FRANCHISE DICTIONARY

Advertising Fee (The Cost Of Advertising)
Advertising Fee (the cost of Advertising) is the fees paid by the recipient franchisees (franchisees) to the giver of the franchise (the franchiser) to finance posts spending/shopping ads from the franchiser is disseminated
national/international. The magnitude of the advertising fee to a maximum of 3% of sales. Not every franchiser wearing advertising fee to the franchisee. The Reason of the advertising fee is the fact that the purpose of the franchise network is formed one such large economic scale so that the costs per outlet be efficiency in such a way to compete with effort a type. Remember the advertising fee is the perceived spending post its benefits by all network, then each Member of the network (franchisee)asked to make a contribution in the form of advertising fee.

Franchise Area
Franchise rights granted to individuals or companies covers an area geographically determined in the agreement franchise (Franchise Agreement). In practice Area Franchisee be given targets and dead line deals with the number of outlets to be opened in a particular period of time. Area Franchisees can sell its own franchise rights to Individual or Multiple Franchisee.

Business Format Franchising (Business Format Franchise)
Business format franchising is the most advanced type of franchise. In business format franchising, the Franchiser gives a right (license) to the franchisee to sell your products/services by using the identity of the brand, which is owned franchiser. In addition to the franchiser also trains franchisees in terms of marketing, sales, stock management, accounting, human resources, maintenance, development business and all aspects related to the management of the undertaking concerned. Furthermore, in business format franchise franchiser also provide support
continuous to the franchisees in form of consultancy efforts, internal audit, the centralization of purchases to get the best price, product development and advertising.

Business Opportunity (BO)
BO is a business opportunity, the forerunner of the franchise business. BO
franchise business opportunity is immature, and has a risk the failure of higher than actual franchise business format.

Conversion Franchise (Franchise Conversions)
Franchising franchising is a kind of conversion where the franchiser provide licenses to attempt some sort of franchise to join in the effort in a chain franchiser-owned brand, logo and using the operating system’s franchiser. A franchise like this Format applied by the hotel chains such as choice hotels.

Development Agreement
Development Agreement is an agreement between franchiser and Master Franchisee or Franchisee commitment with regard to Area franchisees in terms target the development of franchise network in its own geographic area.

The Directorate Of Domestic Trade
One of the Directorate within the Department of trade and The franchise industry is fostering industry.

Disclosure
Disclosure is one of the obligations of the franchiser to prospective franchisees. Disclosure is the presentation of facts in the form of personnel, sales conditions as well as finance from franchise to prospective franchisees. Facts This document is presented which is confidential, and may not be used by the prospective franchisee to personal interests, in addition to knowing the conditions franchiser of business before deciding to purchase rights franchise. Disclosure at the beginning of the purchase rights franchise also known as FOC (Franchise Offering Circular). In practice the next disclosure agreement sometimes If the franchiser gives one new information related to the business the franchise to its franchisee.

Disclosure Document
Disclosure Document also known as FOC (Franchise Offering Circular). In the FOC should be listed the balance sheet and P & L Statement in period 3 years back which has been audited by public accountant. FOC is given
at least ten days before the prospective franchisees decided to buy or not the right franchise offered by the franchiser. Rigor and discipline prospective franchisee to ask the franchiser to FOC is one of factors that can protect a prospective franchisee on investment. Don’t buy a franchise rights of the franchiser who do not want to
give to prospective franchisee.

Distributorship Can Work For (Dealer)
Distributorship can work for the rights given by the manufacturer or wholesaler to the individual/company to sell products or services to another party. Distributorship can work for is the forerunner of format franchising Generally distributorship can work for the only concerns the transfer of ownership of the product is not a format franchise. Nevertheless distributorship that lists the existence of disclosure in the terms of their collaboration can be called one of the formats the simplest franchise.

Fee
Fee is a cost that should be issued by the recipient of the franchisees (franchisees) the franchise giver (franchiser) which is generally calculated based on a percentage of sales.

Franchisees (Franchisees)
Franchisees are individuals/companies who are granted rights by the franchiser with How to buy the rights to the area and period.

Franchise Fee (The Cost Of The Purchase Rights Franchise)
The Franchise Fee is the cost of the purchase rights franchise issued by the franchise buyer (franchisee) declared eligible as franchiser’s franchisees meet that criterion. Generally the franchise fee paid only one time only. Franchisee fee will be returned by the franchiser to the franchisee in the form of initial training, facilities and support to set up the beginning of the first outlet which will be opened by the franchisee.

Franchise Offering Circular (FOC)
FOC is a disclosure document provided by the franchiser to franchisee candidates who had qualified, before he decided the signing of the franchise. FOC contain facts or non financially related to the franchiser and the franchisee that is start and that has stopped. In the United States, to protect investors (candidate
franchisee), the FOC should be studied by the prospective franchisee at least for 10 days. In this time the franchiser does not allowed to influence and potential franchisees have not been allowed to sign the agreement in its franchise. For condition of Indonesia, FOC is one new obligation which must be given by franchiser, without any time limit which is obvious as it does in the United States.

Franchiser (Franchise Company)
Franchiser is a company which entitles the other party to distribute one product/service using the brand, logo and system its own operations.

House mark
House mark is a trademark that is used as the identity for differentiate the company with other companies. House mark can be either company name, product name or product groups or even name combined with the trademark (trademark/service mark) other.

Copyright (Copyright)
Copyright is a right of someone exclusively to use and give licence to another person to use such intellectual property for example working system, books, songs, logos, branding, publicity material and so on.

Individual Franchisee
Individual Franchisee is acting on behalf of a franchisee himself who holds the franchise rights for just one outlet, and cannot sell the rights the franchise belonged to him.

Identify Items
Identify items are items such as packaging, POS materials, uniforms, signage, raw materials and so on to be used by the franchisee. These items registered trademarks owned by the franchiser.

Initial Investment
Initial investment is the initial capital must be deposited and are owned by franchisees on its franchise business start up. Initial investment is composed of franchise fee, fixed asset investment and working capital to cover operations during the early months of its franchise business.

Questioner Qualifying Franchisees (Franchisee’s Qualification Questionnaire)
Questioner Qualifying Franchisees is a document prepared by the franchiser to be completed by the candidate franchisees. This document contains information for select the candidate capable and have the motivation to start a business as the franchiser-owned. The contents of this document for example of who, and Why is the candidate interested in buying the franchise rights of the franchiser. Then how of the financial ability of the candidates and so on.

Manual Operation (Operating Manuals or SOP-Standard Operating Procedures)
Operating Manual created by the franchiser as operational guidelines for franchisees. The operating Manual is a comprehensive guide and details about how to perform operational functions in running a business franchiser. In this manual can be listed in the chapter concerned with operational, financial, human resources, marketing, PR, customer service, maintenance and so on. The deviation of the operational manual can cause a loss of its franchise rights to franchisee.

Master Franchisees
The Master Franchisee is the franchisee to obtain direct franchise from a specific geographic area covers Franchiser generally include one jurisdiction (country). Master Franchisee may sell its franchise rights to the Area, as well as Multiple Individual Franchisees.

Multiple Franchisees
Multiple Franchisees are franchisees who holds the franchise rights for more from one outlet in a specific geographic area, but you can’t sell the right franchise He has.

Mystery Shoppers (Mystery Guest, Mystery, Mystery Customer Motorist)
A Mystery Shopper is one tool used by the franchiser or franchisee to assess how well the application of operational standards in one outlet views from the side of the customer.

Franchiser-Owned Outlet (Company-Owned Outlets, Outlet Store, A Prototype Pilot)
Reliable Franchiser is the franchiser that has proven successful and the outlet operates their own named Company Owned Outlet, Pilot or Prototype Store Outlet. Do not ever purchase rights franchise of the franchiser does not have outlets that are akin to an outlet that is marketed the rights of franchiser.

Bid (Offer)
Bidding is the oral or written communication from the franchiser to prospective franchisees. Written communication can be a prospectus and so on.

Franchise Agreement (Franchise Agreement)
A franchise agreement is a set of terms, conditions and our commitment created and desired by the franchiser to the franchisee him. In franchise agreement listed the provisions relating to the rights and obligations franchisee and franchiser, such as territorial rights are owned by franchisees,location requirements, provision of training, the costs are to be paid by franchisee to the franchiser, the provisions relating to the old testament franchises and other the provisions of and continuously relationship between the franchiser and franchisee.

Pro Forma Financials (Financial Pro Forma)
The financial pro forma amounts motivated franchisees generally consist of the balance sheet, reports Loss Profit and cash flow statement. The third report is the report of Janis that mandatory provided by the franchiser to the franchisee candidate, his prior Agreement The franchise was signed.

Protected Territory
Protected Territory is the geographic limits are given by the franchiser to franchisee exclusively. In the area of the Protected Territory, no franchiser allowed to grant a franchise for a business similar to others or similar business with the aim of establishing rival or even no effort by franchisees.

Quality Control (Operational Audit)
Quality Control (Operational Audit) was conducted by the method of FRANCHISE DICTIONARY

Advertising Fee (The Cost Of Advertising)
Advertising Fee (the cost of Advertising) is the fees paid by the recipient franchisees (franchisees) to the giver of the franchise (the franchiser) to finance posts spending/shopping ads from the franchiser is disseminated
national/international. The magnitude of the advertising fee to a maximum of 3% of sales.
Not every franchiser wearing advertising fee to franchisee. The Reason of the advertising fee is the fact that the purpose of the franchise network is formed one such large economic scale so that the costs per outlet be efficiency in such a way to compete with effort a type. Remember the advertising fee is the perceived spending post its benefits by all network, then each Member of the network (franchisee) asked to make a contribution in the form of advertising fee.

Franchise Area
Franchise rights granted to individuals or companies covers an area geographically determined in the agreement franchise (Franchise Agreement). In practice Area Franchisee be given targets and dead line deals with the number of outlets to be opened in a particular period of time. Area Franchisees can sell its own franchise rights to Individual or Multiple Franchisee.

Business Format Franchising (Business Format Franchise)
Business format franchising is the most advanced type of franchise. In business format franchising, the Franchiser gives a right (license) to the franchisee to sell your products/services by using the identity of the brand, which is owned franchiser. In addition to the franchiser also trains franchisees in terms of marketing, sales, stock management, accounting, human resources, maintenance, development business and all aspects related to the management of the undertaking concerned. Furthermore, in business format franchise franchiser also provide support
continuous to the franchisees in form of consultancy efforts, internal audit, the centralization of purchases to get the best price, product development and advertising.

Business Opportunity (BO)
BO is a business opportunity, the forerunner of the franchise business. BO franchise business opportunity is immature, and has a risk the failure of higher than actual franchise business format.

Conversion Franchise (Franchise Conversions)
Franchising franchising is a kind of conversion where the franchiser provide licenses to attempt some sort of franchise to join in the effort in a chain franchiser-owned brand, logo and using the operating system’s franchiser. A franchise like this Format applied by the hotel chains such as choice hotels.

Development Agreement
Development Agreement is an agreement between franchiser and Master Franchisee or Franchisee commitment with regard to Area franchisees in terms target the development of franchise network in its own geographic area.

The Directorate Of Domestic Trade
One of the Directorate within the Department of trade and The franchise industry is fostering industry.

Disclosure
Disclosure is one of the obligations of the franchiser to prospective franchisees. Disclosure is the presentation of facts in the form of personnel, sales conditions as well as finance from franchise to prospective franchisees. Facts This document is presented which is confidential, and may not be used by the prospective franchisee to personal interests, in addition to knowing the conditions franchiser of business before deciding to purchase rights franchise. Disclosure at the beginning of the purchase rights franchise also known as FOC (Franchise Offering Circular). In practice the next disclosure agreement sometimes If the franchiser gives one new information related to the business the franchise to its franchisee.

Disclosure Document
Disclosure Document also known as FOC (Franchise Offering Circular). In the FOC should be listed the balance sheet and P & L Statement in period 3 years back which has been audited by public accountant. FOC is given
at least ten days before the prospective franchisees decided to buy or not the right franchise offered by the franchiser. Rigor and discipline prospective franchisee to ask the franchiser to FOC is one of factors that can protect a prospective franchisee on investment that will be invested. Don’t buy a franchise rights of the franchiser who do not want to give to prospective franchisee.

Distributorship Can Work For (Dealer)
Distributorship can work for the rights given by the manufacturer or wholesaler to the individual/company to sell products or services to another party. Distributorship can work for is the forerunner of format franchising Generally distributorship can work for the only concerns the transfer of ownership of the product is not a format franchise. Nevertheless distributorship that lists the existence of disclosure in the terms of their collaboration can be called one of the formats the simplest franchise.

Fee
Fee is a cost that should be issued by the recipient of the franchisees (franchisees) the franchise giver (franchiser) which is generally calculated based on a percentage of sales.

Franchisees (Franchisees)
Franchisees are individuals/companies who are granted rights by the franchiser with How to buy the rights to the area and period.

Franchise Fee (The Cost Of The Purchase Rights Franchise)
The Franchise Fee is the cost of the purchase rights franchise issued by the franchise buyer (franchisee) declared eligible as franchiser’s franchisees meet that criterion. Generally the franchise fee paid only one time only. Franchisee fee will be returned by the franchiser to the franchisee in the form of initial training, facilities and support to set up the beginning of the first outlet which will be opened by the franchisee.

Franchise Offering Circular (FOC)
FOC is a disclosure document provided by the franchiser to franchisee candidates who had qualified, before he decided the signing of the franchise. FOC contain facts or non financial financially related to the franchiser and the franchisee this time and that has stopped. In the United States, to protect investors (candidate
franchisee), the FOC should be studied by the prospective franchisee at least for 10 days. In this time the franchiser does not allowed to influence and potential franchisees have not been allowed to sign the agreement in its franchise. For condition of Indonesia, FOC is one new obligation which must be given by franchiser, without any time limit which is obvious as it does in the United States.

Franchiser (Franchise Company)
Franchiser is a company which entitles the other party to distribute one product/service using the brand, logo and system its own operations.

House mark
House mark is a trademark that is used as the identity for differentiate the company with other companies. House mark can be either company name, product name or product groups or even name combined with the trademark (trademark/service mark) other.

Copyright (Copyright)
Copyright is a right exclusive to use and give licence to another person to use such intellectual property for example working system, books, songs, logos, branding, publicity material and so on.

Individual Franchisee
Individual Franchisee is acting on behalf of a franchisee himself who holds the franchise rights for just one outlet, and cannot sell the rights the franchise belonged to him.

Identify Items
Identify items are items such as packaging, POS materials, uniforms, signage, raw materials and so on to be used by the franchisee. These items registered trademarks owned by the franchiser.

Initial Investment
Initial investment is the initial capital must be deposited and are owned by franchisees on its franchise business start up. Initial investment is composed of franchise fee, fixed asset investment and working capital to cover operations during the early months of its franchise business.

Questioner Qualifying Franchisees (Franchisee’s Qualification Questionnaire)
Questioner Qualifying Franchisees is a document prepared by the franchiser to be completed by the candidate franchisees. This document contains information for selecting the candidate capable and have the motivation to start a business as the franchiser-owned. The contents of this document for example of who, and Why is the candidate interested in buying the franchise rights of the franchiser. Then how of the financial ability of the candidates and so on.

Manual Operation (Operating Manuals or SOP-Standard Operating Procedures)
Operating Manual created by the franchiser as operational guidelines for franchisees. The operating Manual is a comprehensive guide and details about how to perform operational functions in running a business franchiser. In this manual can be listed in the chapter concerned with operational, financial, human resources, marketing, PR, customer service, maintenance and so on. The deviation of the operational manual can cause a loss of its franchise rights to franchisee.

Master Franchisees
The Master Franchisee is the franchisee to obtain direct franchise from a specific geographic area covers Franchiser generally include one jurisdiction (country). Master Franchisee may sell its franchise rights to the Area, as well as Multiple Individual Franchisees.

Multiple Franchisees
Multiple Franchisees are franchisees who holds the franchise rights for more from one outlet in a specific geographic area, but you can’t sell the right franchise
He has.

Mystery Shoppers (Mystery Guest, Mystery, Mystery Customer Motorist)
A Mystery Shopper is one tool used by the franchiser or franchisee to assess how well the application of operational standards in one outlet views from the side of the customer.

Franchiser-Owned Outlet (Company-Owned Outlets, Outlet Store, A Prototype Pilot)
Reliable Franchiser is the franchiser that has proven successful and the outlet operates their own named Company Owned Outlet, Pilot or Prototype Store Outlet. Do not ever purchase rights franchise of the franchiser does not have outlets that are akin to an outlet that is marketed the rights of franchiser.

Bid (Offer)
Bidding is the oral or written communication from the franchiser to prospective franchisees. Written communication can be a prospectus and so on.

Franchise Agreement (Franchise Agreement)
A franchise agreement is a set of terms, conditions and our commitment created and desired by the franchiser to the franchisee him. In franchise agreement listed the provisions relating to the rights and obligations franchisee and franchiser, such as territorial rights are owned by franchisees,location requirements, provision of training, the costs are to be paid by franchisee to the franchiser, the provisions relating to the old testament franchises and other relationship between the franchiser and franchisee.

Pro Forma Financials (Financial Pro Forma)
The financial pro forma amounts motivated franchisees generally consist of the balance sheet, reports Loss Profit and cash flow statement. The third report is the report of that mandatory provided by the franchiser to the franchisee candidate, his prior Agreement The franchise was signed.

Protected Territory
Protected Territory is the geographic limits are given by the franchiser to franchisee exclusively. In the area of the Protected Territory, no franchiser allowed to grant a franchise for a business similar to others or similar business with the aim of establishing rival or even no effort franchisees.

Quality Control (Operational Audit)
Quality Control (Operational Audit) was conducted by the method of franchiser to ensure operational standards laid out in the Manual Operations are run consistently on its franchise network.

Trade Secrets (Trade Secret)
A trade secret is the knowledge owned by the franchiser awarded to a franchisee of the franchise agreement signed between the them. Trade secrets can be either a surgical procedure, or the recipe list customers and suppliers.

Signature Product
Signature Product is a product/service sold the franchiser identity is at once an exclusive trademark is widely known and often represents the identity of the company, for example a Big Mac to McDonald ‘s. A successful Franchiser has always had a signature the product has a positive image and awareness, received well in the marketplace.

Slick
Slick is broadcast ready advertising materials prepared by the franchiser to the his franchisees. The existence of this ready-made advertising materials will be cheap the advertising costs and marketing of the franchisee.

Feasibility Study Of Franchisees (Franchisees Business Feasibility Studies)
Franchising is a method that is effective and proven successful to get external expansion funds with the lowest risk. In order for a Franchisee can be as successful as Franchiser, it needs to be done feasibility study Franchisees. This study aims at to recognize and find out whether prospective franchisees have characteristics a particular franchiser-owned during the efforts of pioneering from scratch.

Turnkey
Turnkey is a condition where the franchiser is responsible for start of the franchisee business ranging from zero to the shops opened for the first time for customers.

Tying
Tying the policies conducted by the franchiser to force franchisee buys the particular product from the franchiser as a condition for the purchase of other products. In the United States, Tying is illegal if the price of the product franchiser turns out not to offer cheaper than the market price.

Franchising (Franchise)
Franchising is a form of business format in which the first party called the franchiser provide rights to the second party called franchisees for goods/services distribution within the scope of the geographic area and the period a specific time to use the brand, logo, and the operating system that is owned and developed by the franchiser. The granting of this right was poured in the form of franchise agreement (franchise agreement). What distinguishes a franchise with Agency form is the franchise fee, royalty and cloning of the system the management of the business of the owner of the brand (the franchiser) to franchisees. to ensure operational standards laid out in the Manual Operations are run consistently on its franchise network.

Trade Secrets (Trade Secret)
A trade secret is the knowledge owned by the franchiser awarded to a franchisee of the franchise agreement signed between the them. Trade secrets can be either a surgical procedure, or the recipe list customers and suppliers.

Signature Product
Signature Product is a product/service sold the franchiser identity is at once an exclusive trademark is widely known and often represents the identity of the company, for example a Big Mac to McDonald ‘s. A successful Franchiser has always had a signature the product has a positive image and awareness, received well in the marketplace.

Slick
Slick is broadcast ready advertising materials prepared by the franchiser to the franchisees. The existence of this ready-made advertising materials will be cheap the advertising costs and marketing of the franchisee.

Feasibility Study Of Franchisees (Franchisees Business Feasibility Studies)
Franchising is a method that is effective and proven successful to get external expansion funds with the lowest risk. In order for a Franchisee can be as successful as Franchiser, it needs to be done feasibility study Franchisees. This study aims at to recognize and find out whether prospective franchisees have characteristics a particular franchiser-owned during the efforts of pioneering from scratch.

Turnkey
Turnkey is a condition where the franchiser is responsible for start of the franchisee business ranging from zero to the shops opened for the first time for customers.

Tying
Tying the policies conducted by the franchiser to force franchisee buys the particular product from the franchiser as a condition for the purchase of other products. In the United States, Tying is illegal if the price of the product franchiser turns out not to offer cheaper than the market price.

Franchising (Franchise)
Franchising is a form of business format in which the first party called the franchiser provide rights to the second party called franchisees for goods/services distribution within the scope of the geographic area and the period a specific time to use the brand, logo, and the operating system that is owned and developed by the franchiser. The granting of this right was poured in the form of franchise agreement (franchise agreement). What distinguishes a franchise with Agency form is the franchise fee, royalty and cloning of the system the management of the business of the owner of the brand (the franchiser) to franchisees.

CRITERIA FOR A SUITABLE FRANCHISE BUSINESS FOR YOU

Basically all types of businesses can franchise business, for example, Salon, Spa,
Service station, Restaurant, institution, Telecommunication/Internet Cafe, consultancy services, Minimarket, grocery store and so on.

Some of the main reasons why companies choose development strategy venture through the business format franchises are:
– Get the operating efficiency and economic power.
– Achieve a faster market penetration with a smaller capital.
– Reach target consumers more effectively through advertising and promotions
along.
– Sell products and services through a network of dedicated franchisees.
– Replace the internal personnel needs with a franchisee
motivated people.
– Move the main responsibility over issues of location, training, personnel, local advertising, and other administrative matters to franchisees with guidance from the franchiser.

Business development strategies through a franchise format is indeed fascinating to adopted. But it needs to be underlined that the strategy of business development through franchising, have a greater chance of success if the company It has been a success and ran for 5 years, with a rate of profit
that is feasible for the last three years in a row.

Next are the criteria for a suitable business franchise business? When you interested in making your business now growing through franchising, there are some of the factors that should be considered. The process can be long and expensive, but the results may be worth it. The following factors that need to be assessed do your business is suited for franchise business:
1. Business concepts, products, services and markets in which these businesses operate.
Whether the business is different from other rival?
2. Whether the business is ready for a standardize system of operations?
3. Does this business have names that are recognized by the market?
4. What products and/or services, is protected by trademarks and patents?
5. What are the rules that require the existence of a guarantee or a warranty
should be offered to the franchisee?
6. How taxation is taxation will effect on cash in and cash out related company links between the franchiser and franchisee?
7. Does the staff have the expertise and management competency so capable and ready to implement the program franchise?
8. Are there any management and infrastructure for recruiting and training
franchisee?
9. If there is already a prototype operating and profitable
for a period of more than 3 years continuously go?
10. What is the planned return on investment and operational costs
quite reasonable for franchisees?

If you can give a positive answer to the ten questions above, franchise development strategies is a reasonable choice.

17 KEYS to SUCCESSFUL FRANCHISING

Any company considering franchising as a method of growth and distribution or individuals considering franchise
as a method to start his own business, must have the key to success for This industry. Based on observation and hands-on experience working in the largest franchise company in its field (McDonald’s and Mailboxes) writer
17 summarize the key to success for a franchise business, namely:

1. businesses that are run should be a prototype effort (or series of Shop) which proved to be a success. A key factor is the Foundation of a franchise program. These shops should have been tested, serviced, and operated successfully as well as continue to be profitable.

2. Have a strong management team consisting of employees, managers and Director (and also the competent consultants) who understand the industry the special field of the franchise, as well as efforts to understand
the law and the business of franchising as a method of expansion.

3. has sufficient capital to start and grow a franchise program and make sure that there is enough capital for franchiser to provide initial support and follow-up on franchisees. Franchisee recruits must also have sufficient capital to fund investment costs and operational costs (working capital) in the early stages of the growth of his business.

4. Have the identity of the trademark’s distinctive, different and protected by law. All It includes the trade name (brand), uniforms, signage, slogan, attire and image the company overall.

5. operation and management methods Have proven and poured in form of a written comprehensive operating manual, and are not easily imitated by competitors. Keep its value for franchisees in over a long time and can
controlled via a standard quality control of operational objective and clear.

6. Have a systematic training program and applicable for the franchisee is well in
Headquarters, in a store or at a location that is proposed by the franchisee. This training can be
held at the beginning of co-operation or as a continuous program.

7. have a supporting staff of field (franchise support) are trained and professional. This Staff periodically helps franchisees and monitoring standards quality control.

8. Have a comprehensive legal document that reflects the business strategy company policy and operations. Document supply (Franchise Offering Circular) must be prepared in accordance with local law, the agreement and the franchise must show a balance between the rights and obligations of the franchiser and franchisees.

9. Efforts are being offered have proven sufficient market demand for the products and services developed by the franchiser. Franchiser’s products and services must have a market which is able to guarantee the sales growth
sustainability is not a trend or a momentary model, capable of match against a rival plan from directly or indirectly, and the shift in consumer preferences.

10. Have a set of standard architecture and the site selection criteria uniform. These standards have been developed carefully and could easily obtained in a competitive real estate market.

11. Understand the proper understanding of competitors (direct or not direct) that will be faced by the franchiser in franchises on the market prospective franchisees, and a rival who would be facing the franchisees in marketing products and services to potential customers.

12. have a relationship with Government, suppliers, financial institutions, developers, and other important resources.

13. have a filtering system and the franchisee to identify recruitment qualification requirements that must be met for prospective franchisees, for example financial capability, reliability, and business knowledge of the industry concerned.

14. record-keeping and reporting systems Are effective for maintaining performance franchisees and ensure that the royalty is reported accurately and get paid on time.

15. has the capability and facilities for research and development of products and services new for consumers continuously through a franchise network.

16. have a communication system that makes it easy to open dialogue and sustainability with franchisees, who later would reduce the the possibility of conflict in this network.

17. has the program of advertising, marketing and PR at the local level, regional, national and even international; designed for candidates franchisees and consumers in places run by franchisees.

Hopefully with the effort to have 17 keys to success, the Local Franchiser in Indonesia will be able to increase the power and competition the successful raising of the franchise. Welcome to compete in the franchise.

WHAT IS SHRINK?

“Shrink is the difference between the value of product received, versus the value of that same product at the point of its sale.”

EFFECTS ON GM SHRINK
Receiving properly
Internal theft by employees
External theft by shoplifters
Damage
Pricing

RECEIVING
Count inventory to verify you received
Keep a perpetual total of GM purchases by day/week/month inventory cycle
Send in credits for shortages and overages for warehouse, super value etc..

INTERNAL THEFT
Know what you are selling vs. buying each week
Is your store managing the Front End
Use EAS – tag product, alarms responded too
Check EAS log book
Create LP awareness in your store

EXTERNAL THEFT
Identify what you are selling vs. buying
Reduce quantities, place at a secure location and/or EAS tag high theft product
Make sure Security Walks are called hourly throughout the day

Make all teammates aware of high theft product, times theft occurs and known shoplifters.
Have teammates walk aisles of high theft product each time they go from front to back of store.
– Use mirrors, domes and cameras as needed
– Use signage to heighten awareness
Create LP awareness in your store

DAMAGE / OUT OF DATE
Ensure that only damaged merchandise is returned
Rotate product consistently to avoid out of dates

PERPETUAL INVENTORY TRACKING
Your Store Director is required to track sales to purchases weekly for Grocery/GM
Track daily/weekly purchases
– Note any seasonal purchases
– Review sales movement on high theft product
Track weekly sales
– Are you buying more than your selling each week – You are replacing shrink!
Know what back stock you have – reduce to zero

ITS ALL ABOUT AWARENESS
Know what your purchasing
Know your sales
Know what you are selling
Know what you are shrinking

Share with your teammates – MAKE THEM AWARE