Franchise Simply Members

  • Home
  • Module One
    • Unit 1
    • Unit 2
    • Unit 3
    • Unit 4
    • Unit 5
    • Unit 6
    • Unit 7
    • Unit 8
    • Unit 9
    • Unit 10
    • Unit 11
  • Module Two
    • Unit 12
    • Unit 13
    • Unit 14
    • Unit 15
    • Unit 16
    • Unit 17
    • Unit 18
    • Unit 19
    • Unit 20
    • Unit 21
  • Module Three
    • Unit 22
    • Unit 23
    • Unit 24
    • Unit 25
    • Unit 26
    • Unit 27
    • Unit 28
    • Unit 29
  • Franchise Radio Shows
  • Workshop Videos

Module Two

Define The Business Elements Of Your Franchise

Module Two

Money and Budgets

Territories

Franchisee Support

Corporate Structure

Business Plan

Introduction to Module Two

Unit Twelve

The Flow of Money, Budgets and Fees

Guides

G6: Profit and Loss and Cash Flow Budgets

Supporting Material

SM12a: Franchise Radio Show 29, How to Maximize Your Profits – Accounting for Franchisees, with Peter Knight

SM12b. Video of Rob McAdam from McAdam Siemon discussing budgets and Cash Flow (discussion on money management starts at about 47 minutes)

SM12c: Video of Brian Keen discussing the calculation of Fees

SM12d: Video of Brian Keen discussing the commercial aspects of a franchise agreement

SM12e: SA Government Tips on Cash Flow

SM12f. Examples of spread sheets put together for different kinds of businesses

Unit Thirteen

Planning Territories

Supporting Material

SM13a. Video of Brian Keen Discussing Territories

SM13b. Radio Show 9 Planning your Franchise Sites, Peter Buckingham Founder Spectrum Analysis

SM13c: Radio Show 19, How to Grow your Franchise or Business Network with Strategic Network Planning, Peter Buckingham Founder Spectrum Analysis

SM13d. Spectrum Analysis, 5 Tips to Effective Territory Planning

SM13e. Spectrum Analysis, 9 Tips to Great Site Selection

Unit Fourteen

Supporting Your Franchisees and the Communication Plan

Guides

G7: Communications Plan

Supporting Material

SM14a. Radio Show 5 – Helping Franchisors and Franchisees Create Profitable Partnerships with Greg Nathan, Founder Franchise Relationships Institute

SM14b: Franchise Radio Show 34, High Performance Franchisees, How to Help Your Franchisees Achieve Optimum Performance, with Elizabeth Gillam

SM14c: Franchise Radio Show 42, Programing Franchise Success, with Damian McConnell

SM14d: Franchise Radio Show 47, How To Overcome Your Personal Limitations, with Paul Blackburn

SM14e: Profitable Partnerships. Greg Nathan, 2000

SM14f: Franchise Relationships Tool Kit, Greg Nathan

Unit Fifteen

Corporate Structure and Intellectual Property Protection

Supporting Material

SM15a, Video of Rob McAdam from McAdam Siemon discussing corporate structures (the first 47 minutes of the video)

SM15b: Franchise Radio Show 37, Minimizing Your Tax And Protecting Your Assets, With Warren Black

SM15c: Franchise Radio Show 33, Are You Eligible For R&D Tax Incentives, Peter Crewe-Brown

SM15d. Radio Show 65 - Don’t be Robbed of Your Most Precious Commodity – Protecting your business asset – brand protection with Christopher Mittigo from Legal Vision.

HEADING

Unit Sixteen

Franchisor Business Plan

Guides

G8: Business Plan

Some Terminology

Words are used in so many different ways in the franchise industry. Some are legally defined and others just in general use. Before beginning it is useful to clarify the way we use terms and why.

Legal definitions

Legally, through the Franchise Code of Conduct and Franchise Agreement Template, the
following terms are set.

Franchise System includes a business system in which a franchisor grants a franchise to a franchisee

Franchised Business is one franchise outlet

The Manual or Operations Manual is the franchisee operations manual and includes everything operational needed to run the franchised business, however crafted (audiovisual, graphic, text, software etc.)

Franchise Documentation includes the Operations Manual and all the legal documents and anything else needed to conduct the Franchised Business

A more extensive list of more commonly used terms is included in the appendices.

Franchise Simply definitions

I have extended these terms, however, because I consider it essential that you deal with both sides of a Franchise System, the franchised business operated by your franchisees and your franchisor business.

So…

The Franchise System is the whole franchise group consisting of the franchisor business and the franchised businesses operated by your franchisees.

The franchisee outlet or franchised business will have:

a. Franchisee Documentation which includes:

i. The legal documents (Franchise Agreement and Disclosure Document
and any associated legal docs)

ii. The Franchisee Operations Manual which includes everything operational needed to run the franchised business, however crafted (audiovisual, graphic, text, software etc.)

b. The Franchised Business (goodwill etc.)

The franchisor business will have:

a. Franchisor Documentation which includes:

i. The legal documents (the franchisor is party to the franchise agreement)
and any other legal documents which make up the brand etc.

b. The Franchisor Operations Manual which includes everything operational
needed to run the franchised business, however crafted (audio-visual, graphic,
text, software etc.)The Franchisor Business (goodwill etc.)

Introduction to Module Two

Build the elements that make up your franchise structure

This Module is all about developing the detail that underlies your Franchise System. In Module One you put together the big picture of your franchise group in place so you know:

  • What your ideal customer will look like
  • The way they want your product delivered to meet their fears and desires
  • The broad characteristics your ideal franchisee needs so they can deliver your
    product to your ideal customer
  • The broad business structure of your franchise group and Franchise System

This next step in Module Two is to work out the details of the elements that will make that franchise big picture work. So you will need to look at:

  • The details of how the money will work in all sides of the group
  • The budgets for both franchisor and franchisee and any intermediate layers
  • How these budgets will determine the fee structure
  • Whether you will use territories and if so how these will be apportioned
  • How your Intellectual Property will be protected
  • Your franchise corporate structure
  • Your communication values and principles for the franchise group as a whole and a Communication and Support Plan
  • How you will deal with training
  • Anything else you might need to address in detail

Once you have these details, it will pay to develop a brief Business Plan for your Franchisor Business to set the goals and parameters for the development of the franchise group over the next three to five years.

And the details you are developing here will go into the Franchise Documentation you
prepare in Module Three.

Download PDF Version

Copyright © 2025 · Franchise Simply Members · Log in