More than a Viability Study, we call it the ‘Franchise Development Plan’

This is a vital step to take to answer the ‘Should I Franchise My Business?’ question.

Remember, whether your business can be franchised and whether it should be franchised, are of course, two different questions.

To reach a decision about whether you should franchise your business, you need to know what the outcome of doing so would be.

In working with clients, this is the first vital piece of work we do together.

The franchise development plan will lay out for you everything involved in franchising your business, how much you will have to invest in total and what the return will be.

The plan will give you a crystal clear picture of what you will have to do and what the outcome of franchising your business will be, enabling you to make a fully informed decision on whether to continue down the franchising route.

What's Included in a Franchise Development Plan?
A good franchise development plan is a highly detailed feasibility study including, but not limited to the following:

    • An analysis of the competitive environment in your industry sector, but also looking at the franchise sector as a whole. This should also show the growth potential in both
    • Details as to what the potential customer demand is for your franchise services
    • A list of differentiators your business model offers over others
    • A comprehensive financial forecasting model of initial and long-term investment and infrastructure requirements
    • The development and packaging of your overall franchise model that is both viable to all parties, and can be used to attract potential franchisees as well as help you meet your franchising objectives
    • Projections to show budgetary requirements for franchise development, franchisee recruitment, operations, support, staffing requirements and legal and other professional services

Many would-be franchisors make the mistake of compromising this stage of the process by trying to do things ‘on the cheap’. There simply is no shortcut at this stage.

What Are The Costs of a Having a Good Franchise Development Plan Done?
Before answering that, I take you back to analogy of buying a property…Would you just buy a building when you weren’t quite sure about how solid it was? I’d hope the answer would be ‘no’, and that you’d at least commit to a structural survey, in that case, to ensure the foundations are what they should be.

Expect to realistically spend between £2,500 and £8,000, or more for this step, depending on how comprehensive a study it is. Often this cost can be spread out and paid in instalments to make it easier on your cashflow, but not being prepared, or able to commit to this level of initial spend could well lead to big problems in your franchise development… Contact us for an initial conversation, without obligation, and we will be able to help you understand the initial commitments you will need to make…

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