The success or failure of a catering brand, how to formulate a franchise policy and model?

Mondo Finance Updated on 2024-03-07

Formulating franchise policies and models for F&B brands is an important part of ensuring the successful expansion and sustainable development of the brand. The following is a basic framework for the formulation of a catering brand franchise policy and model:

Franchise policy. 1.Franchise fees.

Franchise Fee: A one-time payment to receive brand rights and initial technical support.

Annual or management fee: Paid on a regular basis to maintain brand relationships and technical support.

2.Franchise conditions.

Qualifications: such as relevant experience in the catering industry, financial strength, etc.

Location: The location of the store needs to meet the brand requirements, usually in the bustling business district or the most dense area.

Store requirements: The size of the store, decoration style, etc. must meet the unified brand standards.

3.Contract Duration and Renewal.

Clarify the duration of the contract and the conditions for renewal.

4.Brand Usage Rights.

Franchisees enjoy the right to use the brand during the contract period, but they are not allowed to change the brand image without authorization.

5.Non-Disclosure Agreement.

Franchisees are required to comply with the brand's confidentiality requirements and are not allowed to divulge trade secrets.

Franchise model. 1.Direct chain.

The brand directly manages the store and has full control over all aspects of the store.

2.Franchising.

The brand authorizes the franchisee to use the brand in a certain area, and the franchisee needs to operate in accordance with the brand requirements.

3.Cooperative operation.

The brand and the franchisee jointly invest in the operation of the store, share the risk and share the income.

4.Escrow operation.

The brand provides store management and operation services for franchisees, and franchisees pay management fees.

Support & Service.

1.Technical support.

Provide technical support and training in dish production, store management, etc.

2.Marketing support.

Provide support in marketing strategy, event planning, etc.

3.* Chain support.

Provide stable food ingredients** and sourcing support.

4.Operational guidance.

Regularly inspect stores and provide operational guidance and advice.

Risk management and exit mechanisms.

1.Risk management.

Establish a risk early warning and response mechanism to deal with market changes and operational risks.

2.Exit mechanism.

Clarify the contract termination conditions and exit process to ensure the rights and interests of both parties.

Legal Compliance. Ensure that the franchise policy and model comply with relevant laws and regulations and avoid legal disputes.

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