How to ASK during due diligence

3 steps to knowing what you don’t know when entering franchising

Everyone entering franchising for the first time have the same three problems

1. You don’t know what you don’t know2. You cannot find the right people to ask the right

questions3. You don’t know how to appraise the offer on the

table

It simple all your have to do is ASK

•A - Appraise, the franchise, business case and You•S – Seek information about the franchise, the business case and for you,•K – Know your franchise, the business case and your goals and aspirations

APPRAISE

• FRANCHISE– The Franchise System– The Franchisor

• BUSINESS CASE– Create the Business Plan & Budget– The site/territory and lease

• YOU– Is this the right brand for you?– Do you have the skills to run the business– Can you manage staff– Can you see yourself working in the store?

SEEK

•FRANCHISE– Advice from your Lawyer– Information from existing/past franchisees in the brand

•BUSINESS CASE– Advice from your Accountant– The best Finance deal via a broker– Information about the relevant Employment Award or agreement

•YOU– Professionals to create your support team i.e. Bookkeeper Mentor– Education about franchising– Associations Networks Franchise Council of Australia, National Retailers Assn – Training in business operation should you need it

KNOW• FRANCHISE

– The Disclosure Document and Franchise agreement– The Code of Conduct and dispute resolution process– The operations manual– Marketing Fund– Intellectual property

• BUSINESS CASE– Your break even– Your Key Performance Indicators (KPIs)– Your Lease conditions– Your Exit Strategy– Your target customer

• YOU– Your strengths and weaknesses– Your Goals and aspirations– Your leadership ability

3 stages of Due Diligence

1ST session with Franchisee Success Learn About Franchising

What is franchising?•Who is the ACCC and what is their involvement in Franchising?•What is the proper timeline in purchasing a franchise business?•What franchise brand suits you?•Appraising the disclosure document•Appraising the Franchise Agreement•Appraising the code of Conduct•Appraising you

2nd session with Franchisee SuccessWHATS THE DEAL? Appraise the offer

•Appraise the letter of offer•Build the Budget•Look at the site•Look at the fitout/equipment requirements•Employment agreement – What's the franchise got and what do you need?•Preparing for the Finance Broker, Accountant and Lawyer

Time - out

Go and SEEK

•Visit the Finance Broker Accountant and Lawyer – ask your questions•Interview existing and past franchisees in the brand•Attend to creating the relevant Employment agreement or learn your Award•Seek out your support team – Bookkeeper, Mentor, training providor•Do online Franchisee pre-entry course Griffith University – its free•Join association networks•Train to improve your business skills i.e. how to read a Profit & Loss report, how to manage cashflow

3rd session with Franchisee Success Complete the Due Diligence• Build the business case• Finalise the business plan and budget• Create your timeline to store open• What is your break even?• What are your Key Performance Indicators?• What is your Exit strategy?• Who is your support team?

Are you Store Ready?

One more product from Franchisee Success2 sessions - Getting your team and your business ready for open1st session - Building your team right from the first position vacant

advertisement through to the first shift in store – guiding you all the way– Interviewing for the right team members– Setting up your payroll– Staff record management– Doing your first roster– Getting a rotational roster– Selecting the leadership team

2nd session – getting your business management right

– Choosing the accounting software– Learning your Point of Sale System back of house– Setting up the chart of accounts– Setting up your filing system– Briefing the bookkeeper OR setting up your home office– Know what to look for from day 1 putting the KPI’s to work

Contact Elizabeth for further details

• Visit www.franchiseesuccess.com.au• Or phone 1300 159 117• Or email

elizabeth@franchiseesuccess.com.au