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Franchising Strategy &Franchising Strategy &
Execution ProgrammeExecution Programme
Snapshot of Methodology with some aspects ofSnapshot of Methodology with some aspects of
programme explained in Detailprogramme explained in Detail
Franchising ProgrammeFranchising Programme
Implementation: PhasesImplementation: Phases
Sustained StrategySustained StrategyStrategic DirectionStrategic Direction
Strategic
Guidelines
Strategic
Guidelines
StrategyStrategy
Stage
Output
Institutionalization
of the process
Institutionalization
of the process
AS-IS Analysis and
Defining of Strategy
AS-IS Analysis and
Defining of Strategy
Development of
solution and
testing
Development of
solution and
testing
Implementation of
solution across all
units
Implementation of
solution across all
units
Activity
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
We are
here
Franchisee Management ProcessFranchisee Management Process
 Level 2 Process – DefinitionLevel 2 Process – Definition
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
Product
Portfolio
Channel
Strategy
Market
Classification
Opportunity
Promotion
Franchising ImplementationFranchising Implementation
ProgrammeProgramme
 Level 2 Process – DevelopmentLevel 2 Process – Development
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
Evaluation &
Selection
Process
Franchisee
Value
Proposition
Franchisee ROI
Franchisee
Policies
Induction
Training
Takeoff Manual
Franchisee
Takeoff
Process
Enquiry
Management &
Conversion
Franchisee
Performance
Management
New Product
Launches
Promotion &
Other Support
Partner
Relationship
Management
Franchising ImplementationFranchising Implementation
Programme ExampleProgramme Example
 Level 2 Process – DevelopmentLevel 2 Process – Development
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
Evaluation &
Selection
Process
Franchisee
Value
Proposition
Franchisee ROI
Franchisee
Policies
Induction
Training
Takeoff Manual
Franchisee
Takeoff
Process
Enquiry
Management &
Conversion
Franchisee
Performance
Management
New Product
Launches
Promotion &
Other Support
Partner
Relationship
Management
Successful FranchiseeSuccessful Franchisee
 A successful XYZ Company Franchisee can be defined asA successful XYZ Company Franchisee can be defined as
someone who meets the following three criteria:someone who meets the following three criteria:
 Maximizes the profit potential of their business.Maximizes the profit potential of their business. Part of thisPart of this
requires building strong sales team since institutional sales is arequires building strong sales team since institutional sales is a
critical part of our business. A XYZ Company Franchisee alsocritical part of our business. A XYZ Company Franchisee also
needs to control their business costs, since travel is a low marginneeds to control their business costs, since travel is a low margin
business.business.
 Ensures all customers have a great experience every time.Ensures all customers have a great experience every time. TheThe
long-term profitability of a XYZ Company Franchiseelong-term profitability of a XYZ Company Franchisee’s business’s business
and the goodwill of the franchise brand both depend on building aand the goodwill of the franchise brand both depend on building a
base of loyal, satisfied repeat customers.base of loyal, satisfied repeat customers.
 Comfortable adopting the role of XYZ Company Franchisee.Comfortable adopting the role of XYZ Company Franchisee. ThisThis
means the person will participate constructively in the franchisemeans the person will participate constructively in the franchise
program, attend meetings and engage with other XYZ Companyprogram, attend meetings and engage with other XYZ Company
Franchisees and the XYZ Company team.Franchisees and the XYZ Company team.
The Four UThe Four U’s of Unsuitable Franchisee’s of Unsuitable Franchisee
 XYZ CompanyXYZ Company’s selection procedures and criteria should weed’s selection procedures and criteria should weed
out XYZ Company Franchisees with theout XYZ Company Franchisees with the 4 U’s4 U’s i.e. franchiseesi.e. franchisees
who arewho are
 Under-preparedUnder-prepared
 Under-capitalizedUnder-capitalized
 Unsuited temperamentallyUnsuited temperamentally
 HavingHaving Unrealistic expectationsUnrealistic expectations of what running a business wasof what running a business was
really likereally like
Lead through
Email
Lead Through
Phone
Lead to
XYZ Company’s
Office
Lead through
Referral
Lead
Management
System
System Generated
Enquiry
Form Sent
Investment
Capability
Above 1.5
Lakh
Phone Call
to Access
Willingness
Suitable &
Willing
Proceed
To Site
Evaluation Process
Report on
Lead Funnel
Form Filled
Closed
In LMS
Closed
in LMS
N Y
Y
N
Y
N
Suitable
Y
N
Pre-SelectionPre-Selection
LeadLead
ManagementManagement
ProcessProcess
Enquiry & Application FormEnquiry & Application Form
 This asks candidates detailed questions relating to their family situation, backgroundThis asks candidates detailed questions relating to their family situation, background
experience, intentions about the business and financial capability. The enquiry formexperience, intentions about the business and financial capability. The enquiry form
produces a detailed report on the candidateproduces a detailed report on the candidate
 providing an overview of their initial suitabilityproviding an overview of their initial suitability
 as well as alerting the XYZ Company to anyas well as alerting the XYZ Company to any “red flags” which deserve closer attention.“red flags” which deserve closer attention.
 Some of the Key Information Sourced isSome of the Key Information Sourced is
 Current Monthly IncomeCurrent Monthly Income
 Maximum Investment in XYZ Company FranchiseeMaximum Investment in XYZ Company Franchisee
 Current Profession & DesignationCurrent Profession & Designation
 How soon can you start if selectedHow soon can you start if selected
 Population of your city/townPopulation of your city/town
 Tell us about your business experienceTell us about your business experience
 Tell us about your educational qualifications or skillsTell us about your educational qualifications or skills
 Tell us why you are interested in becoming a XYZ Company Franchisee?Tell us why you are interested in becoming a XYZ Company Franchisee?
 How did you hear about XYZ Company?How did you hear about XYZ Company?
 Do you have secondary income from to cover your financial needs during a start up period?Do you have secondary income from to cover your financial needs during a start up period?
 Do you have others who will PARTNER with you in the business? Who are they?Do you have others who will PARTNER with you in the business? Who are they?
 Please mention educational background and current income of PARTNERS?Please mention educational background and current income of PARTNERS?
 When do you anticipate you would want to launch you new business?When do you anticipate you would want to launch you new business?
 Do you have Regional space available? How many square feet? Whether your own /lease /rent?Do you have Regional space available? How many square feet? Whether your own /lease /rent?
 TERRITORY YOU DESIRE: Please describe the geographical location where you would like aTERRITORY YOU DESIRE: Please describe the geographical location where you would like a
franchise? If in a City with above 5 Lakhs people, mention specific areas in the City you arefranchise? If in a City with above 5 Lakhs people, mention specific areas in the City you are
interested ininterested in
Triangulation Selection ProcessTriangulation Selection Process
 Selection uses a process known as "triangulation". This involvesSelection uses a process known as "triangulation". This involves
seeking at least three sources of information about aseeking at least three sources of information about a
candidate. Scientists often use triangulation in their researchcandidate. Scientists often use triangulation in their research
to check the validity of their conclusions. They do this byto check the validity of their conclusions. They do this by
seeking information on a problem from three different angles.seeking information on a problem from three different angles.
If the feedback is consistent they know they are in the rightIf the feedback is consistent they know they are in the right
track.track.
 Check 1Check 1 : A Detailed Application Form: A Detailed Application Form
 Check 2Check 2 : Site Visit & Observations. (40 Points): Site Visit & Observations. (40 Points)
 Check 3Check 3 : Structured Behavioural Assessment based on Interview: Structured Behavioural Assessment based on Interview
& Self-Assessment Questionnaire of the candidate (60 Points& Self-Assessment Questionnaire of the candidate (60 Points
Site Visit & Observations (40 Points)Site Visit & Observations (40 Points)
 This Check is based on actual site visit and observations. This is based on evidence rather than just personal bias or gut feel.This Check is based on actual site visit and observations. This is based on evidence rather than just personal bias or gut feel.
Another method of gaining good information on a candidate is to talk with references and people who know the candidateAnother method of gaining good information on a candidate is to talk with references and people who know the candidate
well. A copy of Site Visit Assessment is attached in Annexure 2. The Maximum Score in Site Assessment is 40 Pointswell. A copy of Site Visit Assessment is attached in Annexure 2. The Maximum Score in Site Assessment is 40 Points
 Some of the key things assessed in a site visit are:Some of the key things assessed in a site visit are:
 Territory SuitabilityTerritory Suitability
 Size Potential of Franchisee TerritorySize Potential of Franchisee Territory
 Presence of Big Travel Agent/ Company in NeighbourhoodPresence of Big Travel Agent/ Company in Neighbourhood
 Location SuitabilityLocation Suitability
 Regional Space LocationRegional Space Location
 Regional Space FrontageRegional Space Frontage
 Regional Shop OwnershipRegional Shop Ownership
 Financial Health & Provisions of FranchiseeFinancial Health & Provisions of Franchisee
 Current Assets OwnedCurrent Assets Owned
 Provision for Working CapitalProvision for Working Capital
 Secondary Source of IncomeSecondary Source of Income
 Relevant Professional SkillsRelevant Professional Skills
 Sales ExperienceSales Experience
 Current Personal and Professional NetworkCurrent Personal and Professional Network
 Handling of TeamHandling of Team
 Comfort with IT, Computers & InternetComfort with IT, Computers & Internet
 Suitable BackgroundSuitable Background
 Age Group of FranchiseeAge Group of Franchisee
 Educational background of the FranchiseeEducational background of the Franchisee
 Self Employment/Business ExperienceSelf Employment/Business Experience
 Company Structure / Partnership structureCompany Structure / Partnership structure
 Market Reputation/ Reference CheckMarket Reputation/ Reference Check
 Positive & Progressive AttitudePositive & Progressive Attitude
 Willingness to focus on Corporate SalesWillingness to focus on Corporate Sales
 Attitude towards business: Opportunistic, Transactional, Relationship, Extended EnterpriseAttitude towards business: Opportunistic, Transactional, Relationship, Extended Enterprise
 Fitness with the vision: Poor, Somewhat Aligned, Aligned, Ahead of timeFitness with the vision: Poor, Somewhat Aligned, Aligned, Ahead of time
Structured Behavioural Interview &Structured Behavioural Interview &
Candidate Self-Assessment (60 Points)Candidate Self-Assessment (60 Points)
 This Final Check should be based on a structured behavioural interview and observations of a candidateThis Final Check should be based on a structured behavioural interview and observations of a candidate
based on evidence rather than just personal bias or gut feel. This information can then be quantifiedbased on evidence rather than just personal bias or gut feel. This information can then be quantified
using a rating scale which defines what low, average and high behaviours look like in practice. (This typeusing a rating scale which defines what low, average and high behaviours look like in practice. (This type
of rating scale is called a Behavioural Anchored Rating Scale or BARS and has been shown by research toof rating scale is called a Behavioural Anchored Rating Scale or BARS and has been shown by research to
be the most accurate way of assessing people).be the most accurate way of assessing people).
 The candidate needs to be assessed for profiled during the interview stage on the followingThe candidate needs to be assessed for profiled during the interview stage on the following
psychographic criteria. He needs to be administered a self assessment test which is attached inpsychographic criteria. He needs to be administered a self assessment test which is attached in
Annexure 2. His self assessment is tallied with answers during the interview.Annexure 2. His self assessment is tallied with answers during the interview.
 The overall score is based on average of his self assessment score (20 Points) & Interview score (40The overall score is based on average of his self assessment score (20 Points) & Interview score (40
Points) evaluating the same attributes.Points) evaluating the same attributes.
 Cope with the isolation of self-employmentCope with the isolation of self-employment
 Exercise self-disciplineExercise self-discipline
 Work long hours under pressureWork long hours under pressure
 Learn from failuresLearn from failures
 Compete with self-imposed standardsCompete with self-imposed standards
 Take unpopular decisionsTake unpopular decisions
 Resist impetuous or emotional behaviourResist impetuous or emotional behaviour
 Take a balanced view of eventsTake a balanced view of events
 Tolerate uncertaintyTolerate uncertainty
 Accept adviceAccept advice
 Demonstrate financial viabilityDemonstrate financial viability
 Demonstrate support of familyDemonstrate support of family
 Demonstrate enterprise backgroundDemonstrate enterprise background
 Demonstrate profit motivationDemonstrate profit motivation
 Demonstrate sales orientationDemonstrate sales orientation
 Demonstrate receptiveness towards XYZ Company's trainingDemonstrate receptiveness towards XYZ Company's training
 Demonstrate growth orientationDemonstrate growth orientation
 Demonstrate a favourable attitude towards task delegationDemonstrate a favourable attitude towards task delegation
 Take the long-term viewTake the long-term view
 Demonstrate belief that individuals can 'make things happenDemonstrate belief that individuals can 'make things happen
Franchising ImplementationFranchising Implementation
ProgrammeProgramme
 Level 2 Process – DevelopmentLevel 2 Process – Development
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
Evaluation &
Selection
Process
Franchisee
Value
Proposition
Franchisee ROI
Franchisee
Policies
Induction
Training
Takeoff Manual
Franchisee
Takeoff
Process
Enquiry
Management &
Conversion
Franchisee
Performance
Management
New Product
Launches
Promotion &
Other Support
Partner
Relationship
Management
Franchising Policy - TerritoryFranchising Policy - Territory
 To ensure smooth working, a designated territory will beTo ensure smooth working, a designated territory will be
assigned to each Franchisee.assigned to each Franchisee.
 The Franchisee will be given an option to sell to the generalThe Franchisee will be given an option to sell to the general
public and / or corporate sector.public and / or corporate sector.
 The Franchisee who has been given an option to sell toThe Franchisee who has been given an option to sell to
corporate sector only will not sell to the general public andcorporate sector only will not sell to the general public and
vice versa.vice versa.
 Under no circumstances will a Franchisee sell to corporateUnder no circumstances will a Franchisee sell to corporate
customers, who are directly served by the Franchisorcustomers, who are directly served by the Franchisor’s sales’s sales
team.team.
 The Franchisor reserves the right to redefine any territoryThe Franchisor reserves the right to redefine any territory
and appoint another Franchisee in the redefined territory.and appoint another Franchisee in the redefined territory.
Franchising Policy - ExclusivityFranchising Policy - Exclusivity
 The Franchisee shall not deal in any competing productThe Franchisee shall not deal in any competing product
directly or indirectly and the Franchisee shall not promote anydirectly or indirectly and the Franchisee shall not promote any
competing product directly or indirectly.competing product directly or indirectly.
 The Franchisee shall not share its physical assets with anyThe Franchisee shall not share its physical assets with any
other competing product.other competing product.
 The Franchisee shall not share competing products, on which itThe Franchisee shall not share competing products, on which it
has direct or indirect control.has direct or indirect control.
 The Franchisee shall not enter into any partnership or have aThe Franchisee shall not enter into any partnership or have a
sister Franchisee/ concern for distributing competingsister Franchisee/ concern for distributing competing
products.products.
 The Franchisee shall not disclose the names and addresses toThe Franchisee shall not disclose the names and addresses to
any person outside his firm or Franchisor and especially toany person outside his firm or Franchisor and especially to
any competitor of the Franchisor.any competitor of the Franchisor.
Franchising Policy – Information VisibilityFranchising Policy – Information Visibility
 The Franchisee will provide complete and full visibility ofThe Franchisee will provide complete and full visibility of
information on the market, customers, consumption patterns,information on the market, customers, consumption patterns,
competitor products, accounting policies and records in all hiscompetitor products, accounting policies and records in all his
premises to Franchisor, Franchisorpremises to Franchisor, Franchisor’s managers and executives.’s managers and executives.
 The Franchisor reserves the right to audit the franchiseeThe Franchisor reserves the right to audit the franchisee’s’s
book of accounts, for which full co-operation shall bebook of accounts, for which full co-operation shall be
extended by the Franchisee.extended by the Franchisee.
 The Franchisor reserves the right to audit the salesThe Franchisor reserves the right to audit the sales
management system, performance management system andmanagement system, performance management system and
other system by Franchisorother system by Franchisor’s staff/ third party without prior’s staff/ third party without prior
permission or notice.permission or notice.
Franchising Policy- MerchandisingFranchising Policy- Merchandising
 Keep the minimum required retail space dedicated to theKeep the minimum required retail space dedicated to the
Franchisor.Franchisor.
 Keep the communication and office infrastructure (computer,Keep the communication and office infrastructure (computer,
internet, office etc) in working condition as per the norms setinternet, office etc) in working condition as per the norms set
by the Franchisor to meet the desired service level.by the Franchisor to meet the desired service level.
 A detailed merchandising norms booklet will be distributed forA detailed merchandising norms booklet will be distributed for
proper adherence. The Franchisee needs to ensure that allproper adherence. The Franchisee needs to ensure that all
merchandising norms like placement of glow-sign, flex,merchandising norms like placement of glow-sign, flex,
banners, poster etc. are followed.banners, poster etc. are followed.
 No competitorNo competitor’s product information, merchandising etc.’s product information, merchandising etc.
should be present in the franchisee’s outlet.should be present in the franchisee’s outlet.
 The merchandising norms of the FranchisorThe merchandising norms of the Franchisor’s partners need to’s partners need to
be followed. However preference will be given to thebe followed. However preference will be given to the
Franchisor’s merchandising norms incase of limited spaceFranchisor’s merchandising norms incase of limited space
resources etc.resources etc.
Franchising Policy- Min. Sales &Franchising Policy- Min. Sales &
PerformancePerformance
 The contract is based upon the Franchisee commitments of aThe contract is based upon the Franchisee commitments of a
minimum quantity of sales per quarter and per year.minimum quantity of sales per quarter and per year.
 Different schemes of franchisees will be given a minimum target forDifferent schemes of franchisees will be given a minimum target for
sales per quarter and per year.sales per quarter and per year.
 The Franchisee will work towards business growth every year.The Franchisee will work towards business growth every year.
 Through mutual discussions franchisees will arrive at growth targetsThrough mutual discussions franchisees will arrive at growth targets
for sales in their territory. It will be the obligation of the Franchiseefor sales in their territory. It will be the obligation of the Franchisee
to exceed these targets.to exceed these targets.
 The Franchisee will appoint executives to promote the sale of theThe Franchisee will appoint executives to promote the sale of the
FranchisorFranchisor’s products as per the norms set up by the Franchisor.’s products as per the norms set up by the Franchisor.
These norms are determined by Scheme of Franchisee opted for.These norms are determined by Scheme of Franchisee opted for.
 The Franchisee will strictly implement the sales management systemThe Franchisee will strictly implement the sales management system
adopted by the Franchisor.adopted by the Franchisor.
 The Franchisee will share the promotional cost incurred for theThe Franchisee will share the promotional cost incurred for the
promotion in his territory, except for the launch promotion.promotion in his territory, except for the launch promotion.
 The Franchisee shall maintain the confidentiality of the transactionsThe Franchisee shall maintain the confidentiality of the transactions
carried out with the Franchisor.carried out with the Franchisor.
 Performance against franchiseePerformance against franchisee’s commitments of sale will be’s commitments of sale will be
reviewed every year and will be one of the criteria for renewal ofreviewed every year and will be one of the criteria for renewal of
contracts for Franchisee relationship.contracts for Franchisee relationship.
Franchising ImplementationFranchising Implementation
ProgrammeProgramme
 Level 2 Process – DevelopmentLevel 2 Process – Development
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
Evaluation &
Selection
Process
Franchisee
Value
Proposition
Franchisee ROI
Franchisee
Policies
Induction
Training
Takeoff Manual
Franchisee
Takeoff
Process
Enquiry
Management &
Conversion
Franchisee
Performance
Management
New Product
Launches
Promotion &
Other Support
Partner
Relationship
Management
Franchisee Takeoff ManualFranchisee Takeoff Manual
 Primary Objectives of Franchisee Takeoff ManualPrimary Objectives of Franchisee Takeoff Manual
 Provide a thoroughly detailed description of your businessProvide a thoroughly detailed description of your business
 Written clearly and simply enough to be usableWritten clearly and simply enough to be usable
 Franchise Operations Manual contains the followingFranchise Operations Manual contains the following
 Pre-openingPre-opening
 Franchisees responsibilitiesFranchisees responsibilities
 Franchise administrationFranchise administration
 Franchise marketing and promotionFranchise marketing and promotion
 Franchise operations.Franchise operations.
Take Off Manual Chapter IndexTake Off Manual Chapter Index
1. Pre-Opening Time Table1. Pre-Opening Time Table
2. Recruiting for XYZ Company Franchise2. Recruiting for XYZ Company Franchise
3. Start-up Expenses & Managing Finance3. Start-up Expenses & Managing Finance
4. Start Selling on Day 1 : Software Products4. Start Selling on Day 1 : Software Products
5. Start Prospecting on Day 1 : Corporate Products5. Start Prospecting on Day 1 : Corporate Products
6. Franchise Orientation Training6. Franchise Orientation Training
7. Managing & Reviewing Performance from Day 17. Managing & Reviewing Performance from Day 1
8. Planning for a Launch8. Planning for a Launch
9. Branding & Doing up the Outlet9. Branding & Doing up the Outlet
Sample Topic – Pre Opening PlanSample Topic – Pre Opening Plan
 Week OneWeek One
 Congratulations!!Congratulations!! Sign Franchise AgreementSign Franchise Agreement
 SupportSupport :: XYZ Company HOLIDAYS ManagementXYZ Company HOLIDAYS Management
 Sign separate agreement with other partners like SuvidhaSign separate agreement with other partners like Suvidha
 SupportSupport : Franchisee Business Development Manager (FBDM): Franchisee Business Development Manager (FBDM)

 Register for the NextRegister for the Next “XYZ Company HOLIDAYS Orientation Training”“XYZ Company HOLIDAYS Orientation Training” See TrainingSee Training XYZ CompanyXYZ Company
HOLIDAYSHOLIDAYS
 SupportSupport : FBDM: FBDM
 Start looking for office space/contact a commercial broker according to XYZ Company guidelinesStart looking for office space/contact a commercial broker according to XYZ Company guidelines
(in case the space is not available)(in case the space is not available)
 Apply for a Company Registration (in case company is not registered)Apply for a Company Registration (in case company is not registered)
 Apply for PAN, Service Tax , TDS & other registrationsApply for PAN, Service Tax , TDS & other registrations
 Week TwoWeek Two
 Insure All Licensing and Code Requirement Have Been MetInsure All Licensing and Code Requirement Have Been Met
 Start Interviewing Potential StaffStart Interviewing Potential Staff
 Support provided by FBDM for recruiting Corporate Sales ExecutiveSupport provided by FBDM for recruiting Corporate Sales Executive
 Week ThreeWeek Three
 Shortlist & Finalize Office Space OptionsShortlist & Finalize Office Space Options
 DiscussionDiscussion : Franchisee Business Development Manager (FBDM): Franchisee Business Development Manager (FBDM)
 Shortlist & Finalize Corporate Sales ExecutiveShortlist & Finalize Corporate Sales Executive
 DiscussionDiscussion : Franchisee Business Development Manager (FBDM): Franchisee Business Development Manager (FBDM)
 Shortlist & Finalize Counter StaffShortlist & Finalize Counter Staff
 Week FourWeek Four
 Find all necessary AccountingFind all necessary Accounting
 Sign Lease/ Acquire Office SpaceSign Lease/ Acquire Office Space
 Give offer letter to staffGive offer letter to staff
 Order for Communications Hardware Office InfrastructureOrder for Communications Hardware Office Infrastructure
 Guidelines provided by FOEGuidelines provided by FOE
Sample Topic – Pre Opening PlanSample Topic – Pre Opening Plan
 Week FiveWeek Five
 Order Telephone and InternetOrder Telephone and Internet
 Open Company Bank Accounts (in case not opened )Open Company Bank Accounts (in case not opened )
 Order Exterior Signage, Merchandising, Brochure & Branding SignageOrder Exterior Signage, Merchandising, Brochure & Branding Signage
 Support : FOESupport : FOE
 Order Business Cards & Email IDOrder Business Cards & Email ID
 Support : FOESupport : FOE
 Week SixWeek Six
 Install all Necessary Hardware/Software on Computer SystemInstall all Necessary Hardware/Software on Computer System
 Install all Necessary Software on Computer SystemInstall all Necessary Software on Computer System
 Support : FBDM /FOESupport : FBDM /FOE
 Set up Credit Card Processing AccountsSet up Credit Card Processing Accounts
 Prepare an Opening Launch PlanPrepare an Opening Launch Plan
 Support : FBDMSupport : FBDM
 Week SevenWeek Seven
 Order all Necessary Office SuppliesOrder all Necessary Office Supplies
 Ensure that all the staff is recruited & ready to joinEnsure that all the staff is recruited & ready to join
 Register for training & initial orientation for Corporate Sales ExecutiveRegister for training & initial orientation for Corporate Sales Executive
 Support : FOESupport : FOE
 Conduct Training for Counter Staff using the Train the Trainer ModuleConduct Training for Counter Staff using the Train the Trainer Module
 Support : FOESupport : FOE
 Week EightWeek Eight
 Begin Networking and establish Referral AccountsBegin Networking and establish Referral Accounts
 Support : FBDMSupport : FBDM
 Freeze Launch PlanFreeze Launch Plan
 Support : FBDMSupport : FBDM
 Start talking to vendorsStart talking to vendors
 Week 9Week 9
 Conduct First Staff MeetingConduct First Staff Meeting
 Ensure that all office interiors, signage, marketing collateral have been fixedEnsure that all office interiors, signage, marketing collateral have been fixed
 Ensure that business cards , email & other necessary documents have arrivedEnsure that business cards , email & other necessary documents have arrived
 Week 10Week 10
 Open for BusinessOpen for Business
 Execute Launch PlanExecute Launch Plan
Franchising ImplementationFranchising Implementation
ProgrammeProgramme
 Level 2 Process – DevelopmentLevel 2 Process – Development
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
Evaluation &
Selection
Process
Franchisee
Value
Proposition
Franchisee ROI
Franchisee
Policies
Induction
Training
Takeoff Manual
Franchisee
Takeoff
Process
Enquiry
Management &
Conversion
Franchisee
Performance
Management
New Product
Launches
Promotion &
Other Support
Partner
Relationship
Management
Forecast:
Plan:
Control:
Follow Up,
Review,
Report:
Variance
What needs to
be done?
How do
we do it?
Who does it?
Has it been
done?
What are we
doing
about it ?
Performance Management SystemPerformance Management System
FlowFlow
Franchisee PerformanceFranchisee Performance
ManagementManagement
Forecast Plan Control Report
Manager
Regional
Franchisee
FCSE
Route plan
Territory
Sales Target
FCSE Target
FCSE Weekly
Score Card
FCSE
Monthly
Score Card
Franchisee
Monthly
Score Card
Franchisee
Quarterly
Score Card
Review
Franchisee
Sales Target
Channel
Manager
Review
Review
Channel Mgr
Quarterly
Score CardChannel Mgr
Monthly
Score Card
Channel
Sales Target
Franchisee
Weeklyy
Score Card
Review
Franchisee
Mgr Weekly
Score Card
Review
Review
Review
Review
Channel
Weekly
Score Card
Review
Review
Review
Franchisee
Annual ROI
Analysis
Franchisee
Mgr Monthly
Score Card
Franchisee
Mgr Quart
Score Card
Franchisee ScorecardFranchisee Scorecard
Week :
Retail Sales Rs.
Sales- Domestic
Economy
Sales- Rail & Bus
Tickets
Rs.
Franchisee Name:
Sales- Domestic
Deluxe
Rs.
Rs.
Franchisee Daily Weekly Sales & Operations Report
KPI Wed Thur FriMon Tues
11 Enquiry Converted No.
9
Number of
Enquiries
No.
Sat RemarksWeekly Plan
12
Enquiry Response
TAT-Head Office
Hours
8
6
Sales- Domestic
Super Deluxe
Rs.
7
Sales-
International
Rs.
Rs.
1
3
2
Sales- Others
Sales- Air Tickets
4
5
Weekly Actual
Rs.
Sun
Franchising ImplementationFranchising Implementation
ProgrammeProgramme
 Level 2 Process – DevelopmentLevel 2 Process – Development
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
Evaluation &
Selection
Process
Franchisee
Value
Proposition
Franchisee ROI
Franchisee
Policies
Induction
Training
Takeoff Manual
Franchisee
Takeoff
Process
Enquiry
Management &
Conversion
Franchisee
Performance
Management
New Product
Launches
Promotion &
Other Support
Partner
Relationship
Management
Franchising ProgrammeFranchising Programme
Implementation: PhasesImplementation: Phases
Sustained StrategySustained StrategyStrategic DirectionStrategic Direction
Strategic
Guidelines
Strategic
Guidelines
StrategyStrategy
Stage
Output
Institutionalization
of the process
Institutionalization
of the process
AS-IS Analysis and
Defining of Strategy
AS-IS Analysis and
Defining of Strategy
Development of
solution and
testing
Development of
solution and
testing
Implementation of
solution across all
units
Implementation of
solution across all
units
Activity
ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition
We are
here
Contact UsContact Us
 Sarvajeet ChandraSarvajeet Chandra
+91 9920803060,+91 9920803060,sarvajeet@theadiva.insarvajeet@theadiva.in,,
sarvajeetchandra@sarvajeetchandra@gmail.comgmail.com
www.mastersungroup.comwww.mastersungroup.com

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Franchising Strategy Execution Programme

  • 1. Franchising Strategy &Franchising Strategy & Execution ProgrammeExecution Programme Snapshot of Methodology with some aspects ofSnapshot of Methodology with some aspects of programme explained in Detailprogramme explained in Detail
  • 2. Franchising ProgrammeFranchising Programme Implementation: PhasesImplementation: Phases Sustained StrategySustained StrategyStrategic DirectionStrategic Direction Strategic Guidelines Strategic Guidelines StrategyStrategy Stage Output Institutionalization of the process Institutionalization of the process AS-IS Analysis and Defining of Strategy AS-IS Analysis and Defining of Strategy Development of solution and testing Development of solution and testing Implementation of solution across all units Implementation of solution across all units Activity ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition We are here
  • 3. Franchisee Management ProcessFranchisee Management Process  Level 2 Process – DefinitionLevel 2 Process – Definition ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition Product Portfolio Channel Strategy Market Classification Opportunity Promotion
  • 4. Franchising ImplementationFranchising Implementation ProgrammeProgramme  Level 2 Process – DevelopmentLevel 2 Process – Development ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition Evaluation & Selection Process Franchisee Value Proposition Franchisee ROI Franchisee Policies Induction Training Takeoff Manual Franchisee Takeoff Process Enquiry Management & Conversion Franchisee Performance Management New Product Launches Promotion & Other Support Partner Relationship Management
  • 5. Franchising ImplementationFranchising Implementation Programme ExampleProgramme Example  Level 2 Process – DevelopmentLevel 2 Process – Development ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition Evaluation & Selection Process Franchisee Value Proposition Franchisee ROI Franchisee Policies Induction Training Takeoff Manual Franchisee Takeoff Process Enquiry Management & Conversion Franchisee Performance Management New Product Launches Promotion & Other Support Partner Relationship Management
  • 6. Successful FranchiseeSuccessful Franchisee  A successful XYZ Company Franchisee can be defined asA successful XYZ Company Franchisee can be defined as someone who meets the following three criteria:someone who meets the following three criteria:  Maximizes the profit potential of their business.Maximizes the profit potential of their business. Part of thisPart of this requires building strong sales team since institutional sales is arequires building strong sales team since institutional sales is a critical part of our business. A XYZ Company Franchisee alsocritical part of our business. A XYZ Company Franchisee also needs to control their business costs, since travel is a low marginneeds to control their business costs, since travel is a low margin business.business.  Ensures all customers have a great experience every time.Ensures all customers have a great experience every time. TheThe long-term profitability of a XYZ Company Franchiseelong-term profitability of a XYZ Company Franchisee’s business’s business and the goodwill of the franchise brand both depend on building aand the goodwill of the franchise brand both depend on building a base of loyal, satisfied repeat customers.base of loyal, satisfied repeat customers.  Comfortable adopting the role of XYZ Company Franchisee.Comfortable adopting the role of XYZ Company Franchisee. ThisThis means the person will participate constructively in the franchisemeans the person will participate constructively in the franchise program, attend meetings and engage with other XYZ Companyprogram, attend meetings and engage with other XYZ Company Franchisees and the XYZ Company team.Franchisees and the XYZ Company team.
  • 7. The Four UThe Four U’s of Unsuitable Franchisee’s of Unsuitable Franchisee  XYZ CompanyXYZ Company’s selection procedures and criteria should weed’s selection procedures and criteria should weed out XYZ Company Franchisees with theout XYZ Company Franchisees with the 4 U’s4 U’s i.e. franchiseesi.e. franchisees who arewho are  Under-preparedUnder-prepared  Under-capitalizedUnder-capitalized  Unsuited temperamentallyUnsuited temperamentally  HavingHaving Unrealistic expectationsUnrealistic expectations of what running a business wasof what running a business was really likereally like
  • 8. Lead through Email Lead Through Phone Lead to XYZ Company’s Office Lead through Referral Lead Management System System Generated Enquiry Form Sent Investment Capability Above 1.5 Lakh Phone Call to Access Willingness Suitable & Willing Proceed To Site Evaluation Process Report on Lead Funnel Form Filled Closed In LMS Closed in LMS N Y Y N Y N Suitable Y N Pre-SelectionPre-Selection LeadLead ManagementManagement ProcessProcess
  • 9. Enquiry & Application FormEnquiry & Application Form  This asks candidates detailed questions relating to their family situation, backgroundThis asks candidates detailed questions relating to their family situation, background experience, intentions about the business and financial capability. The enquiry formexperience, intentions about the business and financial capability. The enquiry form produces a detailed report on the candidateproduces a detailed report on the candidate  providing an overview of their initial suitabilityproviding an overview of their initial suitability  as well as alerting the XYZ Company to anyas well as alerting the XYZ Company to any “red flags” which deserve closer attention.“red flags” which deserve closer attention.  Some of the Key Information Sourced isSome of the Key Information Sourced is  Current Monthly IncomeCurrent Monthly Income  Maximum Investment in XYZ Company FranchiseeMaximum Investment in XYZ Company Franchisee  Current Profession & DesignationCurrent Profession & Designation  How soon can you start if selectedHow soon can you start if selected  Population of your city/townPopulation of your city/town  Tell us about your business experienceTell us about your business experience  Tell us about your educational qualifications or skillsTell us about your educational qualifications or skills  Tell us why you are interested in becoming a XYZ Company Franchisee?Tell us why you are interested in becoming a XYZ Company Franchisee?  How did you hear about XYZ Company?How did you hear about XYZ Company?  Do you have secondary income from to cover your financial needs during a start up period?Do you have secondary income from to cover your financial needs during a start up period?  Do you have others who will PARTNER with you in the business? Who are they?Do you have others who will PARTNER with you in the business? Who are they?  Please mention educational background and current income of PARTNERS?Please mention educational background and current income of PARTNERS?  When do you anticipate you would want to launch you new business?When do you anticipate you would want to launch you new business?  Do you have Regional space available? How many square feet? Whether your own /lease /rent?Do you have Regional space available? How many square feet? Whether your own /lease /rent?  TERRITORY YOU DESIRE: Please describe the geographical location where you would like aTERRITORY YOU DESIRE: Please describe the geographical location where you would like a franchise? If in a City with above 5 Lakhs people, mention specific areas in the City you arefranchise? If in a City with above 5 Lakhs people, mention specific areas in the City you are interested ininterested in
  • 10. Triangulation Selection ProcessTriangulation Selection Process  Selection uses a process known as "triangulation". This involvesSelection uses a process known as "triangulation". This involves seeking at least three sources of information about aseeking at least three sources of information about a candidate. Scientists often use triangulation in their researchcandidate. Scientists often use triangulation in their research to check the validity of their conclusions. They do this byto check the validity of their conclusions. They do this by seeking information on a problem from three different angles.seeking information on a problem from three different angles. If the feedback is consistent they know they are in the rightIf the feedback is consistent they know they are in the right track.track.  Check 1Check 1 : A Detailed Application Form: A Detailed Application Form  Check 2Check 2 : Site Visit & Observations. (40 Points): Site Visit & Observations. (40 Points)  Check 3Check 3 : Structured Behavioural Assessment based on Interview: Structured Behavioural Assessment based on Interview & Self-Assessment Questionnaire of the candidate (60 Points& Self-Assessment Questionnaire of the candidate (60 Points
  • 11. Site Visit & Observations (40 Points)Site Visit & Observations (40 Points)  This Check is based on actual site visit and observations. This is based on evidence rather than just personal bias or gut feel.This Check is based on actual site visit and observations. This is based on evidence rather than just personal bias or gut feel. Another method of gaining good information on a candidate is to talk with references and people who know the candidateAnother method of gaining good information on a candidate is to talk with references and people who know the candidate well. A copy of Site Visit Assessment is attached in Annexure 2. The Maximum Score in Site Assessment is 40 Pointswell. A copy of Site Visit Assessment is attached in Annexure 2. The Maximum Score in Site Assessment is 40 Points  Some of the key things assessed in a site visit are:Some of the key things assessed in a site visit are:  Territory SuitabilityTerritory Suitability  Size Potential of Franchisee TerritorySize Potential of Franchisee Territory  Presence of Big Travel Agent/ Company in NeighbourhoodPresence of Big Travel Agent/ Company in Neighbourhood  Location SuitabilityLocation Suitability  Regional Space LocationRegional Space Location  Regional Space FrontageRegional Space Frontage  Regional Shop OwnershipRegional Shop Ownership  Financial Health & Provisions of FranchiseeFinancial Health & Provisions of Franchisee  Current Assets OwnedCurrent Assets Owned  Provision for Working CapitalProvision for Working Capital  Secondary Source of IncomeSecondary Source of Income  Relevant Professional SkillsRelevant Professional Skills  Sales ExperienceSales Experience  Current Personal and Professional NetworkCurrent Personal and Professional Network  Handling of TeamHandling of Team  Comfort with IT, Computers & InternetComfort with IT, Computers & Internet  Suitable BackgroundSuitable Background  Age Group of FranchiseeAge Group of Franchisee  Educational background of the FranchiseeEducational background of the Franchisee  Self Employment/Business ExperienceSelf Employment/Business Experience  Company Structure / Partnership structureCompany Structure / Partnership structure  Market Reputation/ Reference CheckMarket Reputation/ Reference Check  Positive & Progressive AttitudePositive & Progressive Attitude  Willingness to focus on Corporate SalesWillingness to focus on Corporate Sales  Attitude towards business: Opportunistic, Transactional, Relationship, Extended EnterpriseAttitude towards business: Opportunistic, Transactional, Relationship, Extended Enterprise  Fitness with the vision: Poor, Somewhat Aligned, Aligned, Ahead of timeFitness with the vision: Poor, Somewhat Aligned, Aligned, Ahead of time
  • 12. Structured Behavioural Interview &Structured Behavioural Interview & Candidate Self-Assessment (60 Points)Candidate Self-Assessment (60 Points)  This Final Check should be based on a structured behavioural interview and observations of a candidateThis Final Check should be based on a structured behavioural interview and observations of a candidate based on evidence rather than just personal bias or gut feel. This information can then be quantifiedbased on evidence rather than just personal bias or gut feel. This information can then be quantified using a rating scale which defines what low, average and high behaviours look like in practice. (This typeusing a rating scale which defines what low, average and high behaviours look like in practice. (This type of rating scale is called a Behavioural Anchored Rating Scale or BARS and has been shown by research toof rating scale is called a Behavioural Anchored Rating Scale or BARS and has been shown by research to be the most accurate way of assessing people).be the most accurate way of assessing people).  The candidate needs to be assessed for profiled during the interview stage on the followingThe candidate needs to be assessed for profiled during the interview stage on the following psychographic criteria. He needs to be administered a self assessment test which is attached inpsychographic criteria. He needs to be administered a self assessment test which is attached in Annexure 2. His self assessment is tallied with answers during the interview.Annexure 2. His self assessment is tallied with answers during the interview.  The overall score is based on average of his self assessment score (20 Points) & Interview score (40The overall score is based on average of his self assessment score (20 Points) & Interview score (40 Points) evaluating the same attributes.Points) evaluating the same attributes.  Cope with the isolation of self-employmentCope with the isolation of self-employment  Exercise self-disciplineExercise self-discipline  Work long hours under pressureWork long hours under pressure  Learn from failuresLearn from failures  Compete with self-imposed standardsCompete with self-imposed standards  Take unpopular decisionsTake unpopular decisions  Resist impetuous or emotional behaviourResist impetuous or emotional behaviour  Take a balanced view of eventsTake a balanced view of events  Tolerate uncertaintyTolerate uncertainty  Accept adviceAccept advice  Demonstrate financial viabilityDemonstrate financial viability  Demonstrate support of familyDemonstrate support of family  Demonstrate enterprise backgroundDemonstrate enterprise background  Demonstrate profit motivationDemonstrate profit motivation  Demonstrate sales orientationDemonstrate sales orientation  Demonstrate receptiveness towards XYZ Company's trainingDemonstrate receptiveness towards XYZ Company's training  Demonstrate growth orientationDemonstrate growth orientation  Demonstrate a favourable attitude towards task delegationDemonstrate a favourable attitude towards task delegation  Take the long-term viewTake the long-term view  Demonstrate belief that individuals can 'make things happenDemonstrate belief that individuals can 'make things happen
  • 13. Franchising ImplementationFranchising Implementation ProgrammeProgramme  Level 2 Process – DevelopmentLevel 2 Process – Development ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition Evaluation & Selection Process Franchisee Value Proposition Franchisee ROI Franchisee Policies Induction Training Takeoff Manual Franchisee Takeoff Process Enquiry Management & Conversion Franchisee Performance Management New Product Launches Promotion & Other Support Partner Relationship Management
  • 14. Franchising Policy - TerritoryFranchising Policy - Territory  To ensure smooth working, a designated territory will beTo ensure smooth working, a designated territory will be assigned to each Franchisee.assigned to each Franchisee.  The Franchisee will be given an option to sell to the generalThe Franchisee will be given an option to sell to the general public and / or corporate sector.public and / or corporate sector.  The Franchisee who has been given an option to sell toThe Franchisee who has been given an option to sell to corporate sector only will not sell to the general public andcorporate sector only will not sell to the general public and vice versa.vice versa.  Under no circumstances will a Franchisee sell to corporateUnder no circumstances will a Franchisee sell to corporate customers, who are directly served by the Franchisorcustomers, who are directly served by the Franchisor’s sales’s sales team.team.  The Franchisor reserves the right to redefine any territoryThe Franchisor reserves the right to redefine any territory and appoint another Franchisee in the redefined territory.and appoint another Franchisee in the redefined territory.
  • 15. Franchising Policy - ExclusivityFranchising Policy - Exclusivity  The Franchisee shall not deal in any competing productThe Franchisee shall not deal in any competing product directly or indirectly and the Franchisee shall not promote anydirectly or indirectly and the Franchisee shall not promote any competing product directly or indirectly.competing product directly or indirectly.  The Franchisee shall not share its physical assets with anyThe Franchisee shall not share its physical assets with any other competing product.other competing product.  The Franchisee shall not share competing products, on which itThe Franchisee shall not share competing products, on which it has direct or indirect control.has direct or indirect control.  The Franchisee shall not enter into any partnership or have aThe Franchisee shall not enter into any partnership or have a sister Franchisee/ concern for distributing competingsister Franchisee/ concern for distributing competing products.products.  The Franchisee shall not disclose the names and addresses toThe Franchisee shall not disclose the names and addresses to any person outside his firm or Franchisor and especially toany person outside his firm or Franchisor and especially to any competitor of the Franchisor.any competitor of the Franchisor.
  • 16. Franchising Policy – Information VisibilityFranchising Policy – Information Visibility  The Franchisee will provide complete and full visibility ofThe Franchisee will provide complete and full visibility of information on the market, customers, consumption patterns,information on the market, customers, consumption patterns, competitor products, accounting policies and records in all hiscompetitor products, accounting policies and records in all his premises to Franchisor, Franchisorpremises to Franchisor, Franchisor’s managers and executives.’s managers and executives.  The Franchisor reserves the right to audit the franchiseeThe Franchisor reserves the right to audit the franchisee’s’s book of accounts, for which full co-operation shall bebook of accounts, for which full co-operation shall be extended by the Franchisee.extended by the Franchisee.  The Franchisor reserves the right to audit the salesThe Franchisor reserves the right to audit the sales management system, performance management system andmanagement system, performance management system and other system by Franchisorother system by Franchisor’s staff/ third party without prior’s staff/ third party without prior permission or notice.permission or notice.
  • 17. Franchising Policy- MerchandisingFranchising Policy- Merchandising  Keep the minimum required retail space dedicated to theKeep the minimum required retail space dedicated to the Franchisor.Franchisor.  Keep the communication and office infrastructure (computer,Keep the communication and office infrastructure (computer, internet, office etc) in working condition as per the norms setinternet, office etc) in working condition as per the norms set by the Franchisor to meet the desired service level.by the Franchisor to meet the desired service level.  A detailed merchandising norms booklet will be distributed forA detailed merchandising norms booklet will be distributed for proper adherence. The Franchisee needs to ensure that allproper adherence. The Franchisee needs to ensure that all merchandising norms like placement of glow-sign, flex,merchandising norms like placement of glow-sign, flex, banners, poster etc. are followed.banners, poster etc. are followed.  No competitorNo competitor’s product information, merchandising etc.’s product information, merchandising etc. should be present in the franchisee’s outlet.should be present in the franchisee’s outlet.  The merchandising norms of the FranchisorThe merchandising norms of the Franchisor’s partners need to’s partners need to be followed. However preference will be given to thebe followed. However preference will be given to the Franchisor’s merchandising norms incase of limited spaceFranchisor’s merchandising norms incase of limited space resources etc.resources etc.
  • 18. Franchising Policy- Min. Sales &Franchising Policy- Min. Sales & PerformancePerformance  The contract is based upon the Franchisee commitments of aThe contract is based upon the Franchisee commitments of a minimum quantity of sales per quarter and per year.minimum quantity of sales per quarter and per year.  Different schemes of franchisees will be given a minimum target forDifferent schemes of franchisees will be given a minimum target for sales per quarter and per year.sales per quarter and per year.  The Franchisee will work towards business growth every year.The Franchisee will work towards business growth every year.  Through mutual discussions franchisees will arrive at growth targetsThrough mutual discussions franchisees will arrive at growth targets for sales in their territory. It will be the obligation of the Franchiseefor sales in their territory. It will be the obligation of the Franchisee to exceed these targets.to exceed these targets.  The Franchisee will appoint executives to promote the sale of theThe Franchisee will appoint executives to promote the sale of the FranchisorFranchisor’s products as per the norms set up by the Franchisor.’s products as per the norms set up by the Franchisor. These norms are determined by Scheme of Franchisee opted for.These norms are determined by Scheme of Franchisee opted for.  The Franchisee will strictly implement the sales management systemThe Franchisee will strictly implement the sales management system adopted by the Franchisor.adopted by the Franchisor.  The Franchisee will share the promotional cost incurred for theThe Franchisee will share the promotional cost incurred for the promotion in his territory, except for the launch promotion.promotion in his territory, except for the launch promotion.  The Franchisee shall maintain the confidentiality of the transactionsThe Franchisee shall maintain the confidentiality of the transactions carried out with the Franchisor.carried out with the Franchisor.  Performance against franchiseePerformance against franchisee’s commitments of sale will be’s commitments of sale will be reviewed every year and will be one of the criteria for renewal ofreviewed every year and will be one of the criteria for renewal of contracts for Franchisee relationship.contracts for Franchisee relationship.
  • 19. Franchising ImplementationFranchising Implementation ProgrammeProgramme  Level 2 Process – DevelopmentLevel 2 Process – Development ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition Evaluation & Selection Process Franchisee Value Proposition Franchisee ROI Franchisee Policies Induction Training Takeoff Manual Franchisee Takeoff Process Enquiry Management & Conversion Franchisee Performance Management New Product Launches Promotion & Other Support Partner Relationship Management
  • 20. Franchisee Takeoff ManualFranchisee Takeoff Manual  Primary Objectives of Franchisee Takeoff ManualPrimary Objectives of Franchisee Takeoff Manual  Provide a thoroughly detailed description of your businessProvide a thoroughly detailed description of your business  Written clearly and simply enough to be usableWritten clearly and simply enough to be usable  Franchise Operations Manual contains the followingFranchise Operations Manual contains the following  Pre-openingPre-opening  Franchisees responsibilitiesFranchisees responsibilities  Franchise administrationFranchise administration  Franchise marketing and promotionFranchise marketing and promotion  Franchise operations.Franchise operations.
  • 21. Take Off Manual Chapter IndexTake Off Manual Chapter Index 1. Pre-Opening Time Table1. Pre-Opening Time Table 2. Recruiting for XYZ Company Franchise2. Recruiting for XYZ Company Franchise 3. Start-up Expenses & Managing Finance3. Start-up Expenses & Managing Finance 4. Start Selling on Day 1 : Software Products4. Start Selling on Day 1 : Software Products 5. Start Prospecting on Day 1 : Corporate Products5. Start Prospecting on Day 1 : Corporate Products 6. Franchise Orientation Training6. Franchise Orientation Training 7. Managing & Reviewing Performance from Day 17. Managing & Reviewing Performance from Day 1 8. Planning for a Launch8. Planning for a Launch 9. Branding & Doing up the Outlet9. Branding & Doing up the Outlet
  • 22. Sample Topic – Pre Opening PlanSample Topic – Pre Opening Plan  Week OneWeek One  Congratulations!!Congratulations!! Sign Franchise AgreementSign Franchise Agreement  SupportSupport :: XYZ Company HOLIDAYS ManagementXYZ Company HOLIDAYS Management  Sign separate agreement with other partners like SuvidhaSign separate agreement with other partners like Suvidha  SupportSupport : Franchisee Business Development Manager (FBDM): Franchisee Business Development Manager (FBDM)   Register for the NextRegister for the Next “XYZ Company HOLIDAYS Orientation Training”“XYZ Company HOLIDAYS Orientation Training” See TrainingSee Training XYZ CompanyXYZ Company HOLIDAYSHOLIDAYS  SupportSupport : FBDM: FBDM  Start looking for office space/contact a commercial broker according to XYZ Company guidelinesStart looking for office space/contact a commercial broker according to XYZ Company guidelines (in case the space is not available)(in case the space is not available)  Apply for a Company Registration (in case company is not registered)Apply for a Company Registration (in case company is not registered)  Apply for PAN, Service Tax , TDS & other registrationsApply for PAN, Service Tax , TDS & other registrations  Week TwoWeek Two  Insure All Licensing and Code Requirement Have Been MetInsure All Licensing and Code Requirement Have Been Met  Start Interviewing Potential StaffStart Interviewing Potential Staff  Support provided by FBDM for recruiting Corporate Sales ExecutiveSupport provided by FBDM for recruiting Corporate Sales Executive  Week ThreeWeek Three  Shortlist & Finalize Office Space OptionsShortlist & Finalize Office Space Options  DiscussionDiscussion : Franchisee Business Development Manager (FBDM): Franchisee Business Development Manager (FBDM)  Shortlist & Finalize Corporate Sales ExecutiveShortlist & Finalize Corporate Sales Executive  DiscussionDiscussion : Franchisee Business Development Manager (FBDM): Franchisee Business Development Manager (FBDM)  Shortlist & Finalize Counter StaffShortlist & Finalize Counter Staff  Week FourWeek Four  Find all necessary AccountingFind all necessary Accounting  Sign Lease/ Acquire Office SpaceSign Lease/ Acquire Office Space  Give offer letter to staffGive offer letter to staff  Order for Communications Hardware Office InfrastructureOrder for Communications Hardware Office Infrastructure  Guidelines provided by FOEGuidelines provided by FOE
  • 23. Sample Topic – Pre Opening PlanSample Topic – Pre Opening Plan  Week FiveWeek Five  Order Telephone and InternetOrder Telephone and Internet  Open Company Bank Accounts (in case not opened )Open Company Bank Accounts (in case not opened )  Order Exterior Signage, Merchandising, Brochure & Branding SignageOrder Exterior Signage, Merchandising, Brochure & Branding Signage  Support : FOESupport : FOE  Order Business Cards & Email IDOrder Business Cards & Email ID  Support : FOESupport : FOE  Week SixWeek Six  Install all Necessary Hardware/Software on Computer SystemInstall all Necessary Hardware/Software on Computer System  Install all Necessary Software on Computer SystemInstall all Necessary Software on Computer System  Support : FBDM /FOESupport : FBDM /FOE  Set up Credit Card Processing AccountsSet up Credit Card Processing Accounts  Prepare an Opening Launch PlanPrepare an Opening Launch Plan  Support : FBDMSupport : FBDM  Week SevenWeek Seven  Order all Necessary Office SuppliesOrder all Necessary Office Supplies  Ensure that all the staff is recruited & ready to joinEnsure that all the staff is recruited & ready to join  Register for training & initial orientation for Corporate Sales ExecutiveRegister for training & initial orientation for Corporate Sales Executive  Support : FOESupport : FOE  Conduct Training for Counter Staff using the Train the Trainer ModuleConduct Training for Counter Staff using the Train the Trainer Module  Support : FOESupport : FOE  Week EightWeek Eight  Begin Networking and establish Referral AccountsBegin Networking and establish Referral Accounts  Support : FBDMSupport : FBDM  Freeze Launch PlanFreeze Launch Plan  Support : FBDMSupport : FBDM  Start talking to vendorsStart talking to vendors  Week 9Week 9  Conduct First Staff MeetingConduct First Staff Meeting  Ensure that all office interiors, signage, marketing collateral have been fixedEnsure that all office interiors, signage, marketing collateral have been fixed  Ensure that business cards , email & other necessary documents have arrivedEnsure that business cards , email & other necessary documents have arrived  Week 10Week 10  Open for BusinessOpen for Business  Execute Launch PlanExecute Launch Plan
  • 24. Franchising ImplementationFranchising Implementation ProgrammeProgramme  Level 2 Process – DevelopmentLevel 2 Process – Development ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition Evaluation & Selection Process Franchisee Value Proposition Franchisee ROI Franchisee Policies Induction Training Takeoff Manual Franchisee Takeoff Process Enquiry Management & Conversion Franchisee Performance Management New Product Launches Promotion & Other Support Partner Relationship Management
  • 25. Forecast: Plan: Control: Follow Up, Review, Report: Variance What needs to be done? How do we do it? Who does it? Has it been done? What are we doing about it ? Performance Management SystemPerformance Management System FlowFlow
  • 26. Franchisee PerformanceFranchisee Performance ManagementManagement Forecast Plan Control Report Manager Regional Franchisee FCSE Route plan Territory Sales Target FCSE Target FCSE Weekly Score Card FCSE Monthly Score Card Franchisee Monthly Score Card Franchisee Quarterly Score Card Review Franchisee Sales Target Channel Manager Review Review Channel Mgr Quarterly Score CardChannel Mgr Monthly Score Card Channel Sales Target Franchisee Weeklyy Score Card Review Franchisee Mgr Weekly Score Card Review Review Review Review Channel Weekly Score Card Review Review Review Franchisee Annual ROI Analysis Franchisee Mgr Monthly Score Card Franchisee Mgr Quart Score Card
  • 27. Franchisee ScorecardFranchisee Scorecard Week : Retail Sales Rs. Sales- Domestic Economy Sales- Rail & Bus Tickets Rs. Franchisee Name: Sales- Domestic Deluxe Rs. Rs. Franchisee Daily Weekly Sales & Operations Report KPI Wed Thur FriMon Tues 11 Enquiry Converted No. 9 Number of Enquiries No. Sat RemarksWeekly Plan 12 Enquiry Response TAT-Head Office Hours 8 6 Sales- Domestic Super Deluxe Rs. 7 Sales- International Rs. Rs. 1 3 2 Sales- Others Sales- Air Tickets 4 5 Weekly Actual Rs. Sun
  • 28. Franchising ImplementationFranchising Implementation ProgrammeProgramme  Level 2 Process – DevelopmentLevel 2 Process – Development ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition Evaluation & Selection Process Franchisee Value Proposition Franchisee ROI Franchisee Policies Induction Training Takeoff Manual Franchisee Takeoff Process Enquiry Management & Conversion Franchisee Performance Management New Product Launches Promotion & Other Support Partner Relationship Management
  • 29. Franchising ProgrammeFranchising Programme Implementation: PhasesImplementation: Phases Sustained StrategySustained StrategyStrategic DirectionStrategic Direction Strategic Guidelines Strategic Guidelines StrategyStrategy Stage Output Institutionalization of the process Institutionalization of the process AS-IS Analysis and Defining of Strategy AS-IS Analysis and Defining of Strategy Development of solution and testing Development of solution and testing Implementation of solution across all units Implementation of solution across all units Activity ConsolidationConsolidationConsolidationConsolidationRolloutRolloutRolloutRolloutDevelopmentDevelopmentDevelopmentDevelopmentDefinitionDefinitionDefinitionDefinition We are here
  • 30. Contact UsContact Us  Sarvajeet ChandraSarvajeet Chandra +91 9920803060,+91 9920803060,sarvajeet@theadiva.insarvajeet@theadiva.in,, sarvajeetchandra@sarvajeetchandra@gmail.comgmail.com www.mastersungroup.comwww.mastersungroup.com