Franchise (Licensing) Feasibility Analysis
Assessing whether franchising (or licensing) is an appropriate expansion strategy, given the viability of the concept in the marketplace and historical financial performance. Franchising vs. licensing is a topic that merits consideration of legal as well as long-term business considerations. An on-site analysis of the firms financial, operational, marketing and legal profiles is the best practice approach for conducting any franchise feasibility analysis. The on-site analysis is followed by research and then a detailed report of feasibility findings and recommendations. For firms that want an affordable franchise feasibility analysis without having to pay the travel, etc. costs of an on-site visit, call or email for details.
Franchise Organizational Structure & Franchise Management Planning
Developing the appropriate franchise organizational structure to operate the franchise entity; identifying franchise management skills and incremental staffing requirements for the expansion effort. Many emerging franchise entities fail to adopt the proper franchise organizational structure or use inappropriate and untrained personnel – creating current or future problems and franchise liability. Like a football team, a franchise organization is made up of people who must be properly organized and trained to be effective. Because it is highly adaptive, a functional franchise organizational structure is appropriate in many, but not all cases. These and other issues involve strategic planning to create a “blueprint” for successful expansion efforts based on blue ocean strategies. These types of strategic planning issues are not addressed by franchise packaging companies or franchise attorneys, yet play a vital role in the ultimate success (or failure) of the expansion effort. Ask them what kind of franchise organizational structure to use and they’ll respond “a corporation or LLC.” They just don’t get it. Finally, how transactions are structured is another way to achieve tens of thousands of dollars of annual savings as the franchise program moves forward – another topic not addressed by franchise packaging companies or franchise attorneys.
Analysis of existing franchise competitors to determine relative strengths and weaknesses in order to properly position the franchise offering.
Structuring Franchise Relationships
Structuring franchise fees, contractual provisions and other parameters of the franchise relationship for a “win-win” scenario that encourages timely payments and innovative ideas, as opposed to a rigid structure that causes early franchise relationship issues and invites future franchise litigation land mines.
Positioning your company based on a blue ocean strategy so that it stands out from the other 3,000+ companies operating in the franchise industry.
Franchise Capitalization & FDD Auditing Issues
Determining the appropriate franchise capitalization amount and strategy for avoiding franchise fee impound conditions in franchise registration states. We also counsel in proven techniques to significantly reduce franchise FDD audit costs and work with your CPA firm to answer any FDD auditing questions.