Franchise feasibility study designing the franchise system
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Transcript of Franchise feasibility study designing the franchise system
![Page 1: Franchise feasibility study designing the franchise system](https://reader034.fdocuments.in/reader034/viewer/2022052117/58784e641a28ab68198b5d6f/html5/thumbnails/1.jpg)
FOR THE POTENTIAL FRANCHISOR
With Maria Dinah A. Dimacali
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Feasibility Study
An analysis and evaluation of a proposed project to determine if it (1) is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable.
Feasibility studies are almost always conducted where large sums are at stake.
Also called feasibility analysis.
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The Underlying Business
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The Underlying Business
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The Underlying Business
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The Underlying Business
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Products and Services
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Products and Services
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Products and Services
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The Systematization of the Business
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The Systematization of the Business
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The Systematization of the Business
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The Systematization of the Business
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The Systematization of the Business
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The Support System
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The Support System
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The Support System
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The Support System
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The Support System
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The Support System
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The Support System
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The Support System
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The Support System
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The Support System
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The Fees
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The Potential for the Expansions
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The Potential for the Expansions
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The Potential for the Expansions
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The Potential for the Expansions
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Sometimes, success of one depends on the success of others…
FEASIBLE, WORKABLE AND PROFITABLE IN THE LONG RUN…
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With Maria Dinah A. Dimacali
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Management Competency
Ensure whether the existing management (the franchisee) has adequate capabilities and staff to manage the growth of the franchise system
FRANCHISEES are appointed to become the integral part of the franchise system
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Competitors’ Analysis
Competition on both at the franchise level and also at the consumer level
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Conflict Management
Anticipate probable source of conflicts between the franchisor and the franchisees and devise strategies to resolve them
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Economic Impact
Impact of investments, cash flows and profits of both the franchisor and the franchisees
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Financing Requirements
Whether the kind of investment the franchise system requires shall be fulfilled by a potential franchisee
Alternate sources of finance
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Exit Strategies
An exit clause
Modality to terminate the agreement
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Marketing Strategy
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Management Information System
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Business Policy
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Training and Programme Calendar
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Monitoring Mechanism
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Support Mechanism
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A franchisor should carefully study the system and develop a franchise system that may provide an
answer to most of the questions that may arise during the implementation of franchising strategy.
AN INDICATIVE LIST… NOT AN EXHAUSTIVE LIST…
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