Franchise Your Business


accredit and promote excellence in the sector, the bfa has strict membership criteria for franchisors based on a code of business practice and the European Code of Ethics for Franchising. As a result, franchising now encompasses a multitude of business types and consumer markets, and has established itself as a respected and highly regarded business model. This means that businesses looking to franchise have some guidelines and standards to which they can work, giving them a better chance of success and prospective franchisees a better opportunity for themselves. To franchise a business is not something that can be done without serious thought and time. There are three key elements to begin with: • The business needs to be proven – it actually needs to have happened, not just the idea on paper or in your head. You need to show potential franchisees that the business works in the way in which they will need to run it


• It needs to be transferable, which means it can be run in multiple locations, using the same system, brand and quality


• It needs to be teachable, something that you can train others to do; there is little point having a franchise that only three people in the world would be capable of running.


If your business passes these three simple


but vital checks, then you can start to look at what you need to do in order to turn it into a franchise. This process requires the production of two crucial documents: an operations manual, to show how everything must be done, and a franchise agreement, which sets out how the relationship and synergy between the franchisor and franchisee will work, and is also there to protect the network and your brand. Both require the expertise of solicitors and consultants, a list of which can be accessed via the bfa’s accredited affiliate members online. Another consideration is geographical territories: how you are going to set out which areas people may be limited to if they join your franchise. Of equally critical importance is the training and support that will be required by your franchisees in order to succeed. This will require thought about the core requirements they may have, both to get them up and running and then on an ongoing basis. All of the planning, building and commitments will cost you money, so you will also need to think about how to finance the work. At this point you must make sure that you don’t underestimate the costs and try to cut corners; a franchise is a successful business model, but only when done well. Don’t try and cut costs in professional advice, otherwise it is likely to end up a lot more expensive down the road.


At the point of speaking to banks, it is


advisable to make sure you speak to the franchise departments of bfa-accredited banks. They will be able to get a better idea of your business and how it operates, meaning that when your potential franchisees approach them to raise capital, the banks will already understand aspects of what will be required. Assuming you have done all of your homework, made all the necessary checks, you have received all the necessary expertise, and are now ready to franchise your business, there is one final aspect to consider: recruitment. Recruitment takes two forms. The first is the


staff that you require to support the franchisees and ensure a healthy network. The second is the recruitment of the franchisees themselves. Franchisee recruitment can be carried


out through a number of channels, such as your own direct marketing, or advertising in the franchise press, like Business Franchise magazine and The Franchise Magazine. There are also websites like FranchiseInfo.co.uk to promote your business, and major franchise exhibitions, supported by the bfa. The important thing is to make sure that you look at all the options and make sure that you are investing in the selection of options that are going to work for you. It is good to try a variety of different channels, but support this by monitoring the responses and where your enquiries are coming from. Only then can you make sure you are investing wisely in your business. n


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