Franchise feasibility study designing the franchise system
50
FOR THE POTENTIAL FRANCHISOR With Maria Dinah A. Dimacali
-
Upload
carlyn-villareal -
Category
Business
-
view
1.099 -
download
0
Transcript of Franchise feasibility study designing the franchise system
FOR THE POTENTIAL FRANCHISOR
With Maria Dinah A. Dimacali
Feasibility Study
An analysis and evaluation of a proposed project to determine if it (1) is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable.
Feasibility studies are almost always conducted where large sums are at stake.
Also called feasibility analysis.
The Underlying Business
The Underlying Business
The Underlying Business
The Underlying Business
Products and Services
Products and Services
Products and Services
The Systematization of the Business
The Systematization of the Business
The Systematization of the Business
The Systematization of the Business
The Systematization of the Business
The Support System
The Support System
The Support System
The Support System
The Support System
The Support System
The Support System
The Support System
The Support System
The Support System
The Fees
The Potential for the Expansions
The Potential for the Expansions
The Potential for the Expansions
The Potential for the Expansions
Sometimes, success of one depends on the success of others…
FEASIBLE, WORKABLE AND PROFITABLE IN THE LONG RUN…
With Maria Dinah A. Dimacali
Management Competency
Ensure whether the existing management (the franchisee) has adequate capabilities and staff to manage the growth of the franchise system
FRANCHISEES are appointed to become the integral part of the franchise system
Competitors’ Analysis
Competition on both at the franchise level and also at the consumer level
Conflict Management
Anticipate probable source of conflicts between the franchisor and the franchisees and devise strategies to resolve them
Economic Impact
Impact of investments, cash flows and profits of both the franchisor and the franchisees
Financing Requirements
Whether the kind of investment the franchise system requires shall be fulfilled by a potential franchisee
Alternate sources of finance
Exit Strategies
An exit clause
Modality to terminate the agreement
Marketing Strategy
Management Information System
Business Policy
Training and Programme Calendar
Monitoring Mechanism
Support Mechanism
A franchisor should carefully study the system and develop a franchise system that may provide an
answer to most of the questions that may arise during the implementation of franchising strategy.
AN INDICATIVE LIST… NOT AN EXHAUSTIVE LIST…
