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Economies of scale are all well and good, but the best franchises have the best business format and the knowledge to teach someone how to replicate the brand is far more important.
As an experienced investor myself the biggest issue is the calibre and integrity of the current owner, once happy with that the valuation is genuinely secondary but always based on a multiple of todays profit and not what the future might hold.
Most franchisors use similar widely available CRM suites. Personally I use Daylite for mac, whilst my colleagues in the franchise support section use ACT! for Windows. Both work in similar ways and do the job well.
That question is a job best answered in a financial model.
You'll know what your average outlet could produce in terms of profit and what human and financial resource is required from you to achieve it. In franchising the financial and human resource is provided by the franchisee to get the...
A retail franchise for £15k - I don't think so??? I can only assume that the total investment is significantly higher? As for 10% thats the industry norm across all sectors and as a retailer your margin can come from stock, services provided and royalty amongst other many other things. The shop...
Hi GIGI. I've made a living over the last 20 years or so advising some of the countries most successful franchising entrepreneurs. If you haven't already taken the plunge by all means contact me and I'll be happy to share my experience with you.
I'm enjoying reading this type of post! As a franchise specialist myself there are a few inaccuracies in previous posts. e.g. "then leave them to it." good franchisors dont ever leave their franchisees to it, they regularly keep in touch and coach them on best practice. Also royalties are not...
The majority of franchised businesses do not invoice on behalf of their franchisees unless they are contracting with a national organisation on behalf of the network. A bonafide franchise operation is a replica of an already trading business which means franchisees create their own invoices from...