We are an aggressive company looking forward to commencing operations for Supply Chain & Logistics in the Food Business starting from the 2nd fortnight of September 2013. We would like to request anyone to kindly suggest or assist us with the format for the Franchise Agreement.
From India, Mumbai
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Dear Panikars,

I have a fundamental difference of opinion with you. Worldwide, franchise models have succeeded provided their systems and processes were very strong and improved over time.

Starting Operations in SCM and Logistics

In your case, you will begin operations in SCM and Logistics next month. Ideally, you should proceed with your operations, train your staff on your systems and processes, and understand the intricacies and challenges of the business. During your operations, your staff will make many mistakes. This will be due to either improper processes or an inability to follow the process. You should make an inventory of their errors and further improve your processes.

Evaluating and Improving Systems

Have you measured your systems and processes? What efforts have you made to improve them?

Franchise Model Considerations

When you opt for the franchise mode, you should have a ready-made kit on how your operations should be conducted. You should ensure that the franchisee recruits and further trains staff on your SOPs. There should not be any variation in the operations of two or 10 or 100 franchisees. Uniformity in operations is the hallmark of the success of a franchise model. McDonald's is a classic model.

Growth and Development Analogy

A one-time sapling is the tree of the future. Nurture this sapling and allow it to grow at its own pace. When it becomes a tree, you will find branches on the tree. In your case, you want branches for your sapling right from day one. I hope the weight of the branches does not collapse the sapling itself!

My views are forthright as I conduct training on strategic planning and strategic leadership. I know of at least one case similar to yours where the company failed miserably when they went for the franchise model right from day one. Hence, the radical views.

Thanks,

Dinesh V Divekar

From India, Bangalore
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