REVIEW QUESTIONS I. What are the typical components of a franchisor\'s promotion
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REVIEW QUESTIONS I. What are the typical components of a franchisor's promotional package? 2 How does the information of interest to a prospective franchisee differ from what td the franchise puts into the promotional package? 3. What information is typically included in a franchisor's brochure? 4. Briefly describe each of the major manuals a franchisor may develop. What is What is the purpose each? What are the primary elements contained in each? 5 Why should a franchisor develop manuals or information booklets for prospective franchion and franchisees-in-training?Explanation / Answer
Answer1: The typical components of Franchisor's promotional package are Franchisee Agreement and Operating Manual.
Answer 3: Following information is included in franchisor's brochure.
The brochure will often start with some history of the business and how long it has been operating through franchising. It will then explain what a franchised outlet does, and what the franchisee will do within it. There should also be some information about the market and the prospects for this system within that market. An application for further information opens the door to the next stage of the recruitment process, which will probably be a meeting at the franchisor’s premises. What the prospectus should not contain is anything in the way of detailed financial information - that comes later once the parties know each other better.
Answer 4:
Operating Manual:
The information incorporated in the Franchise Operations Manual is essential to the initial and ongoing operations of a franchise which serves several very important functions in a franchise system. In its core the franchise manual acts as:
· Sales tool for prospective franchisees – for whom it acts as a demonstration of your expertise and the depth of your systems
· Training guide for new franchisees
· Reference tool for established franchisees
· Legally enforceable quality control document – without it, you cannot enforce system standards
· Cost control tool – saving both the franchisee and the franchisor money by improving and systemizing operations (labor control, purchasing controls, etc.)
· An important part of your defense in vicarious liability actions — by helping the franchisor clearly establish the franchisee as an independent contractor and explaining important areas of compliance
A typical franchise operations manual (sometimes divided into multiple manual documents) will be 300 – 500 pages in length and should contain dozens (and perhaps hundreds) of photos demonstrating the franchisor’s standards of operations. While some franchisors will choose the Do-It-Yourself method, they often will learn quickly that the development of a good manual can literally take 2,000 hours or more of dedicated time. By working with the iFranchise Group, you would generally expect to devote less than 30 hours of time – mostly spent talking with our consultants at your own location – prior to the receipt of the first draft of a manual. For a typical manual, the entire drafting process takes us about 16 weeks to complete.
A typical franchise operations manual (sometimes divided into multiple manual documents) will be 300 – 500 pages in length and should contain dozens (and perhaps hundreds) of photos demonstrating the franchisor’s standards of operations. While some franchisors will choose the Do-It-Yourself method, they often will learn quickly that the development of a good manual can literally take 2,000 hours or more of dedicated time.
Training Manual:
The information incorporated in the Franchise Operations Manual is essential to the initial and ongoing operations of a franchise which serves several very important functions in a franchise system. In its core the franchise manual acts as:
· Sales tool for prospective franchisees – for whom it acts as a demonstration of your expertise and the depth of your systems
· Training guide for new franchisees
· Reference tool for established franchisees
· Legally enforceable quality control document – without it, you cannot enforce system standards
· Cost control tool – saving both the franchisee and the franchisor money by improving and systemizing operations (labor control, purchasing controls, etc.)
· An important part of your defense in vicarious liability actions — by helping the franchisor clearly establish the franchisee as an independent contractor and explaining important areas of compliance.
In addition to Franchise Operations Manuals and Training Programs, the Franchisor can also develop:
• Train-the-Trainer Manuals and Programs – designed to help franchisees train their own staff on a consistent basis
• Pre-Opening Manuals – designed to help franchisors whose businesses are highly site dependent locate, negotiate, and build-out franchised locations
• Master Franchise Operations Manuals – which will incorporate information on franchisee recruitment, franchise sales, pre-opening support, ongoing support, and reporting for those franchisors with International Master Franchises or Licenses or those operating domestically using an Area Representative (or Development Agent) program
• Training Videos for franchisee employees – video is a great tool to push down standards of quality to the lowest levels of the organization (we have our own in-house video department that specializes in franchise sales and training videos)
• Online learning systems – the Franchise Group can help you to position your Operations Manuals, Training Programs, Training Videos, and Tests online in an organized curriculum that will selectively train and test all of the franchisee’s employees.
• Franchisor training tools – in addition to providing training tools for the franchisee and their employees, the Franchise Group also develops training tools for franchisors including Field Representative Operations Manuals and other tools for unit level performance improvement as well as manuals documenting franchisor operations.
?Answer 5: The main objective behind developing manuals or information booklets is to provide the clear picture of Franchisor's operation to the prospective franchisee so that they could understand every bits and pieces of franchisor's business that includes the expenses, cost controls, vendors selections, material selctions, quality aspects, customer satisfaction, delivering quality services, and many more. Such a manuals and informaiton booklets can help develop a healthy and prosperous business relationship between the Franchisor and Franchisee.
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