FRANCHISE ADVICE
expansion. Think about rebranding before you consider franchising any further. Your brand should be simple and clearly convey a message of professionalism and quality. Your product or service must be sufficiently different from your competitors to be attractive. This doesn’t mean it has to be totally unique. However, it does need a clear point of difference to convince others to buy into it. It also needs to have staying power. Franchisees won’t want to invest in a business with a fashion-led product or service that may become obsolete over time. It’s more about long-term trends than quick wins. Your business needs to be sustainable and transferable to become a successful franchise.
3. A replicable, teachable concept You must be able to teach someone else your basic business process within a reasonable time period. If your model
“Consider whether you have the right team in place to suppo not ust your existing company but a wider network o ranchisees as well”
requires special skills, then the field of potential franchisees may be reduced. Bear in mind, though, that many franchisees are businesspeople with suitable skills to run a business. They then employ staff with the necessary technical skills to deliver the services. Think about your existing systems
and processes. Are they comprehensive and user-friendly? Can they be operated readily without training? It is worth investing time to ensure your business model is as professional and efficient as possible before you try to sell it to others. Franchisees will be attracted by a professional business opportunity which is ready to hit the ground running.
4. A Sufficient Profit Margin Franchising is not suited to low-margin businesses. There must be enough operating profit to sustain growth while enabling both franchisor and franchisee to enjoy a reasonable return. The franchisor must receive a sufficient profit margin to provide good backup and support and continue developing the franchise offering. The franchisee must have enough margin to build a rewarding business over the life of the agreement, and, obviously, do far more than just recover their initial investment and time working on the business. It must be a win-win situation where franchisee and franchisor succeed together.
BUSINESSFRANCHISE.COM 57
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92
