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Franchisee Training and Capital Planning

The document provides guidance to franchisees on people involved in their business and estimating starting capital. It discusses that the franchisee will be the owner and may have partners or co-owners. The franchisee should evaluate their skills and hire employees and consultants as needed. Employees should have clear job descriptions. Estimated starting capital includes investment capital for facilities, buildings, and equipment, as well as working capital for materials, wages, rent, and other operating expenses. The document instructs franchisees to determine staffing needs, write job descriptions, and establish an organizational structure.

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Hùng Hoàng
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3 views11 pages

Franchisee Training and Capital Planning

The document provides guidance to franchisees on people involved in their business and estimating starting capital. It discusses that the franchisee will be the owner and may have partners or co-owners. The franchisee should evaluate their skills and hire employees and consultants as needed. Employees should have clear job descriptions. Estimated starting capital includes investment capital for facilities, buildings, and equipment, as well as working capital for materials, wages, rent, and other operating expenses. The document instructs franchisees to determine staffing needs, write job descriptions, and establish an organizational structure.

Uploaded by

Hùng Hoàng
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

GROUP PROJECT- STEP 4

TRAINING TO THE
FRANCHISEES

PEOPLE IN YOUR BUSINESS AND


ESTIMATED STARTING CAPITAL
A. PEOPLE IN THE BUSINESS
OF A FRANSHISEE
 The franchisor provides training
service to franchisees:
– People in your business are:
• You as the owner
• Your partners as co-ownership
• Employees and staff
• Consultants
Franchisee as the owner of his
business
 Duties:
– Develop business ideas, goals, business strategic
plans.
– Organize and encourage all the staff to carry out the
strategic plans.
– Ensure the achievement of business objectives.
 Consider your business skills carefully. Decide
on what you can do and what you can not do
(due to lack of time or skills).
 For what you can not do, you need the other
staff to do that.
 Consult other businesses about how they
organize their business and staff.
Franchisee’ s partners
 Share your responsibilities and authority
 Have clear duties for each partner in the
business to reduce any conflicts.
 EX: partner 1 is responsible for sales, partner 2
– purchasing, 3- business administration.
 Information exchange must be clear and
honest. Business failure is often caused by
conflicts among partners.
 Written agreements must be done among the
partners that clarify each partner’s
responsibilities and commitments.
FRANCHISEE’S STAFF
 Review your business idea and list all
the necessary work and jobs.
 Decide on jobs you are not able to do.
 For each job, describe skills and
requirements needed for your staff.
 Decide on how many employees you
need for each job and all the jobs.
 For each job, write the job description of
each position so that:
– The Staff know clearly what they must do.
– You can evaluate the staff performances.
Franchisee’s staff
 Use the job description to recruit
and select your staff
 Conduct an interview to ensure you
hire right people for right jobs with
right skills.
Consultants
 Information is very important to all
businesses. You need consultants
because you can not know all the
aspects related to your business.
 Identify experts who can help you do
your business now and in future.
 Consultants may be accountants, bank
carders, lawyers, government officials,
good friends
 Refer to trade publications, directories to
find these people.
B. ESTIMATED STARTING CAPITAL FOR
THE FRANCHISEE
 Be sure that:
– After the market research and analysis, you
decide to start your new profitable business.
– You know how many people needed in your
business and their responsibilities.
 Starting capital is the money necessary
to pay for land, factories, facilities,
equipment, advertising, consulting fees,
power, water supply and telephone
expenses. We can divide expenses into
two kinds: investment capital and
current capital.
Franchisee’s Investment capital
 This is money you put in your business. It takes
you long time to recover this investment
money. Investment capital is used for several
parts: factories, buildings, machine, and
facilities.
 Factories and buildings: whether it is the whole
factory or a small office you work in.
 Be sure that you have decided on the location
already.
 Decide on one of the following things:
– Build totally new factories or offices (long time)
– Buy the existing factories or offices
– Rent existing factories or offices
– Use your house for your business.
Franchisee’s Working capital
 Buy materials and goods
 Sales promotion
 Wage payments
 Rental fees
 Insurance fees
 Power electricity, stationary,
transportation, licenses,..
Discuss in your own group
 Make decisions on:
– How many staffs are needed to run
your franchise business project?
Write down their job descriptions and
qualification.
– How many management positions you
need? Write down job descriptions of
these managers.
– Establish an organizational structure
for the franchisee.

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