What you need to do: Build A Good plan:
In the build-up to the right plan, it is essential to start with assessing whether you are completely ready for an international step in general. We advise you strongly to enter a partnership with a Dutch full-service franchise consultancy.
Make sure your preparation is checked in line with the local economy, review all (legal) documents, and do not underestimate the importance of labor laws in conjunction with the franchise. The Dutch are very open to entrepreneurship, so keeping your franchise organization focused can be daunting.
How can Franchise Match Help?
Franchise Match has a lot of experience supporting foreign franchise brands when they come to the Netherlands.
We have developed a 4-building block methodology that can help every franchise brand start and growth in the Netherlands.
Strategic & operational support
Strategic support: together with you, we work out the strategic plan, in which we determine what the key elements will be for your growth in the Netherlands. Franchise Match provides the research needed to develop this plan.
The report provides insight into the vital commercial figures. It paints an image of the market, including consumer labor, franchise, and other relevant markets, for you
Operational support: Franchise Match provides the correct commercial presentation of the franchise brand in Dutch. In addition, we can provide active support with finding the right person! Franchisees with a winning attitude who are local and passionate about what they do will reap the rewards for years to come.
Foundation Block A – The Plan.
There are several parts that a franchise brand would do well to have prepared.
- Marketing & royalty Fee structure
- The price level of the products
- Working method that determines the Dutch Franchise Act
- Financial data for the Master – Franchisee
- Well-thought-out profile of the Master – Franchisee
- Franchise Agreement
- P.I.D Pre-contract information document
- Market entrance plan
- Insight into Dutch Business Culture
- CRM for community building
Despite common beliefs, the Dutch are not cheap. They are willing to pay for quality and commitment. Franchise Concepts that have started in the Netherlands unprepared see low cost as the way to enter the market, forgetting to make quality the issue rather than price.
Our most important advice includes words like sustainability, quality management, and more, over-stress your own strengths. The effect will be more income and liquidity for the entire organization.
Dutch culture will influence your organizations in various ways.
The average Dutch entrepreneur is opinionated. The Dutch are pleased to share their opinion, which can be construed as stubborn and sometimes even harmful. However, listening to them will help you identify opportunities often. A positive entrepreneurial spirit drives it.
On the positive side, the collaboration through franchise construction is a significant industry in which more than thirty billion euros in turnover are now realized.
Foundation Block B; The Right People on board
Finding the right person for the franchise is more than having a good franchise and an idea of what country to start in. It requires careful preparation, where the financial aspects are worked out. Know upfront what kind of organization the Master franchisee needs to properly develop the brand, and understand what needs to be done to make the most of the Dutch market and culture.
The legal matters and agreements must be adapted to how they must be performed according to Dutch law. And it is wise for a franchise brand to be well-prepared for the Dutch business culture, where hierarchy and authority are not essential elements in a collaboration.
Understanding the market before talking to potential franchisees, masters, developers, or multiple unit franchisees will help you identify the right entrepreneur.
Knowing about essential legislation, competition, price levels, economic labor market, etc. make you an excellent speaking partner and helps you to identify the right (Dutch) entrepreneur
The right people!
When the right business partner is on board and has to start his organization and build the franchise brand in the Netherlands, we can advise him to hire a specialized franchise recruitment organization.
The knowledge often goes beyond recruiting, which is precisely the case with Franchise Match. Then the business partner can also use Franchise Match support for other challenges it encounters.
Our advice for the right business partner will be that the partner wants to work with an organization on the growth of the franchise. That he has set up sales and marketing. And our advice to the business partner will be to work with franchisees who want to think and work at Multi-Unit locations. We know from experience that this is the most sustainable solution for both the franchisor and the franchisee.
Foundation Block C; Funding
The development of the franchise brand requires financing that enables the expected and intended growth of locations.
Financial data of the franchise is necessary and essential.
Your strategic plan can make it easier to find financing. It will certainly also be necessary to consider the return on the funding and the value structure of the franchise.
If we handle customer data well from day 1, this can become valuable in the financing process. We can then build a community that we can address if Sharefunding or Crowdsharing becomes an option to enable the financial underpinning of growth. From either the formula or the franchisees.
Liquidity is always important to be able to properly execute the growth of a franchise brand. It is good for both the franchisor and the franchisee. In addition to liquidity, we believe that commitment is a significant part of growth.
When we bring liquidity and commitment together, you can realize a smart solution for this with Sharefunding. We see 2 solutions, 1 is that the franchisor gives the franchisees the opportunity to buy shares of the organization of his franchise brand, this will benefit the commitment.
Secondly, as the franchise, you can use its smart data harvesting strategy to build a community of customers & fans that you can give the opportunity through shares to become shareholders of the franchise brand which for the franchisor or even for the franchisee equity and growth capital can mean.
Foundation Block D; The place
All elements described in the earlier building blocks come together best in this block. Here, your business partner’s local knowledge helps you build a solid location strategy for the rollout. This should be a data-driven approach, again based on your strategic plan.
Used cleverly, the location strategy supports the commercial results but helps find the Dutch franchisees, develop the brand, and optimize sales. We recommend using the demographic data of each location to better place a new location with more data. Harvesting customer data makes the location strategy smarter and, at the same time, is a good boost of information we can use for finding the right new location.
preparation is Key;
What do the four foundation blocks need to form a strong collaboration?
Good marketing communication is what they need.
We are sure that you need to build on the four foundation blocks with solid marketing communication. Marketing is the cement that brings the four foundation blocks together.
Developing the marketing communication for the franchise brand for the Dutch market, both online and offline, is essential. Knowing how you can best approach the business partner in the Netherlands.
Information and presentations are essential to have good conversations with the candidates.
As we see it, to present the franchise well, the financial vital figures must also be worked out smartly. Economic simulations of turnover and returns based on existing data are part of this.