Choosing to franchise your business is an exciting decision to make and a fantastic marketing method. When properly thought out, structured and well-run, a franchise can provide great benefits and satisfaction for both the franchisee and franchisor.
Here are five things to consider about your business to help you decide if franchising is the best option.
1. Successful, distinctive and replicable
A business that is looking to franchise should have some sort of appeal to potential franchisees. You don’t have to have a completely one of a kind brand but it should have an innovative twist or concept behind it that will catch people’s eyes and make them want to own your franchise.
Additionally, no potential business owner will be lured in by a business whose success is based on being the lowest cost producer. This doesn’t mean that your business must be first class all the way through but it should have some positive, distinguishing and assuring characteristics in the marketplace.
2. Flexibility and adaptability
A franchise should be flexible and adaptable to all environments whether it is local, national or international. A business that offers products or services that are only relevant to one specific area is not able to be made into a franchise.
So before you think of anything else ask yourself ‘can my business adapt and change to fit in with the culture of its environment – anywhere around the world?’ If the answer is yes then you may have the potential to turn your business into a franchise.
3. Quality control
If your business is to succeed as a franchise the next step is to decide whether your product or service can be replicated all over the world and still provide the same high quality product and service.
When it comes to franchising a business, you are relying on a separate party to provide the same quality service that you would. One of the most appealing features of a franchise to a consumer is no matter where they go they expect that they will get the same product or service.
If your franchise can not deliver on that chances are your business may not succeed as a franchise.
4. Offer great training
Once you have decided that your business is able to be franchised you must then begin to plan how you will train your franchisees.
Many franchises do not need people who are already trained. For example, mobile pet grooming franchises do not need people who are already trained in grooming animals and offer to train potential franchisees or offer to find already qualified people who can work for them.
So, not only must you ask yourself if your business can be replicated, if you are financially ready and if the quality can be controlled across all franchises, you must also ask yourself if you can transfer all your knowledge and skills into a training manual or workshop.
5. Seek professional advice
When deciding whether or not to franchise your business always consult a professional for advice as there are a lot of financial and legal matters that you must think about before deciding to franchise a business.
By consulting a banker, solicitor, accountant and possibly even a franchise consultant the decision process about whether you’re financially ready will be a bit easier.
A professional will more than likely be able to tell you straight away if franchising your business can be achieved. They also provide the opportunity to ask questions and help you understand what is needed to successfully turn your business into a franchise.
A franchise will usually take a while before it begins making a steady profitable flow and until then you as the franchisor will have to provide enough capital to support the business. On top of that are the legal obligations that you must go through as well.
Owning a franchise can be an extremely rewarding and exciting time for a business owner. Australia is one of the largest franchise nations and there are many businesses out there who would love to establish a franchise. However, establishing and testing a business concept is not an easy thing to do.
So, if you are deciding whether or not to franchise your business be sure to think through these five points but most importantly always seek professional advice.