1. IIE ENTR112 MANUAL 2013 STEPS IN DEVELOPING A FRANCHISE SYSTEM

2. STEP1 Establish whether the business is suitable for Franchising Set out the concept and weigh it up against each criterion.

3. IIE ENTR112 MANUAL 2013 STEP 2 Draw up a Business Plan or Feasibility Study Determine whether the firm will: Be able to administer the franchising system properly Be able to support franchisees with administration functions Benefit more through franchising than operating a separate, independent business.

4. IIE ENTR112 MANUAL 2013 STEP 3 Establish a Pilot Operation Setting up a business Test the market and operation The outlet must be open for at least one year

5. IIE ENTR112 MANUAL 2013 STEP 4 Develop the Franchise Package The package covers: Franchise marketing kit Training programme and facilities Operation and procedures manual Start-up assistance

6. IIE ENTR112 MANUAL 2013 STEP 5 Develop the Manual and Agreement The following must be developed: Operations manual Training manual Franchise agreement

7. IIE ENTR112 MANUAL 2013 STEP 6 Meet all the Ethical Requirements Prepare the disclosure document and register with FASA. FASA Documents

8. IIE ENTR112 MANUAL 2013 STEP 7 Recruit and select Franchisees Very few of the mass of initial enquiries end up as suitable franchisees with the capital to invest. Franchisors must promote their franchises and handle enquiries promptly and in a professional manner.

9. IIE ENTR112 MANUAL 2013 STEP 8 Train the Franchisees Developing the training component requires: Designing and implementing a training unit or function Establishing a training location Developing the training programme

10. IIE ENTR112 MANUAL 2013 STEP 9 Manage the Franchise System The franchisees normally require the following support: Initial training to instill confidence Assistance in setting up the business Ongoing support, such as market information, product development and procedures.