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Franchising your brand

Franchise Consulting

There are many ways in which two businesses join hands and reap mutual benefits. Franchising is one such form of association. Other forms are mergers and acquisitions, amalgamations, strategic alliances, partnerships, etc. In a franchising model, a franchisor grants licence or rights to a franchisee to do business on the franchisor’s behalf based on an agreed set of terms and conditions. For SMEs & Large enterprises this model helps them to reach out to new and larger markets. Franchising helps to reduce operational costs, focus on core competencies, and penetrate fast into existing and new markets.

Franchising has proven to be a very effective business arrangement when it comes to exploring new markets, especially, for global expansion. The benefits are localization, risk optimization, technology-sharing, reduced capital burden, a synergy of mutual experience and expertise, larger market share, better market penetration, vertical and horizontal integration, etc. You know the benefits but you are also aware that there are difficulties when to set out to franchise your business.

Challenges in the franchise route

Especially because of the risk benefits, franchising sounds like the ultimate solution of business expansion to reach any market in the world. The veterans of the business world and experienced franchise business consultants will advocate some caution and preparedness here. Derived from our experience of delivering franchise consulting services, some of the challenges you might encounter in franchising your brand are highlighted below.

Choosing the right strategy

The decision to adopt the franchise route is driven by strategic business reasons. For some, it could be to expand business in the existing market while for some other it could be to better address customer experience by working closely in the supply chain. Not crafting the right strategy is the number one reason why many businesses fail in the franchise mode even if they are successful with their home-run business model. An experienced franchise development consultant would first ask – why franchise? You need to have strong reasons in answering – why should I franchise my business?

Shortcomings in business plan

A franchise arrangement works as long as both the parties profit as intended. Any financial miscalculation and the franchise arrangement begins to become a burden for both. Preparing a detailed business plan is as important in starting a franchise arrangement as it is in the case of starting a new business. If the numbers are not happy in the books, the franchise arrangement also cannot be happy.

Operational opacity and mismanagement

A common reason for the fallout of franchisor-franchisee relationships is the lack of operational transparency. This happens when operational standards and expectations are not clearly established and communicated. Two people can agree to grow a tree that will bear fruits later but if the responsibilities and accountabilities are not clearly set and agreed upon the tree will never grow to give the desired fruits.

Poor monitoring and reporting

Are the business operations being run as intended? This is a major headache in any franchise model especially in the backdrop of a technological platform that fails to meet the required standards of monitoring and reporting. To keep a tab on business operations and fulfilment of the terms of performance as per the agreed routes and standards, technology-aided reporting and monitoring is a vital requirement. Also, it reduces the chances of miscommunication and misunderstandings by limiting the scope of human activities in the process.

Attracting and selecting the right franchisee partner(s)

In franchising your brand, an important task for you will be finding a qualified and responsible franchisee. If a brand is well-known in a market, it may not be difficult attracting franchise interest. But the challenge would be determining who best fits into the role as a franchisee partner. Considering a brand is new or does not carry any significant popularity then, a bit more of challenges are involved in this process which we can overcome with a well-defined strategy and roadmap.

Drafting the legal framework

Franchise businesses are usually governed by legal contracts or agreements. For entrepreneurs and businessmen who are new to the franchise model, it can be difficult for them to ascertain where to begin addressing this aspect. These franchise contracts involve legal technicalities and require a professional touch. If done casually, there can be loopholes which in the future can become a source of contentions.

How YRC can help? A glimpse

From strategy formulation to crafting the operational roadmap, YRC stays by your side as a seasoned franchise business consultant. In franchise consulting services, we help you define the key strategies, prepare the financial forecasts, assist in franchise partner search, draft the franchise legal agreements, design and develop SOPs, and define the audit processes. In a nutshell, YRC can help you franchise your business in a planned and professional manner.

Our team of franchise experts will work closely with your team to better understand your business requirements and the decision to go the franchise route for growth and expansion. We will help you formulate an effective expansion strategy. This is also where you get a plausible business case to a fundamental question – why should I franchise my business?

We realize the importance of a sound business plan for any business project – whether it is a startup or a franchise arrangement. Without commercial interests being carefully assessed, a franchise deal will soon turn into a loss-making project. In preparing a business plan, our franchise development consultants cover the assessment of capital and working expenditure requirements, pricing and costing, turnover and revenue projections and statements, ROI and break-even analysis, etc.

As a retail consulting company, SOP development is one of our core competencies. We offer SOP consulting and development services for franchise businesses. Here, our focus is on establishing routines, consistency of standards, better growth systems, and eliminating loss of productivity. We expect to deliver the many virtues of SOP.

We understand the pain points of running a franchise model. Whether you are an international pizza chain brand or a sports accessories company, if you are not keeping a tab on the ground realities of your franchise business operations, you could very well be putting your brand at a stake. Our robust audit processes are aimed at ensuring that the established operational standards are followed without a miss and how these could be further improved.

Our approach initiates with defining the roadmap first. This will include strategy for scanning potential partners in the market and crafting stringent guidelines for background check. It is the duty of a franchise development consultant to cover this aspect.

A franchise agreement is a legal framework that defines the scope of duties and responsibilities between a franchisor and franchisee in carrying out a franchise business. At YRC, these agreements are drafted and vetted by legal experts and aimed at safeguarding the legal grounds of their clients.


We are a boutique retail consulting firm. To know more about our franchise consulting services or if you have any query for our team of franchise consultants, drop us a message and we will get back to you.

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