Franchise audit
The franchise audit is a process that assesses whether a business concept is suitable for being developed into a franchise. Here is a structured method in several steps to carry out this audit:
1. Analysis of the business concept
- Description of the product or service: Evaluate the clarity and attractiveness of the proposed product or service.
- Market positioning: Identify the target market, customer segments and competition.
- Added value: Determine what distinguishes the concept from other players in the market.
2. Economic viability
- Business model: Examine current profitability, profit margins and associated costs.
- Forecast financial plan: Develop a financial plan including projections over several years.
- Initial investment: Evaluate the entry costs for future franchisees.
3. Support and training
- Operational systems: Analyze existing processes and procedures to ensure quality and consistency.
- Training program: Evaluate the content and duration of the training offered to franchisees.
- Ongoing support: Determine the level of operational, marketing and technical support offered to franchisees.
4. Legal aspects
- Franchise contract: Assess the clarity and compliance of the contract with current laws (in particular the Doubin law in France).
- Intellectual property protection: Check copyrights, trademarks and patents.
- Regulatory compliance: Ensure compliance with industry-specific standards and regulations.
5. Development strategy
- Development plan: Develop a strategy on how and where to develop the franchise network.
- Franchisee selection criteria: Determine the skills and profiles sought in future franchisees.
6. Evaluation of experience and reputation
- Company history: Examine the company's track record and reputation in the market.
- Opinions of current franchisees: Collect testimonials and feedback from franchisees to identify strengths and weaknesses.
7. Pilot test
- Setting up a pilot unit: If possible, open one or more pilot establishments to evaluate the concept of franchising in real conditions.
- Performance evaluation: Measure the success of the pilots in terms of turnover, customer satisfaction, and compliance with operational procedures.
Conclusion
- Audit report: Write a detailed report that summarizes the results of the audit, highlighting the strengths and weaknesses of the concept and the actions needed to improve the franchise proposal.
- Recommendations: Propose concrete actions for the implementation of a solid franchise model, accompanied by deadlines and performance indicators.
This audit method thus makes it possible to determine whether a concept is sufficiently solid to succeed and grow as a franchise.