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Advantages of Franchising

Advantages to Consumers

Franchising is booming because consumers like to purchase goods and services from familiar names with reliable standards of service and quality.


Advantages to Franchise Buyers

Here are some of the advantages of buying a franchise:

  • Established Track Record
    As a franchise buyer, you become an owner of a proven system of operation. Your franchisor offers products / services that have sold successfully. You therefore have a historical basis to both learn and base new strategies from to help you predict your own future.

Here are some of the advantages of franchising your company:

  • Expansion Capital - The franchisee makes the investment to open the branch unit.
 
 
Description of Franchise Services

As our client and partner, we will provide your company with virtually all of the resources and services necessary to successfully franchise your business.

Services for Companies Starting A Franchise Program


Our experienced in-house staff of consultants and attorneys will develop the entire franchise program for your company.

Business/Franchise Concept Formulation

Franchise Consultants will analyze your current business concept and determine what the best approach is for your expansion initiatives, i.e. either franchising, licensing or setting you up as a business opportunity.

Franchise Consultants will determine the best way to structure your business. We can recommend target cities to begin your expansion based on current standards in franchising, legal criteria, efficiency and profitability.

Additionally, based on your business and product line we can assist you with setting up the best financial structure possible (such as initial franchise fees, reoccurring royalties, advertising fees, and more) and lay out the guidelines for the franchisor/franchisee relationship.

We can also determine a typical franchisee's investment to get started and a realistic return on investment.

Business Planning

Franchise Consultants is part of a global company that specializes in business planning, capital raising and legal protection. We offer our clients first-rate business plan development and consulting (visit our business plan development site, Business Plan Advisors). We will develop a franchise plan for your company that includes the necessary support services you will need to provide the franchisees both in their start-up and then later stage

Franchise Consultants will determine how your assistance and support services will evolve as the number of your franchises grows. In this respect, we will structure your documents to allow for these changes and protect your future options.

Additionally, our experts will determine a realistic pace of expansion, the organization structure you will need in place to support this growth, and develop financial projections for your franchise program.

Market Research

Franchise consultants will research other similar franchise concepts including those that may appeal to your ideal franchise buyer. We will analyze their strengths and weaknesses, and position your franchise offering so that you can effectively compete for buyers.

Additionally, we can determine the financial benefits of buying one of your franchises versus being an independent or, if applicable, belonging to a competing franchise system.

Disclosure Documents
Franchise Consultants will prepare the documents you will need in order to legally franchise your company, such as the contract (Franchise Agreement) and the disclosure document (Uniform Franchise Offering Circular.)

Franchise Agreement

The Franchise Agreement defines the relationship between you and your company (the franchisor) and each franchisee. The Franchise Agreement is meant to protect your image and reputation. It helps ensure a uniform, consistent and smooth operation from one franchisee to the next. It helps protect an individual franchisee from adverse actions by another franchisee. By necessity, the Franchise Agreement is quite extensive. Additionally, the language and tone of the agreement is created to protect and favor you. 

Since the Franchise Agreement is usually in effect for a minimum of five to ten years, it is extremely important that potential problematic scenarios are covered that could arise in a franchise relationship. The agreement must reflect the latest in franchise law and be capable of accommodating future business changes.

Uniform Franchise Offering Circular

The Uniform Franchise Offering Circular document is required by law before you can sell a franchise.

The Uniform Franchise Offering Circular provides the potential franchisee with detailed background information on the franchise company, including:

  • Specific details about the franchisee officers, including their backgrounds;
  • The organization structure of the franchise company;
  • The business concept;
  • Funds required by the franchisee;
  • Training provided;
  • Termination provisions; etc.

Franchise Consultants will determine the best way of structuring your franchise corporate entity in terms of regulatory acceptance, limitation of liability, financial disclosure requirements, tax implications, auditing standards, trademark usage, future spinoff possibilities, and Federal Trade Commission and state regulatory requirements.

The Uniform Franchise Offering Circular and Franchise Agreement are more than just legal documents - they cover financial aspects of a business, including quality control, operating systems and procedures, marketing, future options/alternatives and many other business aspects. The work is extensive; an attorney alone does not possess sufficient knowledge or experience to develop these documents. All the work that we do is interrelated; our entire staff works together to develop these document for your company.

(If appropriate, we can develop licensing, business opportunity or distributorship agreements and make sure they comply with Business Opportunity Laws.)

Regulatory Approvals

Franchise Consultants will deal with the regulatory authorities that require approval of your franchise documents before you are allowed to offer your franchises for sale. This, like the Uniform Franchise Offering Circular, is paramount for a company to successfully be allowed, legally, to market its company as a franchise opportunity. Our relationship with these regulators should help smooth the way and overcomes obstacles. Substantial civil and criminal penalties can be imposed if the state and federal laws are not properly followed. Franchise Consultants will ensure that all legal documentation is properly created and filed.

Franchise Operations Manual

Franchise Consultants will review your existing company structure, including its systems, procedures and controls and determine if they need to be modified or strengthened for a successful franchise operation. In order for you to be a successful franchise opportunity with long-term clients, the franchisee must have all systems, procedures and methods in place. Additionally, franchisees must learn and run the franchise operation, quickly and smoothly. More importantly, the franchisee must be taught how to operate the business the way you created it. For both your company and the franchisee, being able to monitor the franchisee in order to determine success or non-compliance is paramount for mutual success.

Our firm will develop a Franchise Operations Manual and training schedule for you. The Franchise Operations Manual is an extension of the Franchise Agreement. Its style, format and tone must be such that it enables you to enforce your rules, regulations, policies and procedures.

Marketing Strategies


Franchise Consultants will develop the marketing strategy for selling your franchises. We will prepare a geographic expansion plan, and determine the best methods and approaches for attracting your ideal franchisee. Many new franchisors fail because they do not have the proper marketing approach and do not know the secrets to selling their particular franchise concept. Due to our international team of business plan writers and researchers, Franchise Consultants has the necessary tools to ensure that a solid and strategic marketing plan is in place for your company.

Marketing Materials

Franchise Consultants will develop a professional sales brochure and assist you with the overall design and copy for your online and print ads, while complying with federal and state laws and at the same time be attractive to prospective franchisees.

Franchise Consultants will assist you with an advertising and promotion plan for marketing your franchise offering. Franchising advertising and promotion requires specialized knowledge that most advertising agencies do not possess. Our knowledge of the effectiveness of different media worldwide can prevent wasting valuable dollars on the wrong ads in the wrong publications. We have successfully implemented such marketing and advertising promotions for hundreds of companies around the world.

Sales Program Manual

Franchise Consultants will supply you with a professionally written Sales program manual, so that you may be able to train your staff with the following:

Franchise selling
The psychology of the franchise buyer
Planning, organizing and controlling the sales effort
Handling and controlling leads
The sales process and steps to be followed with prospective buyers
Typical questions and answers
Scheduling and organizing meetings
Selecting the right people -- the first few franchisees are critical to your future success
Closing/Selling ratios for your concept
Complying with the franchise laws -- avoiding problems

The selling techniques, methods and secrets in our sales program manual have enabled our clients over the years to collectively sell thousands of franchises.

Feasibility Studies

Some clients have questions concerning their return on investment, their ability to compete in the franchise marketplace, the organization needed to support a franchise program, and the advantages of franchising. Drawing on a wide range of research sources, Franchise Consultants, under the umbrella of The A.Z.O. Group, can help answer these questions with an in-depth feasibility study and business plan.  These reports can also be used for presentations to potential investors. We are straight-shooters with our clients: if we do not think that your business is feasible, either to enter new markets or franchise out, we will let you know. If the report is negative, we will recommend ways to remedy the situation at hand in order to maximize your business potential. The Feasibility Study and Business Plan are not included in the Franchise Package.

Services for Established Franchise Companies

  • Our Clients
    From the time we begin working on your franchise program, you will get 6 full months of consulting, in many areas of franchise growth and various marketing and business strategies as well.

  • Franchise Marketing and Selling
    Franchise Consultants can provide guidance for 6 months in marketing and selling your franchises.

  • Regulatory Updates
    Franchise Consultants can amend or update your documents as needed (included for the first 6 months, a consulting fee applies after date expiration).

What If We Did Not Create Your Franchise Program?

We can help companies clean up a ‘mess’ that another firm, consultant or those who attempted to franchise themselves got into. Call us and we will discuss your needs and see how we can help you.

International Franchising

Franchise Consultants helps set up our clients in and out of the United States. We assist U.S. companies in going abroad as well as help foreign companies come to the U.S. We offer a full range of consulting services to these companies.

We have offices in ten countries with local representatives on the ground in each ready to help in the franchise, business planning or capital raising sphere for your business.

 
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