Having a successful business model is only the start. In order to decide whether franchising as a growth strategy is right for your business many factors will need to be considered. Some questions you may need to ask yourself are:
- Do I have a deep understanding of my industry and how it is trending?
- Is the intellectual property protected? If you are considering expanding into other markets you will need to ensure your trademarks are also registered internationally. This includes every iteration of your URL
- Who are your competitors and how competitive is your offering? How does your business differentiate from your competitors? Do you offer the best quality, best service or best price?
- Will your concept appeal to franchisees?
- Will the business model work at the franchisee level?
- Can you systematise your business?
There are in excess of 1200 franchise systems across Australia. You need to determine how does your business and your offering to the market make you stand out. Many franchisees are looking for a good return on their investment these days rather than just buying themselves a job. Just as important, what is your cost of entry as obtaining finance continues to prove to be difficult.
Speak to a specialist
Once you have conducted a feasibility study and are satisfied you have adequately answered the above questions, you will need to engage a specialist franchising solicitor and advisor to assist you in the development of your franchise documentation and to ensure you are compliant with the requirements under the Code and any other applicable laws.