Franchisor's role in setting up shop

When it comes to setting up a business in the fast food industry, there is a flurry of factors to consider. While many ambitious entrepreneurs have been able to succeed at setting up a restaurant or store on their own, many others have failed miserably, losing money in the process. The franchising business model is one that provides added support from a franchisor - making the set up process much easier. It also affords the new franchisee the time to focus on other aspects of the business that need to be set in place before the store can be launched. The franchisor, generally handles the entire setup, with the help of reputable professionals, from start to finish, with the support of the new franchisee, of course.

Franchisor input

The franchisor ensures a store is trade-ready by arranging the following elements:

• Site location - the appropriate site, based on the location of other stores and trade radius restrictions is sourced
  
• Store plans - the development department assists with laying out the store according to the franchise's specifications to ensure the 'look and feel' of the brand is represented
  
• Shop fitment - the franchisor makes use of its providers to handle the full turnkey operation of a store, which is done according to the supplied store plans and a blueprint, with the brand's corporate identity (CI) in mind. These service providers are responsible for elements such as the wet works, signage, cabinet making, electrical components etc.
  
• Certification and licenses - once all shop elements have been fitted, the store needs to pass local authorities' health, fire and safety inspections. Only once all elements relating to health and safety are compliant, the store is ready to open its doors.
  
• Recruiting staff - the franchisor will assist in the recruitment process and supply the required training to the new staff as well as the franchisee
  
• Administrative support - among others, it will verify that creditor's accounts and bank accounts are opened correctly, that the business has been registered for VAT and staff statuary requirements ie PAYE, UIF, etc. The franchisor will also ensure that the business has registered with the approved credit card service provider and that the lease and franchise agreements are signed and in place.
  
• Marketing - the support in terms of marketing will vary. Most franchises have a collective marketing fund that benefits all franchisees to a certain extent. Some will only supply menus prior to opening and a basic guide to local marketing; the franchisee will then be responsible for the rest.

The above serves as a general guideline as to the amount of assistance a franchisor can provide when setting up a store. Different franchises will vary in the support that they offer and it is thus crucial that a potential franchisee does as much research as possible on this subject of support as any exclusion could affect the investment greatly.