Choosing to franchise your business is not only an exciting venture, but a fantastic marketing method.
Contrary to what some believe, developing and maintaining a franchise is not an easy and simple way to become rich. However if a franchise is undertaken with skill, patience and the necessary capital, the business will flourish.
When properly thought out, structured and maintained, a franchise can provide great benefits and satisfaction for both the franchisee and franchisor.
Here are the top 5 factors to consider about your business to help you decide if franchising is the best option for you.
1. Franchises have repeatability
Before you think about anything else, ask yourself can my business adapt and change to fit in with the culture of its environment?, can it fit in anywhere around the world? A business that can only offer products or services that are only relevant to one specific area is not ideal for franchising.
A franchise should be flexible and adaptable to all environments Ð whether it is local, national or international.
If you can answer yes to the questions above then you may have the potential to turn your business into a franchise.
2. Franchises must have control over quality
Other than repeatability, the next step is to decide whether your product or service can be replicated all over the world while providing the same high quality standard as the original?
When you choose to franchise your business, you are replying on separate party to provide the same quality service as you would. One of the most appealing features of a franchise, to a consumer, is providing the same quality product or service no matter where they go.
Make sure when you choose to franchise your business that all franchises are able to continue delivering the same quality standards set by you.
3. Franchises must be successful, distinctive and replicable
What makes your business attractive to your customers? 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 a distinctive concept that will catch peoples attention and make them want to own your franchise.
Additionally, no potential franchisees will be attracted by a business whose success is based on being the lowest cost producer. This doesn’t mean that your business has to be first class in all aspects, but it should have some positive, distinguishing and assuring characteristics in the marketplace.
4. Franchises must be able to provide great training
Once you have made the decision to franchise your business, you must then begin to plan how you will train your franchisees.
Many franchises do not need people who are already trained. Take pet grooming for example, mobile pet grooming franchises do not need people who are already trained in grooming animals to offer to train potential franchisees. Mobile pet grooming franchises also do not need trained pet groomers to find already qualified people who can work for them.
In order to provide great training to all your franchisees, you must be prepared to transfer all your skills and knowledge into a training manual or workshop.
5. Take proper professional advice
Always consult a professional for advice, especially in deciding whether or not to franchise your business. There are a lot of financial and legal matters that you must think about before making the final decision.
A franchise will usually take a while to develop before it begins making a steady and profitable flow. Until then, you, as the franchisor, will have to provide enough capital to support the growing business. On top of that, there are also legal obligations that you must go through.
By consulting a banker, solicitor, accountant or even a franchise consultant, the decision making process will be a bit easier. A professional will more than likely be able to tell you straight away if your business can be successfully franchised. Professionals can also provide you the opportunity to ask questions and help you understand what is needed to successfully turn your business into a franchise.
Australia is one of the largest franchise nations with many businesses out there who would love to establish a franchise. Choosing to become a franchise is not only an exciting time for business owners but also comes with many extremely rewarding benefits. However, establishing and testing a business concept is not always an easy thing to do.
If you are still deciding whether or not to franchise your business, be sure to think through these top 5 factors and, most importantly, always seek professional advice.