How to tell when your business is suitable for franchising
Credit: Business Concept: Closed Book with Title Franchising in Stack, Closeup View. Book Title of Franchising. Franchising - Book Title. Toned Image. Selective focus. 3D Illustration.
Franchising can be an exciting time. Watching your brand grow into a household name, sky-rocketing to the moon, is every franchisors dream! With so much information to wrap your business brain around, it’s no wonder why franchising your business is not for the faint-hearted!
Here are my top five tips for creating a franchise business;
Research, research, research! – Spend time, a lot of time, really researching the market your looking to franchise in. Ask yourself: Is the market too flooded? Why are we unique? How will we stand out from our competitors? I spent six months purely on research before I entered into the Australian franchise market.
Legal up – Finding the right Franchise lawyer or legal team to complement your business is your first big task. Speak to other franchisors, ask for recommendations, make sure you interview them, find out their values and how they present themselves as your representative. This partnership needs to be perfect, as you will find yourself speaking to them sometimes on a daily basis.
Understand your business and its systems – You will need to prepare a business plan for franchising. This will look at issues such as the structure of the franchise, franchisee profile, operations and territories that can be allocated to franchisees, staffing resources and your proposed franchisee support system. Having the correct systems in place from the very beginning is paramount to your success. Remembering they don’t need to be perfect as they will evolve over time, along with your company.
Building your brand – As your franchise grows, so does the visibility of your brand. Through franchising you can turn a local Australian brand into a national and even global brand name. Look to invest in a PR campaign to help spread the word about your franchises and gain credibility in your select field.
Recruiting franchise partners – Before you jet set off to advertise your franchises for sale, make a list of what your ideal franchise partner looks like. Look for highly motivated, hard-working individuals who will represent your brand well, who are trustworthy and have integrity. Your ideal franchise partners are out there, you will need to have patience in the process and be able to sort through the good and bad applicants with an open mind.