Image and System
The clearly defined image and system are what we call the interllectual property. This includes the trade name, the method of operation and the way in which the various elements of the business come together to make up the franchise formula.None of the elements of the package need to be individually secret. What matters is the way that the franchisors have combined them to create a successful franchise system.
Naturally, the trade mark or name has to be owned by the franchisor as he is licensing others to use it, but don’t worry if your name is not yet well known. That will not stop franchisees from joining you. After all, even McDonald’s and Marks & Spencer started with only a single outlet.
All the elements of the package from design and layout of the premises, through marketing campaigns, to accounting and administration will be detailed in the franchise manual, and it is the system in the manual that the franchisee agrees to operate.
Proven Format
Pilot operations prove that the concept works and it is the evidence of their success that will convince your first franchisees that they should choose your franchise. Even if you have run company-owned branches for years, you must be aware that things will change when you franchise and you must be prepared to run pilot units at arm’s length. Read full article.