Franchise Your Business
from the franchisees trading, there would be nothing left to pay off the investment the franchisee had made, let alone give them a living income. We recommended they seek to triple the
turnover, improve the profit margin and create some product within the menu that was specific to them before considering franchising. This would give a uniqueness greater than simply the branding above the door. These are all real examples of sincere people wanting to know more about franchising. We hope our advice was given in a positive way so that they could move forward to invest time in their concept and ultimately succeed. To underline these points, I read an article
online recently about a US business formed in Dallas, Texas, that was specifically organised for franchising. Unfortunately, the founders did
not take the time to prove that the business model would work, and although they had 19 franchisees, eight of them failed to thrive. One of the founders owns two shops himself and both locations were failing; the whole business was over $1million in debt. They needed an external businessperson to come in and re-engineer the whole process, negotiate with the franchisees, take management control, come to an arrangement with the supplier in order to stabilise, and move forward. Recently, Ashtons Franchise Consulting helped successfully launch two franchises, including a health and safety consultancy (a UK first) and a CCTV installation business. This demonstrates that it is not simply the traditional man-in-van or fast food concepts that can benefit from the franchising model.
Franchising is a terrific way to expand at the right time. If your business has a pilot operation, a system that enables the business to be replicated, is generating an operating profit and has widespread demand, it is just the sort of business that should seriously consider franchising. To test your readiness for franchising go to
www.ashtonsfranchise.com/are-you-suitable- for-franchising n
Nick Williams
Managing consultant Ashtons Franchise Consulting
n.williams@ashtonsfranchise.com
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