So, what is business format franchising? Well, put quite simply, it is a business relationship where one party, the franchisor, allows another, the franchise, to operate clones, or copies, of a proven business system in return for initial and ongoing fees.
The franchise is allowed to operate a branch of the franchisor’s business using the latter’s business name and business systems. The franchisor has a duty to select suitably qualified franchise and then train them and support them in operating the business system. The very fact that the business system has already proved to be successful means that the franchise has a much greater chance of establishing a successful business themselves and the franchisor benefits by being able to grow their own network more quickly. Can I Franchise?
Whether you have a business that can, and maybe should, use franchising as the strategy to grow is a question that needs to be asked. We understand this and are happy to help you answer this and provide all of the information you need to help you make the right decision.
As we are only interested in creating long-term business relationships, this means that we have no reason to mislead you, or tell you what you want to hear, but rather make sure that yours is a business that is actually franchise-able (and no, this is not a real word, but you know what we mean!).
Across our network of franchise consultants, we have experience in your business sector, and will certainly be able to give you an honest opinion after an initial conversation. There are many issues to consider, but to help you, you can download our FREE ebook and below we have summarised the main parts of your business you should consider before franchising:
Hopefully now you understand why franchising is such a great way to grow a business, and you know that your business can be franchised.
Now comes one of the most important decisions you are likely to make as a business owner…do you have the right level of commitment to franchise your business?
Launching a franchise requires a great level of responsibility and, with the right leader, business setup and timing, franchising can springboard your business to national or even international success.
The decision to franchise should not be taken before you have carried out a detailed viability study, or franchise development plan, to ensure that the following questions have been fully answered.
This can be likened to having a structural survey done before you buy a property, just to make sure there are no hidden surprises which could end up costing you a lot of money down the line. You could choose not to, but the cost of having it done will ensure you can make a confident decision to go through with the investment.
Most business owners won’t have the know-how or experience or time (or lack all 3 of these!) to undertake a detailed viability study themselves, and even if they did (have all 3), it can put an owner, who is wanting to franchise their business, in a compromising position where they may face challenging their own decision.
For these reasons, you should look to have this viability study carried out by an experience franchise consultancy company which has specialists in your sector.
