Lesson 5: Business Strategy and Planning

A plan to implement a company's vision and goals over time.

Describes a company's foundations, owners, capabilities, industry, revenue generation, and financial projections.

Defines future goals, targets, and strategies to achieve them.

A manager's ability to envision the company's strategic direction and motivate others towards that vision.

A business model where franchisors and franchisees collaborate towards a shared goal.

Visionary thinking, adaptability, communication skills, commitment to training, empathy, resilience, and attention to detail.

Lead by example, continuous improvement, wise delegation, long-term planning, customer focus, data-driven choices, and networking.

Upper-level management, but also other management levels, are crucial components for a successful business.

A concise overview of a franchise opportunity, typically 1-3 pages, covering the company's history, unique features, market overview, leadership team, and funding needs.

The target audience for a franchise's products or services, considering their preferences, motivations, and market trends that influence their purchasing decisions.

The ideal profile of a potential franchise owner, including their experience, goals, and financial resources, as well as factors influencing their franchise choice.

The estimated total potential customer base for a franchise's products/services and the potential number of franchisees in a specific region.

The plan to reach and attract both franchisees and consumers, including techniques, promotional materials, and referral sources.

The financial and operational success of existing franchisees, taking into account profitability, factors influencing performance, and any measures taken to improve results.

How technology is utilized to enhance franchise operations, from communication and training to customer engagement and data analysis.

The collaborative relationship between the franchisor and franchisees, involving shared goals, support, and communication, ensuring mutual benefit and success.

Effective franchise leaders act as mentors, coaches, and show compassion towards their franchisees. They continuously learn, welcome change, and prioritize the success of the entire franchise system.

Franchise leaders guide and support franchisees like coaches, providing resources, training, and encouragement for their success.

Franchise leaders prioritize success for both strong and struggling franchisees, knowing collective success benefits everyone.

Franchise leaders continuously learn about the business and franchising industry to make informed decisions.

Franchise leaders embrace change, understand that the franchise system needs to evolve, and lead the implementation of these changes.

Franchise leaders prioritize the success of their franchisees, recognizing that their success directly reflects the franchisor's success.

Beyond collecting franchise fees, a successful franchisor provides ongoing support to franchisees, fostering their success and ensuring long-term growth.

A successful franchise relationship extends beyond financial transactions, offering value through training, resources, and ongoing support.

The core of franchising is about building strong relationships between the franchisor and franchisees, based on mutual trust and support.

Franchisees expect the franchisor to be dedicated to their success, continuously improve the franchise system, and communicate effectively.

Finding and keeping talented staff for a franchise system can be challenging, especially for new companies.

Early-stage franchisors can attract top talent by offering unique benefits like ownership options, flexible schedules, and a relaxed work environment.

Franchisors should emphasize growth potential, leadership style, training opportunities, and work-life balance during recruitment.

Franchisors need employees with strong communication skills, flexibility, responsibility, positive attitude, and high energy.

Franchisors should have structured recruitment procedures, clear job descriptions, and employee input to ensure clear expectations.

Franchisors should work with new employees to create clear job descriptions and ensure their expectations are met.

Describes the initial phase of a franchise system, where rapid growth and constant change are common. This stage is characterized by evolving job roles, adaptability, and a need for flexible employees.

An Advisory Board provides non-binding guidance and advice, while a Board of Directors oversees the company's strategy and financial performance.

The Board of Directors sets the general policy and direction for the franchise system, which underpins the growth plan.

These responsibilities include Duty of Care, Duty of Loyalty, and Duty of Fairness, all of which are crucial for ethical and responsible governance.

This responsibility requires directors to prioritize the corporation's interests over their own or any other person's.

Directors have a responsibility to exercise diligence, care, and skill while making decisions, ensuring the corporation's best interests.

Directors must act fairly and impartially towards all stakeholders, including employees, investors, and customers.

Key strategies include: Following established systems, hiring and retaining talented staff, delegating tasks, and avoiding micromanagement.

The board must act in the best interests of all shareholders, not just the board and officers, during takeover attempts or offers to purchase the company.

A board member providing goods or services to the corporation shouldn't participate in decisions regarding their own transactions to prevent conflicts of interest.

A board decision requires approval from a disinterested group of members who have received full information and disclosures about the transaction, especially when a board member is involved.

Periodic questionnaires for officers and directors are crucial to identify potential conflicts of interest and ensure ethical practices.

Removing an ineffective or problematic board member, despite their reputation, is essential for the company's success.

Board members opposing an action should vote against it or abstain and file a written dissent to ensure transparency and accountability.

Maintaining detailed minutes of all board meetings and records of decision-making information is crucial.

The board's primary responsibility is to ensure the company's actions align with legal requirements and fulfill its fiduciary duties to shareholders.