Starting a franchise?

Franchising is in many ways as knowledge industry.  The franchisor has as a result of innovation, intensive system development and product refinement gained market acceptance and customer loyalty.  The franchisor wishing to exploit his market position shares his knowledge with the franchisee.

The platform on which the franchise is built is its Intellectual Property.  Franchisor’s gain their income by parting with this knowledge.

The franchisor would be wise therefore to protect the Intellectual Property involved in the franchise and ensure the monopoly position is not eroded by seeking the advice of an IP professional with the aim of giving Trade Marks, Patent or Design rights.

The franchisor in order to successfully impart his knowledge and to assist franchisees also run successful businesses using his methods will communicate his methods via basic operating procedures manual, quality assurance manuals and training manuals.  The strongest most durable franchise invariably has the most comprehensive work manuals and maintenance programmes.

This aspect of starting a franchise is often the biggest hurdle facing prospective franchisors but it is, along with a consistent brand, the platform which will bring the biggest reward.  It is also the franchisor’s only assurance that the systems, innovation and development (the IP) that may have taken to refine are carried out in a consistent manner and the investment in the Intellectual Property is protected and not diluted.