There is lots to consider when Franchising, and it's not a decision to take lightly. The following list is a great place to start in assessing your readiness. Want help with the process - you can find details of our Franchise Your Business Services here...
Is the concept just the right amount of replicable?
So a tricky line to walk here - you need a concept that stands out in it’s own unique way, and where you can stake a claim as to why you do it better than anyone else. It needs to be tricky enough to replicate, (could be for a variety of reasons) that someone will find it much more challenging to recreate alone than via your franchise.
However it shouldn’t be so complex that you cannot teach people to run it just as well as you run your own business. Consistent quality is crucial, but allow your franchisees to push you to be better too.
Is your brand good enough?
Anyone considering taking on your franchise, is probably looking at other options too. That may be a similar franchised business, an entirely different franchise concep,t or perhaps going it alone. You absolutely need to demonstrate that your model, and your brand is the best route for them out of the options available.
That will encompass both the financial model - realistically if they are going to pay you fees for it, they are going to need to feel that the value you provide covers those fees at least, but also other pain points in their life. They are going to need to believe implicitly that taking a franchise with you is the best answer to the questions that they are posing about next steps.
Who would buy your franchise?
How easy is it going to be to actually find candidates with the right qualifications, skillset and drive to do your business? Some franchise models are relatively straightforward, and anyone can do it - no matter their background. Others are highly specialised and therefore need candidates from a particular field.
If yours is a franchise for anyone - that’s great, the pool of candidates is as big as it can be. But know you are then competing against every brand. Alternatively, you may be fishing in a smaller pond if your candidate profile is niche - but your concept may well resonate much more strongly with those prospects.
Ready to lose a little control?
You have spent years building a business you are proud of, have an impeccable reputation and a brand that is known and loved locally. A Franchised business will quite rightly trade off of your successes and goodwill - however in doing so, you leave yourself exposed to the quality of your Franchisees.
Take time to build a network of people that you trust and believe in. Effectively a Franchise is an affiliation of independent business owners, and your ability to control is based much more around influencing than in an employee relationship. The last thing you want is one rogue franchisee to undo all your hard work by offering an inferior product, or poor quality service.
Can you prove the concept?
The hardest franchisees to find are your first. You may well have proven the concept, but getting someone to be the first guinea pig, without proof that it can be replicated and supported, then run by someone else, can be a challenge.
Franchisees ideally love to see that someone else other than the founder has succeeded. It’s worth therefore having a really robust plan as to how you identify your first candidates, and how you get them going as your pathfinder to lead the way for others. You really want them to succeed - so really get this bit right.
Does it have staying power?
Ideally you want a concept that you know is going to go the distance. Franchisees will be investing significant money, and potentially decades of their lives in running their own business so will want the reassurance that it’s going to be there for the future and will not fade away as technology or fashions change. You need to roll with the punches on this one, maybe you are lucky and your business is timeless - more likely you are going to need to adapt and develop your model over the years. Remember, it’s not just your success resting on it now.
do the financials stack up for the franchisee?
You absolutely want franchisees that are passionate about your business, and love what you do - don’t lose sight though that money talks. Franchising struggles when it is a marginal business financially - there has to be enough for both you and your franchise network to get fed. Focus on the smallest piece of the machine and make sure that an individual franchise owner or location can run a business that is healthy and profitable. Get that bit right and the rest is easier - get it wrong, and your franchise will never grow, no matter how nice your concept may be.
Are you ready for the change that will come?
Do not underestimate the coming change, nor the money and resources you will need to effectively build and support a franchise network. You will fundamentally change what you do as a head office - soon you will likely cease to be at the sharp end delivering your product and service yourself - but will be tasked with servicing a growing group of independent business owners. All with different demands, needs and personalities. A large franchise network is a good snapshot of society, it’s strengths and weaknesses. Get ready for all that encompasses!
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