Are you here…?

• You have a better product than your competitors and you are scared somebody will steal your ideas?
• People walking through your operation with notepads and cameras?
• Trouble sleeping at night wondering who will knock off your operation first?
• Certain that your business is the next Nando’s story, if only you could get the capital?
• Tired ofreading about companiesand thinking, “I have a better franchise concept than that company.”?

Then you should consider franchising.

Finding our way through the maze of life is an interesting journey. It all begins in the way we think and consider things. We all have been trapped in the matrix of thinking so Franchise in a box will help you look at HOW TO THINK OUTSIDE THE BOX and put your franchise brand in a box.

WHY FRANCHISE?

In general, companies franchise for one of three reasons: money, time or people.

Money…

• The primary barrier to expansion faced by today’s businessperson is capital. Franchising allows companies to expand without the risk of debt or the cost of equity.
• Since the franchisee provides the initial investment at the unit level, franchising allows for expansion with minimal capital.
• Moreover, since it is the franchisee, and not the franchisor, who signs leases and commits to various service contracts, franchising also allows for expansion with virtually no contingent liability, thus greatly reducing the risk to the franchisor.

People…

• Another barrier to expansion facing many of today’s businesses is finding and retaining good unit managers.
• All too often, a business owner spends months looking for and training a new manager only to see that manager leave — or worse yet, hired away by a competitor.
• Franchising allows the business owner to overcome many of these problems by substituting a motivated franchisee for the unit manager.
• Interestingly enough, since the franchisee has both an investment in the unit and a stake in the profits, unit performance will often improve.
• And since a franchisor’s income is based on the franchisee’s gross sales, and not profitability, monitoring unit level expenses becomes significantly less cumbersome.

Time…

• Finally, opening a unit takes time. Hunt for sites. Negotiate leases. Arrange for design and build-out. Secure financing. Hire and train staff. Purchase equipment and inventory. The end result is that the number of units you can open in any given period of time is limited.

For companies with too little time (or too little staff), franchising is often the fastest way to grow.

• That’s because it is the franchisee that performs most of these tasks.
• The franchisor provides the guidance, of course, and the franchisee does the legwork.
• Thus, franchising not only allows the franchisor financial leverage, but it allows him to leverage his resources as well.

BUT IS MY BUSINESS “FRANCHISABLE?”

Franchising is a relatively flexible format, and just about any type of business can be franchised, provided it meets some basic characteristics:

• It needs to be credible. Does it have experienced management? A track-record over time? Is the concept proven? Has it achieved good local press or public acclaim?
• It needs to be unique. Is it adequately differentiated from competitors? Is it marketable as a business opportunity? Does it have a sustainable competitive advantage?
• It needs to be teachable. Are the systems in place? Are operating procedures documented? Could someone learn to operate the business in three months or less?
• And it needs to provide an adequate return. Not just profitability. If a business cannot generate a 15% - 20% return on investment after deducting a royalty (typically between 4% and 8%), it is going to have difficulty keeping franchisees happy.

If your business meets these criteria, then it may be a good candidate for franchising.

Franchise in a Box Services

Remaining at the forefront of innovation, Franchise in a Box is continuously developing new products for the sector and actively researching trends in franchising. Brand Box is passionate about and specialises in Franchising. We have designed a pain free procedure to establish whether your business is Franchise ready. We develop your unique franchise brand fully, including all the pertinent processes required to become and register a Franchise. Our service enables you to customise all these basic solutions which would otherwise be a time consuming and cumbersome exercise. Brand Box offers a complete Franchise solution, including:

• Franchise Brand set-up: Developing all documentation required to commence the Franchising process. These comprehensive documents include a Business Plan, Prospectus, Disclosure Document, Operations and Procedure Manuals, Branding, Marketing, Public Relations, Communication Solutions, etc.

• Franchise reach: Once your brand is established we would assist you with the Franchisee selection process, raising finance for Franchisees, site selection, setting up of Franchisees and creating brand awareness during the launch of a new Franchisee.

• Recruiting Franchisees: Brand Box assists with the process of attracting suitable new Franchisees and assisting your brand to get a national footprint by means of Marketing, Public Relations, etc.

• Franchise Brand Bible: Creating a brand bible that contains all the marketing necessities from Logo to Clothing, from signage to the store design. The in store marketing is definitely the best marketing media and the most effective. It is also called first line marketing.

• Building your brand: It is an ongoing process. Once your brand is established, Brand Box would guide the Franchisor and Franchisees to maintain and grow the brand in a sustainable manner through the media be it print, radio or television. This includes a yearly marketing plan.

• Brand Box IT: Our specially designed IT system is an essential tool, which enables the Franchisor to monitor the Franchisees’ branding material, sales, documentation and the Human Resources Management.

• Building infra-structure: Franchisor management infrastructure setup is often overlooked as the most important part of roll out. Franchise in a Box has several options to suit each company to roll out the brand effectively and cost effectively according to the budget.

The Team

Robin van Rensburg

BPharm. MBA

082 4511 604

robinvr@iafrica.com

Robin is a recognized franchise solution consultant. His clients include existing franchisors and new business that require franchising. He specialises in family and closely held businesses where he focuses on profitable growth, succession, generational transition and dispute resolution and to assist his clients achieve their retirement objectives. In these situations he works in close cooperation with business owners, boards, other advisors and the management team.

A self-motivated, focused Consultant with a wide range of experience in the Franchising industry, Manufacturing, IT, Retail and Pharmaceutical industry. He focuses his skills on doing effective franchising strategies for companies. Incorporated in franchising is the reengineering of the companies, change management if required, financing, restructuring and marketing initiatives.

He has excellent analytical, design and problem solving skills. His project management experience has demonstrated his leadership skills and ability to manage develop and motivate teams to achieve their objectives. His experience also includes implementing performance breakthrough initiatives.

Robin is experienced in all aspects of financing a business and has been successful in sourcing capital through banks, equity providers, private investors and government funding agencies.

Robin takes a proactive role with his clients - providing advice, counsel, coaching and mentoring services. He has served as interim chief executive officer, chief restructuring officer and as a member of the board of directors.

His franchise consulting have included several franchises including H2O, The Clock Shop, Spice Emporium, LightSpa and several others. Robin’s corporate experience includes businesses ranging in size from venture capital start-ups through to corporate companies.

Cornelius Basson

MSc (Computer Science)

Cornelius is a recognized IT and business strategy specialist - able to generate innovative business ideas. His clients include private and government entities facing challenges regarding new business directions or aligning IT to the business.

Cornelius also specialises in business web presence in the light of the growing ecommerce in South Africa since June 2003. In these situations he works in close cooperation with business owners, boards, other advisors and the management team.

Cor has grown up in the corporate environment and is experienced in all aspects of general management. Cor takes a proactive role with his clients - providing advice, counsel, coaching and mentoring services. His consulting includes a Government Department, Pharmaceutical manufacturer and Internet Online businesses. In the client environment his focus is on maximizing the value of the business for the benefit of the stakeholders.