GROUP PROJECT- STEP 4

TRAINING TO THE
FRANCHISEES

PEOPLE IN YOUR BUSINESS AND

ESTIMATED STARTING CAPITAL
A. PEOPLE IN THE BUSINESS
OF A FRANSHISEE
 The franchisor provides training
service to franchisees:
– People in your business are:
• You as the owner
• Your partners as co-ownership
• Employees and staff
• Consultants
Franchisee as the owner of his
business
 Duties:
– Develop business ideas, goals, business strategic
plans.
– Organize and encourage all the staff to carry out the
strategic plans.
– Ensure the achievement of business objectives.
 Consider your business skills carefully. Decide
on what you can do and what you can not do
(due to lack of time or skills).
 For what you can not do, you need the other
staff to do that.
 Consult other businesses about how they
organize their business and staff.
Franchisee’ s partners
 Share your responsibilities and authority
 Have clear duties for each partner in the
business to reduce any conflicts.
 EX: partner 1 is responsible for sales, partner 2
– purchasing, 3- business administration.
 Information exchange must be clear and
honest. Business failure is often caused by
conflicts among partners.
 Written agreements must be done among the
partners that clarify each partner’s
responsibilities and commitments.
FRANCHISEE’S STAFF
 Review your business idea and list all
the necessary work and jobs.
 Decide on jobs you are not able to do.
 For each job, describe skills and
requirements needed for your staff.
 Decide on how many employees you
need for each job and all the jobs.
 For each job, write the job description of
each position so that:
– The Staff know clearly what they must do.
– You can evaluate the staff performances.
Franchisee’s staff
 Use the job description to recruit
and select your staff
 Conduct an interview to ensure you
hire right people for right jobs with
right skills.
Consultants
 Information is very important to all
businesses. You need consultants
because you can not know all the
aspects related to your business.
 Identify experts who can help you do
your business now and in future.
 Consultants may be accountants, bank
carders, lawyers, government officials,
good friends
 Refer to trade publications, directories to
find these people.
B. ESTIMATED STARTING CAPITAL FOR
THE FRANCHISEE
 Be sure that:
– After the market research and analysis, you
decide to start your new profitable business.
– You know how many people needed in your
business and their responsibilities.
 Starting capital is the money necessary
to pay for land, factories, facilities,
equipment, advertising, consulting fees,
power, water supply and telephone
expenses. We can divide expenses into
two kinds: investment capital and
current capital.
Franchisee’s Investment capital
 This is money you put in your business. It takes
you long time to recover this investment
money. Investment capital is used for several
parts: factories, buildings, machine, and
facilities.
 Factories and buildings: whether it is the whole
factory or a small office you work in.
 Be sure that you have decided on the location
already.
 Decide on one of the following things:
– Build totally new factories or offices (long time)
– Buy the existing factories or offices
– Rent existing factories or offices
– Use your house for your business.
Franchisee’s Working capital
 Buy materials and goods
 Sales promotion
 Wage payments
 Rental fees
 Insurance fees
 Power electricity, stationary,
transportation, licenses,..
Discuss in your own group
 Make decisions on:
– How many staffs are needed to run
your franchise business project?
Write down their job descriptions and
qualification.
– How many management positions you
need? Write down job descriptions of
these managers.
– Establish an organizational structure
for the franchisee.