The right strategy!
The plan….
By failing to prepare, you are preparing to fail.
It is good for a franchise brand to prepare carefully when they want to roll out their franchise brand in another country. If a master or business partner is considered before entering another market, we believe the preparation should be done extensively.
Countries have different cultures with different views on life and sometimes different solutions to the same problems. Especially when it comes to how people in an organisation work together. The same goes for the cultural differences in legislation and legal preparation. Every country has its standards regarding the pricing policy of the products and how the fee structures are assessed. A proper and well-prepared strategy combined with a smart plan to enter the Dutch market is necessary.
What you need to do: Build A Good plan:
Preparation
In the build-up to the right plan, assessing whether you are completely ready for an international step, in general, is essential. We strongly suggest that you partner with a Dutch full-service franchise consultancy.
Ensure your preparation is checked in line with the local economy, review all (legal) documents, and consider the importance of labour laws in conjunction with the franchise. The Dutch are very open to entrepreneurship, so keeping your franchise organisation focused can take time and effort.
How can Franchise Match Help?
Franchise Match has much 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 to determine the critical element for your growth in the Netherlands. Franchise Match provides the research needed to develop this plan.
The report provides insight into vital commercial figures. It paints an image of the market, including consumer labour, 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 in 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
Signification;
Pricing
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, and over-stress your strengths. The effect will be more income and liquidity for the entire organisation.
Dutch culture will influence your organization 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, collaboration through franchise construction is a significant industry in which more than thirty billion euros in turnover are now realised.
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 what kind of organisation 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.
Dutch Law
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 labour 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 organisation and build the franchise brand in the Netherlands, we can advise him to hire a specialised franchise recruitment organisation.
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.
Our advice for the right business partner will be that the partner wants to work with an organisation 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.
The financial data of the franchise is essential.
Your strategic plan can make it easier to find financing. It will 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 to address if Sharefunding or Crowdsharing becomes an option to enable the financial underpinning of growth, from either the formula or the franchisees.
The right funding?
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 an intelligent 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, which 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
Location Strategy
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 optimise 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;
The right location strategy!
Location strategy is an essential part of a franchise brand’s success. We advise our formulas to use this smartly. To link location strategy with the data harvesting strategy, which benefits the marketing goals.
We can deploy brilliant solutions for both location strategy and data harvesting marketing. The customer data from the 1st location can be used smartly for the 2nd location. It makes finding the correct city, street, and commercial environment easier.
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.
