A quick internet search will reveal the term “franchise package” to be used in a variety of ways by different business entities. Some use it to refer to the documents initially given to those who are interested in learning about a particular franchise company’s franchising opportunities and applying to them. These may include a description of the franchising opportunity, a list of the factors determining the eligibility of potential franchisees, a form to indicate interest and apply to become a franchisee, and a form authorizing the franchisor to do a background check on the applicant.
Further examination of the term “franchise package”
Others may use the term to refer to the documents made available to those who are successful in applying to be franchisees. They include the franchise agreement and any other documents determining the terms of the franchise and governing the relationship between the franchisor and franchisee. These documents include a franchise operations manual, which informs franchisees about all dimensions of operating their franchises. They also include a franchise disclosure document, which discloses to franchisees the rights to which they have access under the franchise agreement, and their obligations towards the franchise company. A franchise package can also include deposit agreements, multiunit agreements, financial statements, account assumption agreements and software license agreements.
The term “franchise package” is also used by some to refer to what one gets upon signing the franchise agreement and paying the franchise fee. This could include equipment relevant to running the franchise, training, and access to certain products and services. For instance, an ice-cream kiosk franchise package could include a business plan, a marketing plan, an operation guide, exclusive rights to a protected territory, storage cabinets, a machine for storing and dispensing ice cream, storage space and dispensers for various toppings, brand marketing, signs, menus, workstations, etc.
Whichever understanding of the term “franchise package” you encounter, you will find that it describes a franchisor’s overtures towards franchisees and potential franchisees. Thus, the franchise package gives applicants and franchisees alike insight into the franchise company’s degree of professionalism and its level of organization. A comprehensive package, incorporating all the necessary information clearly indicates that the franchise company is thorough and worthy of further consideration. It may also reveal that the company has been in the franchising business for long and has had the time to iron out the irregularities in its process. The better put together a package is, the more confidence that applicants and franchisees are likely to have in the franchise company. Thus, putting a package together should be seen as an opportunity to engage in implicit PR for the franchise company.