Franchisor Processes and Value-

Added Interactions with Franchisee

 1. Testing for appropriate skills and capacity.  Financial information is evaluated to determine qualification.  References are checked. The individual is interviewed to determine of the franchisor whishes to grant a franchise.

 2. Franchise is purchased after prospect has been given discloser information. 

The Franchisee is allowed limited use of the brand name

 3. Franchisee is trained.

a. Franchisee ongoing responsibilities to the franchise.

b. Product knowledge and formulas

c. Business processes

d. Customer service and sales process

e. Staffing

f. Other information that is not taught but are items that the franchisee must be responsible

 4. Evaluation of specific locations (These processes are sometimes done before the prospect completes the sale of the franchise)

a. Franchisee submits location

b. Business plan submitted by franchisee

c. Leasing and supplier contacts are made

5. The Franchisor leads the franchisee through construction and/or pre-opening process.

            a. Site specific evaluations

            b. Store design

            c. Final inspection and approvals before opening

 6. Opening

          a. Consultants assist onsite with the operations for a short period.

b. Internal consultants are made available for ongoing questions and support.

 7. Ongoing processes.

 a. Regular meetings where new product and process developments are announced

            b. Ongoing local market meetings for coordination of efforts

            c. Regular communications on issues and reinforcing training

  d. Regular compliance to standards inspections

            e. Staff and franchisee training opportunities made available

 8. Franchisor buying assistance

            a. Sets raw material and product standards

            b. Offers cooperative buying groups

            c. Develops and changes product mix to meet changing market demands

 9. Branding- Franchisor owns the product brand name and controls the brand promotion