 345 4053 (0917) 3297534 Look for Gina Ecarma

MANDAUE, CEBU

(0915) 246 9970 Look for Melody Binas

CAVITE & LAGUNA

(0947) 168 3761 Look for Aizelle Banayo

BATANGAS, QUEZON, BICOL

(088) 855 3491 (0922) 274 0038 (0997) 7369277 Look for Dionel Vale

BALOY, CDO

(033) 320 0434 (0918) 2610843 Look for MJ Tumpag

PAVIA, ILOILO



how to choose the right franchise primer minute burger pdf · 2019. 1. 21. · have to know how to...

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