Franchise development algorithm

Setting up internal systems for the franchisor is crucial for the successful organization of a franchise network. In addition to developing all necessary documents and materials for franchisees, the franchisor also needs to create internal systems, mechanisms, and algorithms that will enable:

• promoting the franchise,
• processing franchisee applications,
• contracting with franchisees, ensuring license issuance,
• opening franchise points,
• monitoring franchisee activities,
• providing assistance and support to franchisees,
• analyzing information about the franchise network's operations and making necessary adjustments.

It's important for the franchisor's system to designate responsible individuals for carrying out each of these actions.

Franchisee Search and Selection

To attract franchisees into the system, the franchise needs to be promoted. Let's remind ourselves of the main channels for franchise promotion – directories, exhibitions, the franchisor's website, consultants, and associations. However, the franchisor should remember that the best advertisement for their franchise is the existing company-owned and franchised network points. Franchisors often note that the most successful and motivated franchisees are those who became clients of the network, liked the product/service, and wanted the same business. Therefore, as franchise consultants, we always recommend that franchisors place flyers with information about the franchise in all operating network points.

At the same time, the franchisor should not offer their franchise to everyone who shows interest. The key competence of the franchisor is to select candidates who will be successful and contribute to brand development alongside the franchisor. For this purpose, the franchisor should create a portrait or profile of the ideal franchisee, according to which they evaluate the prospects of candidates. At the start of launching a franchise program, almost all franchisors make the same mistake – they try to recruit franchisees as quickly as possible by signing contracts with everyone who applies. However, the first or pilot franchisees should be selected more carefully and be most loyal to the franchisor because they will undergo the initial testing of the franchise system. It is the pilot franchisees who will create the company's reputation as a franchisor and provide the first reviews of the franchise.

Training and Support for Franchisees

Once the franchise points have started operating, the franchisor must provide training for the franchisee and their key employees according to their program and provide ongoing assistance and support. Let's highlight three main tools for organizing assistance and support for franchisees:

• All essential information for franchisees can always be found in the Business Operations Manual. The franchisor should always remind franchisees that before contacting the franchisor, they should carefully study the manual. Only if they cannot find the answer to their question should they contact the franchisor. In this sense, the manual should be detailed and specific to help franchisees with their daily operations.
• Answers to frequently asked questions, work instructions not included in the manual, and other useful current information can be posted in franchisee common areas (such as on the website in the personal account or in the CRM system) or provided electronically.
• To address any other emerging issues, franchisees are assigned a curator – a representative of the franchisor company who facilitates communication with all company departments for franchisees and ensures prompt resolution of emerging issues.