Franchising or licencing a new business that you have purchased or are thinking of purchasing

If you are thinking that it may be a good idea to franchise a new business you need to approach this very carefully.

A Franchise will only work if you have a solid profitable business that can be duplicated. This means that you need to have systems and procedures that anyone can operate (especially new business operators without a fraction of the knowledge that you have about your business). Most of all though, you need to demonstrate a track record of profitability. Your prospective Franchisees need to be reassured that they can make money. A lack of track record will make your sales a lot harder.

The business model that you can franchise has to be packaged in such a way that it will physically work form those people that you accept as new Franchisees.

A big problem faced by Franchisor groups is the lack of understanding of marketing.  This leads to a number of Franchiseeds not receiving  the marketing exposure that they are paying for in your Franchising model and then become very disenchanted with the whole thing.  This then causes the whole Franchise to fail.

(Yes they do actually fail!)

When embarking on a Franchise you need to have a clear idea of how you are going to approach it. Elements to consider are ;

1.   Franchising model, territories or non resricted.?

2.   Socio – economic factors that need to be considered depending on the product.?

3.   Package to be offered, including any plant and equipment.?

4.   Terms of franchise?

5.   Financial royalty fees and upfront investment.?

6.   Marketing levies and actual marketing activities to be undertaken.?

7.   Management infrastructure to manage Franchise Group.?

8.   Money Management  , who invoices and who picks up money where cash involved.?

9.   Product supply to Franchise group.?

10.   Growth of Franchisees, how do you manage new work found by Franchisees from a royalty fee perspective.?

Once you have considered these factors, give us a call and book a free, no obligation  appointment to discuss your business franchising  possibilities on 9832 0900. We will then be able to work out how you can create your Franchising Empire.

We have a comprehensive range solutions to take your Franchising project from start to finish including;

1.   Creation of complete business plan and roadmap and conversion template of existing business into potential Franchise,

2.   Expert market investigatory methods (whether your potential market is viable and profit potential)

3.   Expert analysis of competitors in your market. (pricing of your services and level of competition)

4.   Marketing your Franchise successfully.

5.   Funding your Project,

6.   Funding Franchisee packages.

Once you have considered these factors, give us a call and book a free, no obligation  appointment to discuss your business franchising  possibilities on 9832 0900. We will then be able to work out how you can create your Franchising Empire.