Strategic planning

The lawyer may say that you must comply with the franchise laws. But this is not the first step. To begin with, Topfranchise recommends creating a business plan. Topfranchise will help you decide, based on your own experience in the market and the strength of the competition, where to sell franchises and who to sell them to. (What is the profile of your potential franchisee?) Topfranchise will also help determine, based on similar criteria, what franchise fees and royalties will be, what percentage of sales the franchisee will have to contribute to regional or regional advertising. Once the plan is in place, Topfranchise will develop professionally designed programs and materials, as described below.

Senior Specialist for Local Business Exploration:

A senior specialist will visit your franchise-ready business to review its operating characteristics and recommend policies and procedures to improve your franchise program. The Senior Specialist will also identify the operational elements of the business that are important to the legal, operational and marketing aspects of the franchise program, and will pass this information on to the appropriate staff of the Topfranchise franchise program.

Senior Specialist Analysis:

At Topfranchise offices, a senior specialist will review and recommend policies and procedures to help you expand your franchise program.

Franchise structure:

Topfranchise will advise on critical business decisions that will form the basis of the franchise program and will be incorporated into legal, operational and marketing documents and strategies. These issues include the formulation of company policy, market potential, rate of expansion, the franchise structure best suited to the client's situation, and the company's current resources available to meet the franchise's goals.

  • Franchise support programs. Topfranchise will determine the type and scope of services to be provided to the franchisee, including initial training, follow-up visits, site selection and advertising support. Thus, a comprehensive support program can be planned and the cost of this program can be foreseen.
  • The type of franchise offered. The franchisor may offer individual franchises, multidisciplinary franchises, or sub-franchises - or all three, depending on factors such as mutual investments, operational complexity, cost and nature of support programs, and expansion goals. In addition, the franchisor may offer an initial franchise or a conversion franchise (for a compatible existing business), or both. Topfranchise will recommend a franchise program tailored to the needs of the Client.
  • Territory definition. Based on the nature of the client's business, competition and other factors, Topfranchise will suggest whether the franchisee needs an exclusive territory and degree of exclusivity. If so, Topfranchise will analyze the available geographic and demographic data of the Client's existing business and prioritize relevant criteria such as population, competition, income level, market size needed to support the franchise, industrial or business base.
  • Profile of the franchise owner. The ability to identify the specific characteristics of the target franchisee is essential to structuring a franchise program. Qualifications such as financial resources, previous experience and business skills will be considered based on the Client's needs and Topfranchise's knowledge of the franchise market.
  • Internal staffing. Topfranchise will assess the human resource requirements for the franchise program and determine how best to meet the needs, whether by expanding the functions of current employees or creating new positions. Topfranchise will also check the Client's organizational structure, assess its adaptability to franchising and recommend changes if necessary.

Sources of income from franchising:

Topfranchise will review the Client's income options and recommend appropriate sources of income that can contribute to the Client's income and profit. Available sources of income include:

  • Down payment for the franchise. The franchise fee will be determined after weighing various factors, including the marketability of the franchise at different price levels, competition from other business opportunities available to potential buyers, and the cash flow generated by the business. The recommended initial franchise fee will be structured based on a number of factors such as sales, advertising, commissions, training, onsite and start-up assistance costs, market needs, and other variables.
  • Franchise business planning. After the analysis by the senior specialist, the team members assigned to the Customer's project will analyze all critical decisions and weigh their impact on the key aspects of the franchise program. Topfranchise will complete detailed proforma and financial projections containing cash flow analyzes of individual operating units and the franchisor's organization over a five-year period. In addition, Topfranchise will provide definitive advice regarding the business, legal and marketing characteristics that affect the success of the franchise program. Finally, Topfranchise formalizes its recommendations into a franchise business plan. This plan contains the key decisions, assumptions and financial projections for the franchise business needed to set short and long term goals. Clients can use this plan in presentations to financial institutions or for corporate planning.
  • Royalty. Royalties will be recommended after reviewing the client's business, in light of the franchisee's needs and current industry practice. These will be based on the need to maintain sufficient corporate cash flow, maintain general and administrative expenses and franchise services, and provide a steady income to continue operating the franchise. They also need to be affordable for franchises.
  • Topfranchise will develop a report on the structure of the franchise. This report includes comparisons of similar franchise companies or business models. It also provides recommended structures, fees, royalties, financial projections and benchmarks that define the concept as a franchise.
  • Topfranchise will develop the franchise structure and assumptions. Financial projections and preliminary forms are developed along with the information required to draw up the franchise documents.
  • Additional sources of income. Some franchisors also generate income from other sources, including the sale of products and services, rental of assets and real estate, and financing. Topfranchise will help the Client determine which sources are appropriate and practical.
  • Advertising fees. Local, co-op and corporate advertising fees will be recommended after assessing the amounts currently spent on advertising in existing divisions and the type of advertising required at the divisional level. The corporate advertising fees required of the franchisee will be based on the need for ready-made advertising in its various forms.
Василь Газизулин
+7 968 643 07 79vasil@topfranchise.comBest regards, Vasil Gazizulin,Head of TopFranchise.com project
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