A. How to expand a franchise B. What to expect from an international franchisor What an international franchise package should include International Franchise Conference November 11 th 2011 Sofia Bulgaria © presented by R.G. Kirst

Your guest speaker Rolf Gerhard Kirst Personal introduction –Independent entrepreneur since 1977 –Experience in Cooperation since 1982 in the travel industry –Franchise experience since 1990 with travel agencies –Regional Master for Uniglobe Travel since 1994 –Board member of the DFV since 1999 –Board member EFF –Member of WFC –Founder and director of Franchise Pool International –International Franchise Director for BackWERK

Self service bakerySelf service bakery and fast food concept Business Format Franchise Today 290 outlets Franchise ranking No 1 in Germany Franchisor of the year in 2011 International in 7 countries

We are selling bread, rolls, pastries, snacks, sandwiches, coffee and more

Bake & Take in London All bread baked in store Backwerk in a train station New concept BackWERK Café

Franchise is … Franchise is …... not buying a product... is to be awarded to an family of business partners... is to benefit from the franchisors long- term experience... is to get access to a famous brand with best practices, beneficial sources and a network of partners nationwide

Elements of franchise Trade name Use of intellectual property Business System Know-how in business practices, technical methods or procedures Support by commercial and technical assistance within a framework

Franchise-package for System- or Master headquarter Marketing- Services Marketing- Services System protection System protection Management- Services Management- Services Trainings- Services Trainings- Services Products / Services Location / Franchise unit Location / Franchise unit Franchise- Partner Franchise- Partner System presentation Sales tools System presentation Sales tools Expansion strategy and approach Expansion strategy and approach Profile for potential prospects Profile for potential prospects Recruitment Process Trademark Registration Trademark Registration Master-Manual Franchise-contract Partner Management Business plan Controlling and Benchmarking Product-Portfolio Location Profile Location analysis Equipment and Shop fitting Equipment and Shop fitting International Trademarks International Trademarks Corporate Identity Customer target group Customer target group Marketing-/ Sales- concepts Signage IT-supported Organisation Book-keeping System Book-keeping System Staff / Team Financing Models Financing Models Initial training in theory and practice for franchisees and staff Initial training in theory and practice for franchisees and staff Ongoing Training Quality standards Service- Philosophy Price- and Condition Policy Purchasing Policy Innovation Marketing tools Internet marketing Strategic Networks On-site training concepts On-site training concepts Committees mandatory voluntary Tools for Quality Assurance Communication and Motivation Communication and Motivation Internal Communication Internal Communication Intranet Fanchise Sales Training Fanchise Sales Training Manuals Skeleton agreements Real estate concept Lease contract Meetings Territory Protection Customer Protection Royalty Structure Tool for Franchisor and Franchisee Tool only for Franchisor and Master © Copyright by Franchise Pool International 2010

Components of a franchise package 1.Franchise Partner 2.Products / Service 3.Location / Franchise Unit 4.Marketing 5.Management service 6.Training 7.System protection

Franchise Partner System Presentation Expansion strategy Profile of a franchisee Royalty structure Partner management Advisory board Communication

Components of a franchise package 1.Franchise Partner 2.Products / Service 3.Location / Franchise Unit 4.Marketing 5.Management service 6.Training 7.System protection

Product / Services Before starting abroad Demand Uniqueness Proven concept Pilot phase

Product / Service Requirements for a good system Product portfolio Service philosophy (mission statement) Price and condition policy Purchasing policy Quality standards Innovation

Components of a franchise package 1.Franchise Partner 2.Products / Service 3.Location / Franchise Unit 4.Marketing 5.Management service 6.Training 7.System protection

The enterprise / location Profile of requirement Location analyses Equipment Distinguishing features Real estate concept

Components of a franchise package 1.Franchise Partner 2.Products / Service 3.Location / Franchise Unit 4.Marketing 5.Management service 6.Training 7.System protection

Marketing International brand name / trademark Corporate Identity Customer target groups definition Marketing concepts Marketing tools Strategic networks

Components of a franchise package 1.Franchise Partner 2.Products / Service 3.Location / Franchise Unit 4.Marketing 5.Management service 6.Training 7.System protection

Management Success planning Financial model Controlling and benchmarks Accounting system IT supported organisation Communication / Intranet

Components of a franchise package 1.Franchise Partner 2.Products / Service 3.Location / Franchise Unit 4.Marketing 5.Management service 6.Training 7.System protection

Training Basic training in theory and practice –Franchise concept –Products / services –Sales –Marketing –IT –Business management Manuals

Components of a franchise package 1.Franchise Partner 2.Products / Service 3.Location / Franchise Unit 4.Marketing 5.Management service 6.Training 7.System protection

System protection / Legal issues Territory rights Trademark registration Customer protection Franchise agreement Franchise fees / royalties Quality control mechanism

It so easy ? Thank you for your attention