Franchise offer documents

If you are selling the opportunity to use your brand and your business system, with the benefit of the support systems you offer, within the framework of a franchise agreement and initial and continuing fees, you will need a "prospectus".

Potential franchisees will want to know what business they can expect to do and how profitable it can be.

Since your business is already up and running, and since you will have already run a pilot scheme discrete from your own operation, you will have some facts on which to base your projections.

Good franchisors have to draw a fine balance between generating expectations which can be met, and giving franchisees targets which are so low that they do not need to fully exploit their business opportunities.

You shouldn’t oversell, nor undersell the business proposition. Pitching your offer is something which is should be done with a good market view in mind – matching the presentation of your offer to the norms of the franchise recruitment market – so experienced advice can be helpful. The British Franchise Association's franchisor seminars are a good source.

Go to step eight: Recruiting franchisees

 
 
  • Justin Holloway
    Prokill Professional Pest Prevention - Franchisee case study

    To launch a new business in an unknown sector on the cusp of a recession is naturally daunting and what you don't want to do is to make too many mistakes. After all, the two most precious commodities you have are time and money. The franchising model helps avoid costly mistakes and minimizes the learning curve.

    Read the full case study
 
 
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