Module 1 Know your customer and market 4 hAnalyse
Every sound business in franchise business begins with one clear customer and one clear problem. In São Paulo and the wider state, demand is real but crowded, so a small, well-described customer group wins before a broad one.
- In franchise business: Test the model in at least two outlets before selling it.
- Write the customer in one sentence: a franchisee and the customer. Add the place, the moment of need and what they use today.
- List five rivals or substitutes within reach. For each, record price, strength, weakness and how people reach it.
- Interview at least eight real customers with open questions. Record exact words, not your summary.
- Count the market in units: how many outlets could one area buy in a month? Use two public sources and your own count, then take the lower figure.
- Choose one first segment and say why the others wait.
Worked example. Weak: 'Everyone needs a repeatable outlet under a shared model.' Strong: 'Our first customer is a franchisee and the customer within 8 km of the centre, who today pays R$ 57.200 per outlet and complains about delay. We target 2 outlets a month by month three.'
Second worked scenario. Scenario: ten customers are interviewed for franchise business. Seven say price, two say speed, one says trust. Question: which first message do you write, and which interview record backs it? Model answer: lead with the outlet price and speed promise, keep trust proof as the second line, and cite the seven price answers by date.
Activity. Write the one-sentence customer, a five-row rival table and eight interview records. Share them with a peer for a challenge round.
Standard to meet. Define a specific customer, build a rival table with prices, and trace every claim to an interview or a source.
Module 2 Rules, registration and data duties in Brazil 4 hUnderstand
Brazil asks every trader to be visible and accountable. Know which register, tax regime and sector rules apply before the first sale, and check each against the current official text.
- In franchise business: Franchise offers need a clear disclosure document with fees, duties and term under Brazilian franchise law.
- Choose a legal form: micro-entrepreneur (MEI) only if your activity appears on the official MEI list, or a company registered with a CNPJ. Regulated activities need their sector authorisation first. Check the current limits and lists on the official portal.
- Learn the tax regime that fits your size and write down which taxes you will collect and pay, and when.
- Find the sector rules for franchise business: licences, inspections, professional registers. List each with the office that issues it and the renewal date.
- Personal data of customers falls under Brazil's data protection law (LGPD). Collect only what you need, say why, keep it safe, and name who answers questions.
- Consumer law gives buyers clear rights on information, returns and complaints. Put your terms in plain Portuguese.
Worked example. Checklist for a new franchise business trader: 1) legal form (CNPJ, or MEI only if your activity is on the official list); 2) city operating licence; 3) sector licence or register; 4) tax set-up; 5) privacy notice; 6) written terms. Each has an owner and a date.
Second worked scenario. Scenario: a neighbour says registration can wait until the first R$ 260.000 of sales. Question: what do you do? Model answer: do not delay; write the compliance table first, confirm the register, tax and sector licence with the official office, and start only where the table shows no open blocker.
Activity. Build your own six-line compliance table for your first location. Mark what is done, what is pending and who confirms it.
Standard to meet. Cite an official source for every line, assume nothing, and date every pending item. Local law always wins over this course.
Module 3 Design the offer 4 hCreate
An offer states what the customer gets, how well, by when and at what price. For a repeatable outlet under a shared model, the offer must make the quality visible and the next step easy.
- In franchise business: Package: brand, manual, training, supply, support.
- Describe the core offer in three lines: what is delivered (a repeatable outlet under a shared model), the standard it meets, and the time it takes.
- Add one proof for each promise: a sample, a test result, a guarantee or a customer record.
- Price from cost upward and from customer value downward, then pick a price inside both.
- Write a simple one-page terms sheet: what is included, what is extra, how to cancel.
- Create two options at most, so choice stays easy.
Worked example. Offer: 'A repeatable outlet under a shared model, delivered within agreed time, checked against a written standard, price R$ 52.000 per outlet. Proof: a dated record the customer can check and sign. Changes or cancellation by written agreement before work begins.'
Second worked scenario. Scenario: a customer asks for a discount from R$ 52.000 to R$ 46.800 per outlet. Question: decide with numbers. Model answer: contribution falls from R$ 14.000 to R$ 8.800 per outlet; offer an extra of value (for example faster service) before cutting price, and accept only if the lower contribution still clears break-even.
Longer notes. Define the opening package a franchisee buys for one outlet: site checklist, fit-out materials, equipment, training and launch support. Write what the brand supplies and what the franchisee must pay separately. Build the package cost from supplier quotes and your own support days. Test the numbers with a pilot outlet before you sell more. Ask a lawyer to review the disclosure document and contract terms before you present the offer to a candidate. Run the package past two existing franchisees and ask what surprised them in the first month. Their answers often reveal hidden costs, such as signage or permits, which should be listed in your document.
Extra worked example. One outlet package is sold for R$ 52.000. Variable cost is R$ 24.000 for fit-out materials, R$ 9.000 for equipment and R$ 5.000 for training and opening support, so R$ 24.000 + R$ 9.000 + R$ 5.000 = R$ 38.000. Margin is R$ 14.000, or 26,9 percent. Head office cost is R$ 15.000 a month, so break-even is 15.000 / 14.000 = 1,07, rounded up to 2 outlets. The itemised costs are worked-example figures, not market data. Four openings leave R$ 41.000 after head office costs.
Activity. Write the offer card, the proof list and the terms sheet. Test them with three customers and note every point where they hesitated.
Standard to meet. Check that promise, proof and price are consistent, fit the terms on one page, and record three customer reactions.
Module 4 Run the work step by step 5 hApply
Good operations make results repeatable. For franchise business, write each step so a new person could follow it on their first day, and measure each step.
- In franchise business: Operations manual covers every daily task with photos and times.
- Map the process from first contact to paid and closed. Typical stages: enquiry, quote, preparation, delivery of the outlet, check, payment, follow-up.
- Name the key resource at each stage: an operations manual. Note what happens if it is missing.
- Write a one-page standard procedure per stage: who, what, tool, time, record.
- Choose three measures: speed, quality (errors per 100) and customer rating. Review them every week.
- Fix the cause of a defect, not the symptom. Ask 'why' five times and record the answer.
Worked example. Stage record: 'Prepare. Owner: lead. Time: 30 min. Tool: checklist. Record: signed sheet. Defect found on 1 of 2 outlets last week; cause: missing check on an operations manual; fix: add check at start, review next Friday.'
Second worked scenario. Scenario: of 4 outlets last month, 1 had a defect traced to an operations manual. Question: what is the defect rate and what is your first action? Model answer: about 25 defects per 100; stop the cause (add a check at the start), correct affected customers, log the cause, and re-measure next week.
Activity. Draw the process map and write procedures for the two riskiest stages. Run each once and time it.
Standard to meet. Write procedures a stranger can follow, record weekly numbers for each measure, and trace one defect to a root cause.
Module 5 Safety, quality and risk 4 hEvaluate
The most serious risk in this field is a model that does not travel. A calm, written risk routine protects people first and the business second.
- In franchise business: Quality drift between outlets is the risk; audit with a scorecard.
- List ten things that could go wrong. Score each for how likely (1 to 5) and how serious (1 to 5). Multiply and sort.
- For the top five, choose a control: remove the hazard, replace it, guard it, train people, or use protective gear, in that order of preference.
- Write who does what in an emergency, and rehearse it once a quarter.
- Keep an incident and near-miss log. Near-misses are free lessons.
- Check that insurance and legal duties match the risk you actually carry.
Worked example. Risk row: 'Hazard: a model that does not travel. Likelihood 3, severity 5, score 15. Control: written check before each outlet, trained staff, log sheet. Owner: site lead. Review monthly.'
Second worked scenario. Scenario: a near-miss occurs: a model that does not travel nearly happened but no one was hurt. Question: what do you do in the next 24 hours? Model answer: make safe, record the event, ask the five whys, add or tighten one control, brief the team, and set a review date; near-misses count as lessons, not blame.
Activity. Build a ten-row risk register and a one-page emergency plan. Run a ten-minute drill with a peer and note two improvements.
Standard to meet. Rank controls by preference for the top risks, run the drill, and start the log. Where a regulation applies, follow the official rule.
Module 6 People, skills and service 4 hApply
People deliver the promise. Define roles, train to a standard and give feedback in the open.
- In franchise business: Train franchisees before opening and monthly after.
- Write a role card for each person: purpose, five tasks, the standard for each, and who to ask for help.
- Train by showing, doing with support, then doing alone with a check. Record sign-off per task.
- Set service rules for answering customers: reply times, tone, how to apologise and fix.
- Hold a ten-minute team check each day: yesterday's problem, today's plan, one risk.
- Build a growth path: what a new person can do in week 1, month 3 and month 12.
Worked example. Training record: 'Task: process a complaint. Shown 2 May; done with support 4 May; done alone 8 May, checked: apology, fix, follow-up call. Signed by lead.'
Second worked scenario. Scenario: a new hire completes training but a customer complaint shows a skipped step. Question: whose gap is it? Model answer: first the system: check the role card, the training sign-off and the checklist; then coach the person and fix the document so the step cannot be skipped.
Longer notes. Train each new manager on the operations manual before opening day, using the checklists for opening, service, stock and cash. Send a field trainer for the first week, then visit monthly. Score every outlet on the same audit sheet: cleanliness, speed, product quality and records. Practise how to give hard feedback calmly. Keep a training log for every employee, and make sure each outlet's staff contracts follow the local employment rules. Record short videos of key routines, such as opening and cash closing, and keep them with the manual. New managers can review a clip when the trainer is away, and standards stay the same across outlets.
Extra worked example. A field trainer day costs R$ 600. Of 4 new outlets, 1 needed a second visit of 2 days, which is R$ 1.200. After a better opening checklist, only 1 of 8 needed one, so the expected cost per 4 outlets is R$ 600. Saving is R$ 1.200 - R$ 600 = R$ 600 a month. The delay days and rates are worked-example figures, not market data. Writing the checklist took 2 trainer days, R$ 1.200, so it pays back in 2 months.
Activity. Write two role cards and a training plan for one new hire. Role-play a hard customer conversation twice and review.
Standard to meet. Write role cards with measurable standards, show the sign-off steps in training, and write the service rules in plain words.
Module 7 Money: cost, price and break-even 5 hAnalyse
A business lives or dies on a few numbers. Know your contribution per unit, your fixed costs and the volume you need.
- In franchise business: Unit economics: investment, royalty, payback in months.
- Contribution per outlet = price minus variable cost. Fixed costs are paid whether you sell or not.
- Break-even units = fixed cost divided by contribution. Plan to pass it by a safe margin.
- Make a 12-month cash plan. Cash timing matters as much as profit: customers may pay late, suppliers may want money first.
- Keep money for business and money for the owner apart.
- Test the plan: what if sales fall by a quarter, or cost rises by a tenth?
Worked example. Worked example, all figures in reais: price R$ 52.000, variable cost R$ 38.000, contribution R$ 14.000 per outlet. Fixed cost R$ 15.000 a month. Break-even = R$ 15.000 / R$ 14.000 = 1,07, so 2 outlets a month. At 4 outlets a month, profit = R$ 14.000 x 4 - R$ 15.000 = R$ 41.000. These are teaching figures that belong to this example only; later examples and the case study use their own figures. Use your own.
Second worked scenario. Scenario: sales fall to 3 outlets a month. Question: what is the monthly result? Model answer: R$ 14.000 x 3 - R$ 15.000 = R$ 27.000; compare with break-even of 2 outlets and decide whether to cut fixed cost or raise volume first. Teaching figures only.
Activity. Build your own table: price, variable cost, contribution, fixed cost, break-even and a downside case at 75% of sales. Show it to a peer or mentor.
Standard to meet. Calculate correctly, give every figure a source or mark it as an assumption, and show a downside case.
Module 8 Grow, measure and renew 4 hEvaluate
Growth should follow proof. Measure, learn, then add; and keep returning to the customer.
- In franchise business: Grow only where outlets meet the scorecard.
- Pick one growth lever at a time: new customers, a higher repeat rate, a better price, or a new offer.
- Set one measurable target for 90 days, such as 'raise repeat customers from 20% to 30%'.
- Ask each customer how they found you, and record it. Spend more where the record shows results.
- Review monthly: numbers, defects, complaints, cash. Write three decisions each time.
- Plan the renewal of licences, equipment and skills a year ahead.
Worked example. 90-day plan: 'Lever: repeat customers. Action: follow-up call after every outlet. Target: repeat rate from 20% to 30%. Check: weekly count. Review date: day 45 and day 90.'
Second worked scenario. Scenario: you can add 2 outlets a month by one of two levers: a follow-up call to past customers or a price rise of R$ 5.200 to R$ 57.200. Question: how do you choose? Model answer: test the cheaper reversible lever first (the call), measure for 30 days, and only then try the price change, so you can tell which one worked.
Longer notes. Track every outlet on the same sheet: opening date, monthly sales, labour share, waste, audit score and customer comments. Compare units by location to find what drives results. Hold a quarterly meeting where the best outlet shows what it does. Update the manual after each lesson. Keep a pipeline of candidate sites and franchisees, and say no to weak sites. Review package costs against supplier prices every quarter. Compare outlets on the same four measures every month and visit the weakest one first. Share what the best outlet does in simple terms, because copying a proven routine is the point of a franchise.
Extra worked example. This month you opened 4 outlets. Revenue is 4 x R$ 52.000 = R$ 208.000 and variable cost is 4 x R$ 38.000 = R$ 152.000. After R$ 15.000 head office cost, profit is R$ 41.000. A pipeline of 10 candidate sites converts 4 into signed outlets, or 40 percent. Treat the what-if figures as a worked example, not market data. If a fifth outlet opens, profit is 5 x R$ 14.000 - R$ 15.000 = R$ 55.000.
Activity. Write a 90-day plan with one target, three actions and a review date. Present it in five minutes and take questions.
Standard to meet. Set a measurable, dated target, break the actions down small enough to start this week, and put the review date in the calendar.