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Cartoon and Article Highlights Need for Franchising Advice

May 22, 2012 by Callum Floyd
Franchising Advice highlighted by the adjacent cartoon penned by Alex Hallatt appeared in the (June 2012) edition of NZ Business Magazine. The edition contains some different franchising stories and includes a great article by Simon Lord recounting a  fictional version of a common conversation held (over the years) with very naive and disgruntled franchisees.

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Bottom line, the cartoon and article underline the need for:

A: Prospective franchisees to conduct in-depth due diligence, involving engaging specialist franchising legal and accounting advice. And yes, this will cost money.

B: Prospective franchisors to properly determine the efficacy of franchising their respective business’s, which will involve engaging a competent management consultant that specialises in franchising. From there, assuming franchising is appropriate, and this is confirmed through structured analysis and modelling, further development work needs to be completed before then briefing a lawyer for a franchise agreement.

Many aspects of a Franchising Programme need Development

In turn, many other aspects of a comprehensive franchising programme need development; such as, franchisee and franchisor manuals and training systems, recruitment infrastructure, and franchise executive training.

The proper investigation of franchising – from a prospective franchisor and franchisee perspective – involves time, money and the engagement of appropriate outside expertise.  If this view were more widely practised the above cartoon would have less relevance – and there’d be happier investors on both sides of the fence.

Franchising Advice Available From Franchize Consultants Ltd

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Category: Blog

About Callum Floyd

Our Managing Director, Dr Callum Floyd, served on the FANZ board in various roles for nearly a decade, and Franchize Consultants continues its long-term support of FANZ in any way it can. We’re strong believers in the value of FANZ’s firm codes of practice and ethics, and for this reason recommend our franchisor businesses consider FANZ membership.

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