Frequently Asked Questions

General questions about franchising

In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.

What is the procedure for franchising a business?

In the first instance, a feasibility study must be carried out to ascertain whether the business model is suitable for franchising, the profitability of the project for both the franchisor and the franchisee should be estimated and the conditions which will define the franchise project should be established.

The operations documentation for the project should then be compiled. This documentation should be based directly on the franchisor’s practical experience and elements which define the franchise project. It is paramount that this knowledge and experience are transferred in order to ensure that the franchise package is homogenous and free of personal variations which could affect the tried-and-tested business scheme. It is also important to establish procedural and management standards for the franchise network, determine responsibilities, rights and obligations for each party, outline the joint corporate image as well as fit-out requirements for premises.

The following elements should be included in the operations documentation for franchise projects:

  • Operation manuals 
  • Franchise agreement
  • Visual identity and corporate image manual 
  • Business plan
  • Specification manual for fit-out of premises.

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