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There is one significant problem when creating franchises.
This problem is that companies produce their franchises without any contact with the future consumer, that is, the potential franchisee. Franchises are created by franchise packagers at the direction of the founder, at the sole discretion of the founder. That is, as a result, a franchise product is rolled out onto the market, which no one needs, and at best, is a copy of another franchise and delays the franchising requests of some large franchise.

How to avoid this?

Apply a product approach and develop a franchise taking into account the interests of the consumer.

In this article we will look at the process of developing a franchise product. We will list the main stages of development and provide tools that can be used at the stage of developing a franchise product.
Franchise development is, of course, a product development process. By creating a franchise, you are absolutely creating a new product: for a new target audience, with new advantages, cost, and sometimes even a name.

The differences between products are very easy to see. For example, you own a coffee shop and you satisfy the need of office employees for a boost of energy in the morning. Your coffee shop franchise will satisfy completely different needs of a completely different audience. Franchises are purchased by beginning entrepreneurs or entrepreneurs from other areas of business to launch a new profitable business or expand an existing business. And for a franchise buyer, completely different criteria are important than for a coffee lover. The franchise buyer pays attention to the turnover, profit, expenses of the enterprise, brand strength, history of openings and closings of points within the network.

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Stages of creating a franchise

Let's look at the stages of franchise development and describe the actions and tools that occur at each stage.

Strategic stage

This stage should precede the development of the franchise itself and should answer the questions: why does our company need a franchise? What goals do we pursue when launching a franchise? What alternative paths to our goal exist besides the franchising path? We will not stop at this stage, because if we have arrived at the development stage, it means that we have received some kind of justification for the franchising path. We will not stop at this stage, because if we have arrived at the development stage, it means that we have received some kind of justification for the franchising path.


This is a stage that is very often neglected by entrepreneurs who want to develop their network through franchising. Very often I hear from entrepreneurs "I am more for an experiment than for your research." In the case of franchising, this is an experiment worth millions, from the loss of which research can protect.
At the research stage, we should get a detailed answer to two questions:

  • What is the value and strength of our company in the opinion of consumers?
  • What kind of franchise do potential franchisees want to get?

As a result of the research, the advantages of the company should be transferred to the franchise program, and the attributes of a successful franchise should be included in this program.

How to conduct research is not so important, it can be telephone interviews, face-to-face in-depth interviews, focus groups. It is important that this stage is conducted and you hear the voice of both audiences of consumers. And it is on the voice of the consumer that you build your franchise.

In today's practice, franchises are described by consultants according to a clear technical task from the founder. The founder is usually guided by his own views on a successful franchise, as well as the desire for quick profit. It is not profitable for consultants to argue with the customer, and thus a very ineffective tandem is obtained, which develops a franchise "for the drawer", and not for future franchisees.

List of requirements for a business to become a franchise
Concept Development

Now you know exactly what the consumer needs, and you can move on to the concept development stage. At this stage, you need to determine what your franchise program should be like in order to максимально отвечать целям вашей компании и соответствовать ожиданиям конечного потребителя и аудитории франчайзи.

At this stage, the voice of the consumer is осмысление, analyzed, and a prototype is created that is able to follow this voice with maximum accuracy.

It is important to maintain a balance here, considering the interests of both parties, because there is a great temptation to create a program "for the founder" and only for his interests and his benefit. A balanced model is the key to rapid network growth.

Product Development

At this stage, the direct elements of the franchise program are created: the franchise package, checklists, guides, policies, instructions, templates. All objects and carriers that correspond to the strategic goals of your company and the expectations of the consumer and franchisee audience. This stage is obviously the longest, and it is here that all the franchise documentation is created. However, the quality of the product depends to a greater extent on how the preparation was carried out and how much information was collected at the preliminary stages.

Product Launch

The release of a franchise is a very important process. The speed of network growth in the early stages depends on how the franchise is launched and how this launch is covered in the media: either it will be a slow-moving story or explosive growth.

Product Update

The process of change is a cyclical process. The founder of the network not only constantly modernizes and improves his main product (coffee in our example), but also must constantly improve the franchise program so that it increasingly meets the needs of franchisees and brings as much value as possible to franchisees.

This is what the path of franchise product development looks like. Following the described steps guarantees the creation of a franchise created for franchisees, taking into account their wishes and needs instead of "packaging" a franchise simply because it is fashionable.