The COVID-19 pandemic has challenged businesses in all sorts of ways, and considering the circumstances, it has become very difficult to even think of opening a new business.

First, let’s understand why Franchisee business is preferred?

There’s already a lot of risks involved if you are trying to start your business from scratch and the COVID-19 times have multiplied the risk factor. Thus, it is a good idea to take the franchising route to alleviate that risk.



Franchising comes with a streamlined system and potent support and hence there is always a higher success rate. A lot of people are turning up to franchising for the very same reason during COVID-19 times. Investing in a franchise despite the pandemic is a better idea in comparison to starting something of your own during this difficult time.

Those who are not sure if this is the best time to think of a franchise model should focus on its advantages. Of course, franchising has less operating risk than an independent business, and thus you can stay reassured during this time. To put it out simply, franchising offers more predictability, higher security, and a greater chance at success.

Advantages to your franchisee

Franchising can serve to be a profitable model for almost every venture, especially during COVID-19 times. This is because it offers an array of advantages such as:

Reputation

The customers already have an idea about the products and services if the franchise is famous. Hence, you can expect additional business even during the pandemic because of the franchise’s positive reputation.

Financing

If you wish to avail a loan to kick-start your business, there is high probability to get loans from the bank as franchise businesses are easier to finance.

Limited Risks

The franchise business has already passed that phase of trials and hence there’s less risk associated with the business. Limiting the risk is everyone’s priority during COVID times.

05 Key Considerations before Franchising your Business



You can grow your business utilizing "other people's money" if you take the franchising route. Nevertheless, in case you want to know about how to set up franchise business, here are the 5 key steps or the complete guide to set up franchise business:

Step 1: Financial Model

Financial feasibility is the first step in the franchise process flowchart. The financial feasibility of both franchisees and the company should be taken care of and hence financial models for both parties should be developed.

Step 2: Operations Manual

The second step is Operations feasibility wherein you need to consider aspects such as purchase, accounts, sales, HR, IT, marketing, Admin and Management. The development of standard operating procedures for all of these departments is a crucial activity.

Step 3: Legal Agreements

This step takes care of the legal part involved in the franchise business. As a part of legal feasibility, franchisor should ensure safety of the brand name and business.

Step 4: Support Your Franchisee

Franchisors should lend support to the franchisee and this support can come in any form such as recruitment support, operational support, training support including software training, audit support etc.

Step 5: Marketing Support to the Franchisee

COVID times is a very difficult phase for anyone thinking of starting a new business. Hence, franchisors can offer marketing support so that there would be ease in getting the customers for the franchisee.

Why YRC to build your franchise plan?

At Your Retail Coach, we are always by your side as your franchise business consultant. From requiring any help with strategy formation to developing the roadmap, we can assist you during franchise model development. YRC will assist you to create the financial model, draft the legal agreements, prepare SOPs and set up the audit process.

Our team of franchise experts will understand your business as well as your requirements to create an effective expansion strategy. At YRC, we realise the value of a franchise plan as, without this, a person can face extreme losses. Hence, we focus on franchise setup checklist that involve the expenditure required and turnover to revenues and pricing to create a franchise plan for our clients.

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