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Franchise Opportunities2010 - A New Way of Franchising We’re changing the way we franchise our business. People are often worried about purchasing franchises as it can mean a large amount of dollars to put down before commencing. It’s normal to ask questions such as; will it work, will I get my investment back within a reasonable time etc etc? Well, I’ve got a fantastic “try now” offer for you that won’t use up all your cash resources and has no hidden nasty surprises. This new concept allows you to purchase a remaining State franchise for an initial “limited time”. What this means is you can purchase for one full year at a time. You get complete access to all products that conflictsolvers has and full re-sale rights to materials etc. If you feel comfortable you can continue for a second year as well. After two years, you then have the option of full purchase of the franchise or opting out. A real try before you buy deal. Here’s the BEST bit. If after two years you decide you want the franchise, take the dollars you’ve paid off the total asking price. Here’s an example: Q. Do I need any special training to own a conflictsolvers franchise? Q. I see you have a franchise in New Zealand. Do you franchise to other countries as well? Q. I like the idea of having a franchise but I already do some other consultancy that isn’t mediation. How might the two work together? Q. Are there any other costs for each year? Q. How do I work out the one year initial franchise fee for my state? Q. If I purchase the franchise for just 10%, do I have full commercial rights to conflictsolver programs, videos, materials etc? Q. Will I get training in how to use the programs, materials, run courses etc? Q. After two years can I continue to purchase conflictsolvers a year at a time? Q. What if someone comes along during the first year and wants to purchase conflictsolvers as a franchise paying the full fee? Q. What if during the first year, I want to get out of conflictsolvers, can I get a refund or can I sell it to someone else? Q. I noticed that for full franchisees they can sub-franchise to someone else within their state. Can I do this? Q. Will I get a written contract guaranteeing my rights in this new franchise concept? Q. Why is this so cheap?
Before considering the purchasing of an exclusive franchise, you should note the following before reading the business plan:
Who will this franchise most suit?
BUSINESS PLAN Primary Objectives: To establish a mediation training consultancy specialising in running education based training programs. The emphasis will be on high quality training products and service, business growth and the development of a high profile business identity across Australia. The aim is to provide excellence in service delivery. Business Plan Summary The Concept The current proprietor Fred Stern with over seventeen years of experience in the field of mediation and an expertise in delivering high quality education training packages. The proposal is to establish across Australia, new consultancies that will as its primary objective provide a range of education based programs The product/service The business will supply a range of training programs both within educational institutions as well as mediation services to general organizations and the community. Products and services will be of a high standard and include both resources for re-sale and the provision of direct service. Market analysis Anecdotal evidence in Victoria has shown an increasing demand for high quality educational programs and resources in the areas of conflict resolution. There are currently no existing Australia wide consultancy services where all States are represented by a business proprietor. This opportunity will allow for strong growth across Australia by motivated people. Marketing strategy I believe the best marketing strategy is a combination of a good network of contacts, a reputation for quality and reliability and personal referrals. This will be complimented by a variety of advertising including an Internet site, promotional poster give away, flyers etc. Financial Data The initial cost of a state wide franchise is as follows:
Paying the franchise fee will give you exclusive rights (one which you can sell at a later stage as a whole and re-franchise within your own state). Note however that re-sales of sub-franchises may only occur once all fees are fully paid. Strengths, Weaknesses, Opportunities and Threats: SWOT analysis Strengths
Over several years, many changes have taken place, particularly within the education sector. Schools are now required to implement a higher number of specialised programs and are opting for outside consultants to assist in this area. Participants in the community are looking to increase their base line skills and our courses represent a solid opportunity for this to occur. Conflictsolvers keeps abreast of developments within the field and currently (in 2009) offers accredited mediation courses well below others being offered (we are well placed in the market).Marketing Strategies A good marketing strategy is vital to any business First Class customer service
The proprietor believes that over a number of years, reasonable fees have been charged and accepted by a range of different clientele. This will give the business a competitive advantage. The Competitive Edge The competitive edge will be through superior products and service, quality and established market product and range of materials. Also well established pricing will allow a solid access into the market. Sales Targets linked to working capital Aside from the franchise payment required, new franchisee’s should have the following working capital:
Franchisees will keep abreast of new developments, products etc and monitor existing programs etc. Those programs that are successful will be expanded and the others will be abandoned. Whilst no direct promises can be made on the profitability within the first year, with reasonable input, franchisees should easily cover all costs and have strong growth. Business Structure Franchisees may choose whatever structure that best suits their own business needs. Whilst each franchisee may sub-franchise within their state, in matters of changes to the business, they are entitled to one vote only per state. MORE FAQ What if I would like to work in this area but have no real experience with mediation or training? You seriously need to ensure you have mediation skills or attend a course. I can give you great products and great ideas about selling but I can’t give you instant skills and personality to run a franchise. Whilst I do not require you to prove you have these skills, you would be foolish to bluff your way into a franchise. Once I own my State franchise, can I sub-divide it into other areas? Yes you may. However negotiations are between you and the sub-franchisee and all legal agreements are between the two of you. They must be made aware that they will need to operate within existing guidelines. Whilst they do not have individual voting power (ie: one state, one vote), they are still required to contribute $500 per year towards advertising etc. What if I don’t want my franchise anymore? You can sell it off. If you simply do not continue to operate, and your annual $500 is not received within 3 months of being due, your franchise will be sold off to the highest bidder. You will receive proceeds less advertising costs, any legal costs and less 20% commission from the sale (which goes to the central banking account). Can I run other programs than what is centrally agreed upon? Yes, but programs need to be approved overall by franchisees if they are “mediation” type programs. You are of course able on your own home page to advertise other work you currently do. How will franchisees keep in contact with each other and updated? Through a closed mailing list on the Internet whereby constant feedback etc can be received. Franchisees may also decide to meet face to face each year (different state). Who will keep the account with yearly franchise fees in it? Currently kept by Fred (Victorian franchise). Policy and practice will be put into place if necessary in the future. What happens if I decide to take up a franchise and change my mind? You initially have seven days to change your mind once payment is made. Up to this stage you will receive a full refund. If you decide to make two lots of payments and the second lot is not paid up then it will revert back to the initial proprietor unless suitable other arrangements are made and agreed to. What if someone from another State gets a request for some products or service? You can only sell products to your State's post codes. If for example in Victoria someone from SA rang for some products, I would pass it on to SA. In the case of services, the same would occur. If for some reason, only a particular date is available and the person in that state is not, they may negotiate for an outside trainer to come in (ie receive a commission). What about any States not sold first up. Who can service those? Any State franchise not sold remains the property of Fred Stern, the initial proprietor. Are we required to purchase stock ie printing etc from you? No, if you have your own printers etc, feel free to use them. However I will let you know where in Victoria I have obtained the various products from. |
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