Running a Franchise

One of the benefits of investing in and running a franchise is being able to adopt another company's proven business model. However, the responsibility for running a successful franchise ultimately rests with the franchisee. So what are the keys to success?

Produce a franchise business plan

A strong franchise business plan lays out a franchisee's plans for running the business and allows them to understand how it is performing. A comprehensive franchise business plan will also help procure finance from lenders.

Most business plans are reasonably generic and numerous resources are available online to help franchisees write one, however they should include the following:

• Introduction
  An overview of the franchise and your plans for running it.

• Business Structure
  Outline who's who in the business and explain their responsibilities. 

• The product or service
  Describe your business offering in more detail and explain why now is the right time to launch the franchise.

• Market analysis
  Include information on your main competitors, the state of the market (is it growing or in decline?) and how future-proof it is, backed up with facts and figures.

• Operations
  Who are your suppliers? What are your health and safety policies and critical procedures? If you are planning to expand your operation, what are your future requirements? 

• Marketing Plan
  Discuss your marketing objectives, including number of sales or market share, how your products will be sold and your customer care policy. 

• Premises
  Provide information on your premises, including running costs, business rates and insurance. Are your premises big enough if you want to expand your operation in future?

• Financing
  Explain how much money you need and where the money will come from. Detail your break-even sales figure, how much money you'll need to live on and provide projections for when the lender can expect to be repaid. You should also include a profit and loss forecast, with information on anticipated sales and direct costs such as overheads and materials.

• Cash flow model
  How much money will be coming in and going out of the business?

Franchise business plans also need periodically updating to ensure they remain current, allowing the franchisee to check their progress and measure their success.

Work closely with the franchisor

In the process of establishing a franchise, the franchisor has already worked out what works and what doesn't, and established a successful way of conducting business, so following the franchisor's rules, procedures and processes will give the franchisee every chance of succeeding.

At Cafe2U, we believe new franchisees can never have too much help, so we maintain regular contact with them, take any necessary actions as soon as possible and provide them with all the support and advice they need. We also arrange training sessions and conferences, and make it easy for our franchisees to interact with one another so they can share their tips and ideas on running a successful business.

Watch the bottom line

Don't underestimate operating costs and ensure enough money is available to cover any emergencies and living costs.

Look after employees

Keeping employees happy is vital in order to deliver the best possible customer service. Give employees the tools to improve their skills, keep them up to date with what's happening in the business and remember to praise and encourage them. 

Plan ahead

Setting achievable, realistic goals for the business will prevent the franchisee from getting distracted by minor details or micromanaging employees unnecessarily.

To find out more about franchise opportunities at Cafe2U, click here.