The preparatory phase of a business plan relies on planning. inTRM services include a lot of analysis of the current situation and Marketing Plan Strategy and Objectives.
- Business trends analysis
- Market analysis
- Competitive analysis
- Market segmentation
- SWOT analysis
- Positioning - analyzing perceptions
There are many approaches to strategic planning but we apply a three-step process to it:
- Situation - evaluate the current situation and how it came about.
- Target - define goals and/or objectives (sometimes called ideal state)
- Path / Proposal - map a possible route to the goals/objectives
Franchisor Business Plan
Probably the most important aspect of developing any franchising program is the development of a franchise feasibility business plan. The franchisor needs to take the time midst all the anxiety and rush to carefully develop a franchise system that will result in success for both the franchisor and franchisees. A strong franchising system not properly planned or implemented generally will lead to failure and financial loss.
The Franchisor Feasibility Study
The very first step in the establishment of a franchisor feasibility study is to determine the feasibility of developing a potential or existing business into a franchise system. The feasibility study should contain that information in the following five areas which will help the franchisor make a "go or no-go" decision:
- Executive Summary
- Finance and Legal
AMBS uses its specialized knowledge and experience and makes sure that the plan made is feasible for the franchisor.
Management and operations
Large and small business firms, private and public organizations, and charitable associations all require a management process to lead, guide, and direct their work activities. Management is the process of planning, organizing, directing, and controlling the business.
The franchisor is a unique individual. In the beginning, the franchisor is usually a small business person often with
very limited or no franchising experience and generally the owner of a small business organization. The franchisor
has been a successful small business manager. The franchisor is now striving to become a corporate CEO. This
crossing of small and large business management is a unique property and function of the individual called a
The franchisor does not have enough talented people to carry out all the tasks and responsibilities associated with the franchising of the business. The franchisor must decide if they are going to develop a successful franchising organization that they will need to develop their management skills and talents and employ additional expert staff to carry out the functions and responsibilities of the franchising organization. AMBS supports the partner franchisors in Management and Operations, so that the Franchisor Company doesn’t require doing literally anything.
- Managerial Growth
- Leadership and Motivation
- Mystery Shopping
- Audits, Monitoring and Evaluation
The heartbeat of the business is found in managing the financial assets of the business. A major goal of any
company is to make a profit. If the franchisee is unable to make a profit, then both the franchisee and the
franchisor will not survive. Therefore both the franchisor and the franchisee want to make sure that the franchisee
generates a profit and increases their own personal wealth.
INTRM helps investigate all possible revenues and costs associated with the start-up and the continuous operation of both the franchisor and franchisee businesses. We have the awareness of the financial obligations that a franchisee has toward the franchisor. We understand and control the financial fees that must be paid to you as the franchisor.
INTRM works with you and helps you decide and finalize the following:
- Financial Fees
- Financial Records
- The Franchise Prospectus
The Franchise Manuals
INTRM shall create highly customized manuals that are extremely professional. The information contained in these
manuals shall help the franchisee take up the business from the day one. Every process related to the business
shall be outlined to the detailed description.
These manuals shall not only support your franchisees, but shall also help your parent business’s growth.
The manuals that would be produced by us are:
- Welcome Manual
- Pre Opening Procedures
- Grand Opening Manual
- Operational Procedure Manual
- Location and Design Manual
- Customer Relation Manual
- Personnel, Staff and Management Manual
- Reporting and Payment Manual
- Stock and Supplies Manual
- Advertising and Marketing Manual
- Accounting and Administration Manual
inTRM shall also help you execute the franchise Agreement.
INTRM takes the responsibility of franchise sales on behalf of the franchisor. It has a team of excellent sales professionals with commendable experience. They have good knowledge of the land, its culture, its demography, the socio economic environment and the typical mindset of the residents. This is the biggest benefit that you as a franchisor shall get by joining hands with INTRM. INTRM has a good quality database of the people from different segments of the society. These databases can be mailed or contacted personally and they shall potential the potential buyers to your franchise.
Here we mean supporting your franchisees. We are sure that without the initial hand-holding, your franchisees shall not be comfortable. We provide them with: * Introduction and Setup Support
- Recruitment and Training Support
- Pre Launch Support
- Launch Support
Continuous Ongoing Support
We at INTRM strongly believe that you are the masters of your business. A franchisee shall take some time to learn, understand and master this business. INTRM delivers continuous ongoing support to your franchisees and that’s how they stand strong to make your business more flourishing. You would appreciate that one satisfied partner shall bring us at least 5 more franchisees.
A new and exciting relationship exists today between the successful franchisee and successful franchisor. This relationship is centered on trust, ability to work together, and the desire to achieve common goals. This relationship has become interdependency and seeks to provide support for both the franchisee and franchisor in their business dealings. When learning how to ride a bicycle, we learn that there two major operations which are essential to its proper functioning:
- steering power
- pedal power.
We can ask the question which one is more important, the steering power or the pedal power. Upon further investigation it is apparent that both are important and both are interdependent. For the bicycle to properly function and go in the correct direction, or turn the right way, it is required that we use both the steering power and the pedal power to get where we want to go. The same is true with franchising. We could ask which one is more important, the franchisee or the franchisor. Both are equally important in the final success of the franchisor operation. INTRM shall help you maintain this relationship on a very long term basis. The major attributes to this are:
- Franchisee Motivation
- Conflict Resolutions
- Franchise Seminars and Conferences
Annual Meetings Training and Development
One of the most complex and multi-faceted challenges a franchisor faces is the training of three distinct important groups:
- (1) Headquarters' staff
- (2) Franchisees
- (3) Franchisee's staff
One of the main purposes of any training program is to prepare individuals to perform and handle the functions for which they are responsible. If either the franchisor and/or franchisee fail to provide adequate training, the new franchisee or employee will be forced by trial and error to perform their duties -- resulting in frequent lost time, poor quality, and lost products. It should also be important to recognize that training is not just for new employees. Training is a continuous process that is ongoing with existing staff members as well as providing technological updates for key employees concerning new products and/or services. Many staff members performances can be improved through additional training. Even as technology changes, training updates are important. Everybody has a stake in the advancement and development of personal skills and abilities.
INTRM shall support you with :
- Development a proper Training Department
- Staffing for the Training Department
- Pre Opening Training
- Grand opening Training
- Continuous Training
- In Store Training
The Franchisor Company or the Brand owners shall earn revenues in the following ways:
|S. No.||Revenue Heads||Amount|
|1.||Franchise Fees||Depends on the model|
|2.||Start-up kit||Depends on the materials and the bundle|
|3.||Royalty||A fixed ratio of the monthly collection|
|4.||Course Material||The franchisor supplies to the franchisee all course-ware and study material as a price generally marked up from the actual price. However, the franchisor must maintain that the price charged are reasonable and that the franchisees are not burdened with the extra cost. The price gain for the franchisor is due to the volume and bulkiness of the material at any later stage.|
|5.||Promotional Material||The franchisor supplies to the franchisee all course-ware and study material as a price generally marked up from the actual price. However, the franchisor must maintain that the price charged are reasonable and that the franchisees are not burdened with the extra cost. The price gain for the franchisor is due to the volume and bulkiness of the material at any later stage.|
|6.||Advertising||As per the industry trend, the franchisor releases the advertisements in the leading publishing dailies and bills its franchisees a sum equivalent to a fixed percentage of the revenue on a monthly basis. Another model suggests a fixed monthly cost per centre per month on a fixed advertising plan decided at the beginning of the session / year. An yet another model suggests a share charged from the franchisees based on the circulation share in the territory. In either cases, the franchise earns a good amount of money at a later stage once the critical mass is achieved.|
|7.||Online examination||A fixed amount is charged from every customer. At any later stage, the volume increases and amounts to a big revenue.|
|8.||Renewal fees (from renewal of franchise agreements)||This can be decided as per the model and the demand of the product and services.|
Roles and Responsibilities Defined
Broadly, the roles of INTRM and the partner franchisor company may be laid down as follows:
|Role definition||INTRM||Franchisor partner|
|Modeling to the franchise-ability||70%||30%|
|Enhancement of look and feel of the Head office||20%||80%|
|Admin staff at the Head office||10%||90%|
|Technical staff at the Head office||10%||90%|
|Master trainer at the Head office / Regional Offices||10%||90%|
|Sales staff for franchise sales||100%||--|
|Support staff for franchise sales||100%||--|
|Audit of accounts, marketing, sales, process and administration||100%||--|
|Cost of traveling both for sales and support (includes lodging and boarding of the sales and support staff)||--||100%|
|Cost of advertising for franchising (if any)||--||100%|
|All costs towards printing, consultation or any specialized services outside the scope of INTRM||--||100%|
|All costs towards conducting the trainings, seminars and conferences (the cost of venue, lodging, boarding, projector, screen, public address system, stay, breakfast, tea / snacks, lunch / dinner, or any such material distributed)||--||100%|
Amount payable to INTRM
Following amount shall be payable to INTRM against the services rendered by the agency to the franchisor company.
|S. No.||Professional fees||Details|
|1.||Consultancy fees for all initial work like assessment, modeling, financial model, control methods, know how, modeling, marketing collaterals, all manuals, franchise agreement (it’s an expert service), look and feel enhancement, franchise proposal, recruitment and training of the HO staff, strategy for sales, etc.||As per the need and extent of work.|
|2.||Share in franchise fees and the renewal fees against the sales being done for the franchisor company||Depends on industry, brand, existing presence, brand awareness and readiness for franchising.|
|3.||Share in monthly royalty against the support services on behalf of the franchisor company||Depends on industry, brand, existing presence, brand awareness and readiness for franchising.|