Franchising or licencing your existing business (or even a new business that you have purchased or are thinking of purchasing)

If you have been operating your business for a while and are thinking that it may be a good idea to franchise it 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).

The business model that you can franchise ha to be packaged in such a way that it will phusically 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.