On Friday 20th and Saturday 21st, Jan 2017 a very interesting exhibition took place, where we had the opportunity to visit not only big players as McDonalds and RE/MAX but also other well-established businesses looking to expand via franchising. In addition, there were plenty of conferences and workshops to learn about the procedures and tactics used in franchising.
Here is a short summary of all the useful notes to be considered from all the workshops and conferences that we took part in, for both the franchisor and the franchisee:
- Be realistic and not overambitious.
- Take legal advice from a franchise lawyer.
- Learn about the viability of the business you are about to embrace.
- Understand the context and the numbers related to franchise finances.
- Search for expert advice.
- If you are planning to borrow money for your franchise project, talk to more than one bank.
- Read carefully the franchise agreement.
- Franchising laws vary from one country to another and there are some that have none.
- Usually, franchise agreements tend to last 5 years, but there are exceptions.
- The initial fee usually covers training and additional equipment (for example banners).
- The monthly fee usually covers management and maintenance service plus a part for global marketing.
- Remember that to be a franchisee means you will have to maintain a minimum level of sales. There is usually a minimum performance clause in each agreement.
- To acquire a franchisee may take in between 6 weeks to 4 months.
- Do not rush through the process or you will end up with the wrong franchisee.
- There is no get rich quick scheme!
- Do not think that the franchisor will get the leads for you; they may help but is up to the franchisee to grow.
- Usually, to recover your investment as a franchisee may take up to 2 years, do not expect profits in the first year.
- Learn about the financial information for both franchisor and franchisee.
- It is always better to have a couple of meetings face to face.
- Be prepared and flexible when approaching a potential franchisee.
- Be aware of time differences.
- Follow a system. Make the system easy to learn for others.
- Invest in training creation.
- Know when it is time to stop holding hands. A franchisee is very similar to raising a child.
- The franchisor should train, coach, motivate and monitor. But do not suffocate the franchisee.
- Always protect your trademark at the earliest possible.
- Understand cultural differences.
- A franchisee candidate can be: an organization looking for diversification, a strong business leader looking for their own venture, an investor with strong management skills, and a company similar to the franchisor.
- Do not set up a lot of franchisees in a short period of time if you know that you will not handle them properly.
- Prepare in case things go wrong. If your franchisee fails you may be dragged to failure too.
- If possible became a member of a franchise association as BFA (British Franchise Association) or EFF (European Franchise Federation).
- To success in franchising align and embrace brand values.
- Visit the franchisor and the franchisee office.
- Listen to everyone’s ideas.
- Work with a tested system and implement new solutions when required.
- Recruit and develop quality people with problem-solving skills.
- Be aware of taxation practices related to franchising.
At this moment you may be asking yourself… Why would a translation company go to a Franchising exhibition?
There are two answers to this question.
The first answer is: because every company that wants to have franchisees requires translation services to expand their global scope.
Any company that would like to enter the European market require a trustable translation partner.
This will allow them to translate and localize legal documentation, marketing campaigns, and their websites in order to reach the desired locations. At Jensen Localization, we have 16 years of experience providing reliable, accurate and fast translation and localization services. If your company is willing to have franchisees all over Europe, get in touch not to be lost in translation.
The second answer is: that we are the first translation company to franchise our formula. We are a recognized trademark under the EU trademarks registry. We have extensive experience in the localization market. We have 3 offices that allowed us to gain experience in providing localization services. A central office in order to have the others running smoothly and focusing on translation as their main focus rather than IT, Administration and Marketing. If you would like to know more about being an ambassador of our company, contact us to schedule a visit to our office in Fuengirola, Spain.