Do you have a business idea and want to turn it into a franchise business?
Do you want to transform your business into a franchising start–up?
Count on Soluzioni’s team for the following activities:
- Start up your brand
- Supervision on start up executed per se
- Different solutions for subsequent commercial development by SOLGEST program
The franchise is one of the few sectors able to withstand the crisis and aim to restart the economy of our country. In fact, in 2013 there was an encouraging + 0.5% growth in sales over 2012. For a company or a future entrepreneur, franchising is an extremely convenient sector: in fact, it allows a much rapider growth compared to direct expansion. In addition, borrowing costs are spread over all the affiliates that add with their contribution to the growth of the network. This system allows the network to achieve a diverse presence throughout the country.
If you have an idea of an interesting business or activity that works and want to offer it to other entrepreneurs, with Soluzioni you can start a successful project. Our franchise consulting business is guided by network development of enterprises throughout the country and internationally. Our team will support you in every phase of the start-up of your business franchise, providing you the keys to achieving the highest levels of performance and maintain them over time.
Check-up of your franchise startup
Only a few ideas or few entrepreneurial activities can be turned into a franchise network. In fact, it’s possible that some particular elements make a business difficult to adapt to the typical franchise replication formula. If you aim to figure out if your business idea or activity may become a successful franchise, take our test "check-up for franchise start-up"
How to create a franchise from scratch with Soluzioni
1. Create a franchise start-up Business Plan
Whether the activity involves a new restaurant, a laundry or a service agency, the preliminary analysis to be done should focus on the business. It is fundamental to evaluate the company's potential, both if it is already placed on the market or if it consists on a new business idea to be implemented.
The business plan defines the basic features of the future franchise start-up. It will deal with Market and Competitors Analysis, with the definition of marketing STRATEGY, plus it will examine feasibility, together with both Economic Forecast and the covers of investments. It comes with very peculiar and complex activities that shouldn’t be undervalued or approximately structured. Soluzioni offers a team of experts in marketing and economics to create a high quality business plan.
2. Defining entry fee and Royalty
With this step we are entering into what is properly the world of franchising. The entry Fee and Royalty are the basis of franchise agreements. In creating a start-up franchise, define what are the economic contributions from the future franchisee. It is important that the entry fee respects what the franchisor actually sells to the franchisee: it could be something intangible like an innovative idea or highly specialized know-how (possibly patented) or the strength of a brand already known and valued on the market. But it also could be something material, like a first goods facility, design and furnishing of an outlet, training courses, essential materials for a start-up business.
While quantifying the economic value of intangible elements is harder than defining the value of tangible ones, the weight of the entry fee could be easily determined. Soluzioni will support the franchisor at this stage with the utmost professionalism, suggesting the best solution for the franchisor but ensuring not to set a threshold too high to discourage potential franchisees.
By the same principle it will be established whether to fix the royalties or not. Some franchise companies prefer to avoid them in order to facilitate affiliation. Other ones simply postpone it to the second year of the contract, offering the chance to engage franchisees with their own business and then fixing it on the basis of sales. Others set a fixed fee.Soluzioni, thanks to its decades of experience in the field and on the basis of some previous analysis on feasibility can assess and advise the customer for the best possible solutio
3.Defining the franchise agreement
Soluzioni will collaborate with the best experts in drafting franchise agreements in compliance with the applicable law, currently Law 229 of 2004.
In the franchise agreement there are elements that must necessarily be indicated, such as the amount of the entry fee and other initial expenses and start-up, royalties, territory exclusivity, the know-how and operational manual provided by the franchisor, the conditions for renewal, termination, transfer and contract duration. Please visit our franchise section to learn more.
4. Identity and communication project
At this stage the customer, attended by marketing experts from Soluzioni, should define his own brand identity. These aspects are related to the company image comprehending name, logo, what is required by the activity, the image and style of the store (if provided), website, brochures and other communication materials. The visual identity is basic for any company, since it lets to achieve effective communication, increasing brand awareness thus supporting the recognition of the start-up franchise abroad.
5. Drawing up the operation manual and forms
Once having defined the management structure and the franchise start-up identity, and establishing how to communicate it and disperse it to future affiliates, it is important to commence a promotion policy aimed at developing the network.
- for the franchisor, because this is how he has the opportunity to define the working procedures and commercial strategies, ensuring a fair replica of that of the parent company business ;
- for the franchisee, because he has all the necessary information for achieving the targets and the tools required. For the individual franchisee, the operating manual is professional assistance available at any time
6. Establish the promotion strategy and business development of a franchise start-up
Once having defined the management structure and the franchise start-up identity, by fixing communication strategies, the focus will be spreading the new activity to potential and future affiliates, by using a peculiar promotion policy for the development of the network .
First of all the reference target must be defined. Obviously the core business will be the based on specific targets (for instance, for franchisors dedicated to beauty, it will aim at a female target, while for an automotive business it will be usually aimed at a male audience ).Then we determine the message to be conveyed to reach our target: the advantage of becoming franchisees, the innovation of the service proposed, the high earnings and so on.
Then, the channels to be used are established. In the field of franchising online portals and trade magazines are the most used. Over the years Soluzioni has built strong partnerships with the most visited portals (such as “Be The Boss.it” or “Aprireinfranchising.it”) and the two major magazines dedicated to the world of entrepreneurship like “Az Franchising” and “Millionaire”.Thanks to these partnerships Soluzioni can ensure its customers extremely advantageous conditions for advertising campaigns in these channels.
In addition, Soluzioni successfully manages its own portal, Soluzionifranchising.it entirely dedicated to the world of franchising. It has a wide selection of brands divided into categories and investment groups. In just a few years the website has climbed the Google SERP, positioning itself at the top for the main keywords related to the franchise, allowing brands present on it to get hundreds of inquiries from potential franchisees.
Another chance for promotion are major trade shows. For years Soluzioni has been the leader of the Salon del Franchising fair in Milan where, in its last edition, it occupied an exhibition area of over 140 square meters with more than 15 brands hosted. Like a real green island, it was visited by thousands of people, where our customers could gain high visibility for their franchise brand (thanks to specifically tailored packages).
Once the strategies are implemented, the franchise start-up is ready to be launched on the market.
The contacts made will be handled with our exclusive SOLGEST software, which guarantees high levels of contact-contract performance in development of the franchise network.