The first step towards the franchise route is to prepare a franchise plan that gives complete information about your company and its franchise system. Read on to know more about it.
A business script that carries all the information about the franchise system is advisable to be given to aspiring franchisees prior to the signing of the franchise agreement. It provides the prospective franchisees a history of the franchising company and the franchise operations. It is of great use for the franchisees as it helps them in careful analysis of the franchising business. Importantly, it must be provided to the franchisees at least 10-15 days prior to signing the franchise agreement. Let us study the components of this plan.
What is incorporated in it?
Despite the industry, size of the business, or any other factor, the franchise information document follows a simple format and contains similar information with specific business statistics. It includes:
Apart from these, the document must contain information about your current and previous franchisees, for how long they have been with the company, why they have terminated the franchise agreement (if any). This kind of information helps a franchisor in building a good image of himself and raises his merits.
Legal information to be considered
Being a franchisor, you must draft a franchise document (along with a separate franchise agreement) that contains legal information of your franchising business. Therefore, you have to keep in mind certain legal aspects while incorporating the information about exclusive franchise territory (if granted to the franchisees) and under what conditions the franchise agreement gets terminated. You have to specify these legal facets of your franchising business to make it run smoothly and profitably.
It is advisable to take help of a good attorney who has specialisation in franchising. He will guide you and enable you to come up with a comprehensive document carrying the precise information of your franchising company. The document plays a key role in expanding the business through worthy entrepreneurs.